The STAR Rating system in Australia is gearing up for some big changes in the next couple of years and tourism operators in Port Douglas are asking the question is it still relevant?
With many places already self rating and many consumers paying more attention to reviews from other travellers and information available on the Internet than the opinion of a single assessor who has not stayed at the property, the question of STAR rating relevance is a hot topic.
In Australia the STAR Rating is awarded by the Australian Automobile Association and the star rating does not necessarily reflect a comparative international rating which can be misleading for many overseas travelers. Different rating agencies throughout the world all use differing standards to qualify their rating systems. There is in fact no global standardisation of accommodation ratings.
The bottom line is that both the buyer and the seller need to know if the price offered is a fair price for the product.
To use the star rating as an example the consumer would not want to pay a five star price for a three star product but would be happy to get a five star product for a three star price. Similarly the hotelier does not want to offer a 5 star product at a 3 star price but would be happy to receive a 5 star price for a 3 star product. We all know that in reality any of the above examples rarely happen and this is thanks to the basic economic principle of supply and demand.
An accommodation provider is forced by market forces to set rates that reflect the market value of their product more so than the intrinsic value or the economic realty of owning or managing the property. Rates will always be somewhere between what is needed to stay in business and what can be achieved to maximise returns, regardless of whether 3, 4 or 5 stars are awarded by a rating agency.
So does it really matter how many stars a rating agency allocates based on such bizarre criteria like the type of hot plate available to cook on or whether a power point uses a double adaptor or not? Or the assessors opinion of co-ordination of style and design between fixtures and fittings?
Today the consumer has a massive amount of information at their finger tips, more than enough to make an informed decision on their own as to whether or not an accommodation option matches their budget and their expectations, and that is what it really all boils down to - consumer expectations.
The star rating system uses a scale of points for hundreds of criteria and the points between each level is around 100 or so. A property at the higher end of the 3.5 star range and bordering on qualifying for 4 may quite easily leap from 3.5 to 4 but would then be at the bottom of the 4 star scale. Instead of attracting 3.5 star expectations that are frequently satisfied and often exceeded that property would then attract 4 star expectations seldom satisfied and frequently disappointed!
A picture speaks a thousand words and it makes more sense for the consumer to look at the promotional material representing the product offered, such as the website and the image galleries where one can see what is on offer and determine if the price is fair value when compared to other properties in the same local market. Does the fact that an assessor has placed a number on a scale of stars to guide the consumer really work any better?
The latest round of inspections in Port Douglas has angered many accommodation providers and plenty are questioning the need for an out dated and expensive (yes, we have to pay to be rated) system.
How many of you take any notice of the star rating and really understand what the star rating actually means or how it is achieved?
At The Mango Tree we have a humble and happy 3.5 stars and we'd be happy to hear what you have to say.
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