Star-rating losing popularity as hotels rate themselves

According to The Courier Mail, star ratings no longer have the same gleam as they once had, say hotels, whose owners more often taking the step of self-appraisal.

According to the Australian Hotels Association a rising number of accommodation providers are self-rating their facilities, forgoing the traditional star rating system run by the Auto Clubs of Australia.

AAA Tourism has long rated accommodation facilities on a 1-to-5-star basis.

Accommodation companies pay an annual fee to the AAA, which in turn provides independent assessment of facilities, along with inclusion in travel books the National Accommodation Guide or National Tourist Park Guide.

Facilities are broken into categories, with each category requiring standards to be met to qualify for a star rating.

Hamish Arthur of the AHA said the current system was confusing for many consumers, and hotels were now reluctant to pay for an independent assessment when they could post equivalent self-ratings on accommodation websites.

Mr Arthur said consumers became confused when they saw two very different facilities rated the same – for example a serviced apartment and a hotel – and he thought some overseas visitors mistakenly booked 5-star facilities that didn’t meet their expectations on arrival.

“The main issue we have is the confusion with the current system, particularly in terms of international travellers,” he said.

“Given that, in our opinion, there are flaws with the current system, if the AAA system was much clearer I think there would be distinct differences.”

AAA’s national manager of Star Ratings Australia Paul Baumgartner said AAA was aware of the AHA’s complaints, particularly in regard to the difference between serviced apartments and hotels.

He said AAA was currently looking at changes to some of the guidelines and categories but he said: “At this point in time it is a requirement that both ratings and categories are clear (when marketing product).”

Mr Baumgartner said he did not think a rise in self-rated accommodation was good for the tourism industry. “I think it’s not helpful at all for the consumer or the accommodation industry that companies can actually self-rate when there is no transparent criteria.” 

Brisbane’s Emporium Hotel is one facility that uses a self-rating system.

General manager Peter Savoff said while he was considering applying for AAA rating status, he would wait until AAA undertook its review.

He said Emporium, which classifies itself as a boutique hotel, would benefit if AAA made more inclusions for alternative luxury product.

“I’ve been told that there are discussions between the AHA and AAA and if an update occurs we would like to participate. If it doesn’t happen, we will probably apply on the current system sometime in the future.”

Despite not having the AAA rating, Mr Savoff said self-rating had not disadvantaged them.

The top-end Hilton Hotel group is another company which does not use the AAA system, and instead adopted an internal rating method some time ago.

Charlotte Seymour, regional PR manager for Hilton Hotels Australasia, said a standardised global system was established for all Hilton Hotels to ensure there were no discrepancies in the brand.

She said all hotels were checked regularly to ensure they maintained the same rating, which she said was equivalent to an Australian 5-star.

“In the past some hotels have been part of the AAA rating system but moving forward the decision was made that in order to keep our global standards we would have an internal self-rating system,” she said.

A Report by The Mole