6HO703 International Resort and Spa Management

Individual Written Essay

Topic:
A taxonomy for resorts –
Star rating vs. guest reviews - Is the star rating classification becoming obsolete?
Student ID:
Lecture: Mr. Gilles Charlet
Submission date:
Word Count: 2200
Total page: 7

Introduction
According to an article in the Journal of Marketing, the significance of adhering to a
specific set of regulations for the establishment of a star rating system in hotels has
diminished over the years. Nowadays, the emphasis has shifted, "with resorts placing
greater importance on guest comments rather than relying heavily on star ratings,
marking a shift in the industry trend" (Shrihari and Srinivasan, 2012). The following
research analyzes one of the most popular issues in the hospitality industry, which is
the comparison of the star rating and guest reviews. Hence, the research identifies
whether or not the star rating classification is becoming obsolete when the guest review
is more necessary in having a final purchase decision in a taxonomy for resorts.
H1: The star rating classification becomes obsolete when customers decide to have a
final purchase decision in a taxonomy for resorts.
H2: The star rating classification is not obsolete when customers decide to have a final
purchase decision in a taxonomy for resorts.
Analyze and access
Star rating
As Qi and Qiang mentioned in an article, star rating and electronic word-of-mouth has
the same effect in pricing level because it indicates the quality indicator, as well as
infrastructure and service standards level measurement (Qi & Qiang, 2013). Another
article indicates that star rating is a reliable way that the customers can classify the
pricing, service, equipment of a hotel or resort that helps them decide whether they
should book the place or not (Elphick, 2023). Normally, star rating runs from one to five.
One star means the safe and clean low budget infrastructure and fee-based service for
the customer. Two star means the pricing classification in customer's concern and th
limited services or infrastructure. Three star indicates the classification of a diverse
array of services and infrastructure with the good quality of hotel service and
architecture, which is a higher expectation compared to the average type of customer.
Four star decide the type of deluxe hotel or resort with excellent service and good
designing. Five star brings customers the comprehensive services and wide range of
facilities, which means the customers enjoy living in a place with well designing,
thorough detailed architecture, and luxury service standard in hotel or resort activities.
Higher star rating hotels have higher pricing standard. In that situation, benefits and
costs are two important factors that customers have to consider when booking. The
hotel star rating classification offers an impartial evaluation of lodging facilities
(Grossman, 2004). In Grossman's research, he emphasizes the influence of star rating
systems on business operations, since one same hotel can receive varying star ratings
on different websites (Grossman, 2004). For instance, a single hotel received different
star rating information on different nine websites (Grossman, 2004). Despite those
potential problems, customers and service providers decide star ratings is a significant
factor, which leads to the substantial investment in upgrading star categories.
Guest reviews
After experiencing the service of a hotel or resort, customers tend to do guest online
reviews on the accomodation's website. The other potential customers rely on those
reviews to consider their expectation about the place and their choice of staying or not.
For example, the hotel website, online feedback site, and social media site are online
platforms where customers can look for other customer's reviews, photos, and
complaints. On a positive way, the good reviews bring them the good thoughts about
the service and facilities of a hotel or resort (Mauri & Minazzi, 2013), and the way that
the hotel online website administrator answered the questions and complains of
previous customers brings potential customers the satisfaction, which makes them
decide to book the place (Li et al., 2017). Furthermore, resort managers rely on the
customer reviews and consumer behavior in the process of booking to upgrade the
technological system of online distribution channels platforms. Online customer review
can be seen as another form of word-of-mouth, which has a great impact on the
potential customers. Modern customers prefer the reviews which are presented in
written and numeric forms on online platforms, and they emphasize that those ways of
reviews are crucial resources of information about hotel and resort's judgment
(Vermeulen et al., 2009). Specifically, online hotel reviews are shaped by the sentiment
expressed in the reviews and the consumer's familiarity with the reviews established. All
information about the quality of a hotel, including services and facilities, are extracted by
customers on online platforms, which helps the potential customers conduct the
purchasing process conveniently and efficiently.
Compare and contrast
First side of the argument: The star rating classification becomes obsolete when
customers decide to have a final purchase decision in a taxonomy for resorts.
“The star rating systems might not remain relevant and up-to-date” (Koutoulas &
Vagena, 2022). Some businesses use the same classification system without an update
in several years. The problem of not updating the new categories and critias in the star
rating system impacts their reliability. A star rating system can be seen as a "living
organism", which should be adjusted to adapt to a rapidly changing way of hotel
market's condition, especially, the online marketing and distribution is growing fast in
nowadays technology advancement.
Also, a significant part about star rating classification should be mentioned if the hotel
ratings can be manipulated (Mayzlin et al., 2014). Although the classification by expert
inspectors can be seen as more valid and objective, it is less influencing compared to
guest reviews. The hoteliers tend to integrate the guest rating into the official
classification Blomberg-Nygard and Anderson, 2016). Therefore, the opinion of
inspectors cannot be clearly considered, and it is a general opinion of guests also. This
aspect contributes to the subjective and untransparent perspective in the rating system
As for right now, instead of relying on the traditional categorization systems, most
customer and business travelers currently prefer choosing the information from the
already developed and popular social media platform to decide the place and price of
where they want to book. (Friedlander, 2014). This trend grows every year, the online
reputation impacts the high star rating potential. Most travelers don't focus on the
number of stars of the resort, they evaluate their taxonomy in the following factors:
location, type of trip, and specific reviews such as free wifi, buffer, parking, pet, etc. For
instance, “Booking.com, TripAdvisor, Kayak, and Skyscanner become popular because
they combine all that needed information, including online reviews to attract the source
of customers” (Friedlander, 2014). Consumers and business travelers are influenced by
online comments and the content of the internet users much more than the traditional
categorization systems.
Second side of the argument: The star rating classification is not obsolete when
customers decide to have a final purchase decision in a taxonomy for resorts.
The star rating classification, somewhere, still plays an important role in customers'
choice since it shows a good reputation with good marketing strategy. Customers see
that factor as a first judgment when they look for a place to stay. Research by the
International Journal of Hospitality Management revealed statistics have been proven
that two-thirds of customers in three to five-star hotels used a review system more often
than those in one and two-star levels (Callan, 1995).
The star rating classification system is nowadays changing relying on customer’s
behavior. The research conducted by Bloomberg-Nygard and Anderson indicates that
the official categorization of hotels now is progressively becoming less and less
obligated, yet industry-driven. This process of categorization instead of being operated
by the government, will now be run by one certain industry body. (Bloomberd-Nygard &
Anderson, 2016). Hence, the star rating system becomes more flexible and objective,
which is adapted to the demands and needs of guests. Understanding those need to
frequently adjust categorization standards that are suitable and appropriate has become
the crucial stratergy for the survival of the classification system.
An article by Lounge Up indicated that the new classification, which came into effect on
1 April 2022, has evolved by focusing on the digitalisation of hotel services and adding
environmental and societal criteria (Lounge Up, 2022). All those factors help the resort
remove obsolete conditions to the past, focus on employee training, update hospitality
trends, especially in sustainability. The world is going into integration, the technology
and the environment is highly valued in the hospitality area. Customers tend to stay at
the resort having those factors, which focus on their needs and environmental
protection.
Opinion
The classification based on star ratings holds significant importance in categorizing
resorts, with customers often relying on star numbers alongside reviews when choosing
a place to stay. Although not outdated, industry classifications and the conventional star
rating system are diminishing in pertinence. Consequently, there are managerial
implications stemming from these current findings that can enhance trust when
selecting a resort based on star ratings.

Primarily, a forward-looking classification system should shift its focus from emphasizing
buildings and facilities to objectively evaluating the service quality and every experience
provided to customers. Secondly, the star rating categorization should distinctly
delineate between guiding resorts to improve infrastructure and managing customer
expectations. Thirdly, the star rating of a resort should be transparent and objective.
Operators are expected to rate a hotel's event activities and guest review platforms,
covering both quality and operational standards in the rating process.
Furthermore, guest priorities evolve over time, and star ratings should reflect these
changes. Contemporary concerns center around sustainability, safety, security,
cleanliness, and hygiene, emphasizing the need for a common review of star rating
standards and procedures by operators of classification systems. Additionally,
technology plays an important role in expediting these changes. Recent updates of star-
rating standards reflect the influence on check-in procedures of mobile technology, in-
room communication, and also entertainment. The rapid advance of guest-review
platforms has also intensified the concentration of customers' experience in ratings.

Conclusion

The essay analyzes the relevance of star rating classifications versus guest reviews in
resort taxonomy underscores a shifting landscape in the hospitality industry to answer
the question if the star rating becomes obsolete. The findings suggest that although not
outdated yet, industry classifications and the conventional star rating system are
diminishing in relevance. It becomes evident that the future of resort taxonomy
demands a nuanced approach. Moving beyond a mere assessment of infrastructure, a
future-proof classification system should prioritize the objective evaluation of service
quality and customer experiences. Additionally, clarity in differentiating star rating
groups is essential, guiding both resorts in enhancing their offerings and managing
customer expectations effectively. Moreover, the transparency and objectivity of the star
rating process need to be enhanced, incorporating feedback from guests and aligning
with contemporary priorities such as sustainability, safety, and cleanliness. The rapid
evolution of guest preferences, coupled with the transformative impact of technology,
emphasizes the crucial need for continuous review and adaptation of the methods and
standards for star ratings.

References
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