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Original marketing The Hospitality Newsletter Team · ·For: Owner, GM, Revenue, Marketing

Brand Joy Lab Data: Hotels Tie Alternative Lodging in Guest Joy

Hotels lead in trial and consideration, but vacation rentals and hostels match them on traveler sentiment once a stay occurs.

The short answer

Research from Brand Joy Lab shows hotels match vacation rentals and hostels on guest joy, scoring within two points of each other near 75. While hotels dominate five-year trial, more than 90 percent of travelers who sample any format say they would book it again.

69.4%
past five-year hotel usage among respondents
Brand Joy Lab August study
71.3%
traveler consideration for vacation rental stays
Brand Joy Lab August study
696
third-party managed hotel guest satisfaction score
J.D. Power 2026
Brand Joy Lab Data: Hotels Tie Alternative Lodging in Guest Joy
Photo: Mikhail Nilov / Pexels

The short version

  • Hotels, vacation rentals, and hostels tie within two points of each other around 75 on the 100-point Joy Index.
  • 90 percent or more of travelers who complete a stay in any lodging format say they would book it again.
  • J.D. Power recorded a 14-point rise in third-party-managed branded hotel satisfaction, reaching 696 in 2026.

Brand Joy Lab survey data reveals that while hotels dominate customer acquisition and historical usage, they hold no distinct loyalty edge over alternative lodging once guests complete a stay [1]. Hotels, vacation rentals, and hostels all score within two points of each other around 75 on the 100-point Joy Index, with repeat consideration exceeding 90 percent across every format [1].

How do hotels compare to vacation rentals and hostels on guest joy?

Hotels tie alternative lodging models on actual guest sentiment, according to survey research from marketing tool Brand Joy Lab [1]. Among travelers who stayed in each respective format, hotels, vacation rentals, and hostels all produced comparable satisfaction, finishing within two points of each other near 75 on the 100-point Joy Index [1]. Asian Hospitality reported that direct guest experience narrows the gap between expected and experienced joy [1].

While hotels enjoy higher past trial among domestic travelers, the emotional result of an alternative lodging stay equals the hotel experience [2]. This parity removes the assumed post-stay retention advantage hoteliers rely on when going head-to-head with short-term rentals and hostels [1].

What does the spread between lodging consideration and trial reveal?

Consideration exceeds actual trial across all three lodging categories, leaving alternative operators room to win business from traditional properties [1]. Hotels maintain the broadest reach, with 69.4 percent of respondents reporting a stay during the past five years, while vacation rentals captured 36 percent and hostels reached 9.1 percent [1]. In addition, 23.8 percent of consumers surveyed by Brand Joy Lab had stayed in none of the three accommodation formats during that five-year span [1].

vacation rental living room couch
Photo: Jonathan Borba / Pexels

As Asian Hospitality reported, interest outpaces verified bookings in every segment [2]. While 87.6 percent of consumers would consider booking a hotel, 71.3 percent would consider a vacation rental and 41.6 percent would consider a hostel [1]. The Brand Joy Lab report noted that this gap gives vacation rentals and hostels headroom to expand their market footprint by turning prospective travelers into first-time customers [1].

Lodging Format5-Year Past UsageBooking ConsiderationPost-Stay Joy Index Score
Hotels69.4%87.6%~75 (within 2 points)
Vacation Rentals36%71.3%~75 (within 2 points)
Hostels9.1%41.6%~75 (within 2 points)
None of the Three23.8%N/AN/A

How does guest retention perform once a traveler tests alternative lodging?

Retention levels following a verified stay are nearly identical across both commercial hotels and non-traditional lodging [1]. More than 90 percent of travelers who had stayed in a hotel, vacation rental, or hostel confirmed they would consider booking that same format again [1].

Because repeat consideration surpasses the 90 percent line for all three categories, traditional hotels encounter retention pressure whenever a customer tests a rental or hostel [1]. The hurdle for alternative operators centers on customer acquisition; once cleared, alternative properties retain guests at rates that match hotels [2].

What specific attributes do guests associate with each lodging type?

Travelers associate distinct amenities and psychological values with each lodging model [1]. Hotel guests anticipate secure storage, quiet surroundings, Wi-Fi, personal safety, private bathrooms, and privacy [1]. Vacation rental guests expect comfortable common spaces, storage, quiet environments, local experiences, and chances to meet people [1].

hostel shared lounge seating area
Photo: David Pech / Pexels

At the brand level, the study found hotels remain linked to privacy and security, vacation rentals connect to togetherness and comfort, and hostels associate with convenience and community [1]. The report advises operators to show travelers what to expect prior to booking, noting that pre-reservation expectations do not always match post-arrival reality [1]. The central takeaway from the research directs lodging operators to sell the stay rather than the tier, focusing on experiential delivery rather than price and perceived quality levels [1].

How do hostel guest expectations change following an actual stay?

Hostels undergo the most pronounced shift between pre-booking assumptions and verified stays [1]. Among travelers who had stayed in a hostel, expectations of low prices dropped 17 points, while expectations of finding no hidden fees dropped 14 points [1].

Simultaneously, travelers with hostel experience demonstrated higher expectations for comfortable common spaces and a central, local neighborhood setting [1]. This realignment demonstrates that travelers look past budget pricing and prioritize social spaces and neighborhood immersion after completing a stay [2].

How are third-party hotel operators performing on overall guest satisfaction?

Branded hotels managed by third-party operators achieved documented satisfaction gains in recent tracking [1]. A separate J.D. Power study cited in the report found that guest satisfaction at third-party-managed branded hotels increased 14 points to 696 in 2026, up from 682 in 2025 [1].

Operational gains occurred across every department evaluated by J.D. Power [1]. Guest rooms delivered the single largest satisfaction increase among all hotel operational areas [1].

Reported by

This article was written from the following reporting. Follow the links for the original coverage.

Frequently asked

+What score do hotels and alternative lodging receive on the Joy Index?

Hotels, vacation rentals, and hostels all score within two points of each other, around 75 on the 100-point Joy Index among guests who have completed a stay in each format.

+What percentage of travelers would book the same lodging format again?

More than 90 percent of people who stayed in a hotel, vacation rental, or hostel stated they would consider booking that lodging type again in the future.

+How wide is the consideration gap for hostels and vacation rentals?

Consideration outpaces trial across the board. Vacation rentals show 71.3 percent consideration against 36 percent past five-year use, while hostels show 41.6 percent consideration against 9.1 percent past use.

+What core brand attributes do guests associate with hotels versus vacation rentals?

Hotels are linked to privacy, security, quiet, Wi-Fi, and private bathrooms. Vacation rentals are linked to togetherness, comfort, storage, quiet, local experiences, and opportunities to meet people.

+How did third-party branded hotel satisfaction change in 2026?

According to a separate J.D. Power study, guest satisfaction at third-party-managed branded hotels increased 14 points from 682 in 2025 to 696 in 2026, led by gains in guest rooms.

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