Hotel categorization

From CEOpedia | Management online

Hotel categorization, or hotel rating is the basis for determining quality standards in the hospitality industry. There are five categories of hotels, motels and guest-houses (1-5 stars), 4 categories designated to camp-sites (1-3 stars) and three categories of houses and youth hostels tours (marked with Roman numerals). To be included in the right kind of hotel facilities and obtain the appropriate category, object must meet the minimum requirements for each category.

The detailed minimum quality requirements for hotel facilities and hospitality services are precisely described. Minimum quality requirements include:

  • external fittings surrounding areas (e.g. lighting),
  • interior features of the object (water supply, sewerage, heating, air conditioning, elevators),
  • reception and dining room (e.g., minimum areas, the number of toilet facilities),
  • minimum range of hotel services (such as wake-up calls),
  • minimal surfaces hotel rooms, equipped with furniture, lighting, sanitary and hygiene facilities,
  • minimum qualifications required of staff.

Purpose of hotel categorization

Hotel categorization is used in order to:

  • help people identify standard and level of services,
  • protect consumers,
  • have an influence on services and prices,
  • vary the requirements according to the type and providing services,
  • determine the requirements for each category relating to equipment, appearance, etc.,
  • facilitate trade and contact between people.
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Star system in hotel categorization

Hotel rating is based on a scale of 1-5 stars, 5 stars means the highest level of services, 1 star means the lowest/poor standard. Five-star system helps to classify hotels according to their quality and makes that it is easier to compare them. Hotel star rating system is used almost all over the world, but there are some exceptions e.g. in the USA instead of star system, diamond system (AAA Five Diamond Award) is used. In England, in addition to star system there exists crown system. Despite the existence of other systems, the star system is an essential tool to rate hotels.

Different countries have different requirements for hotel standard. The same number of stars not exactly means the same in other country:

  • ***** five-star hotel (luxury) - provide the guests with the highest level of accommodation and services. The highly qualified and multilingual staff (receptionist, concierge, page boy, doorman etc.). Reception and room service opened 24 hours. The lobbies are spacious, the rooms complete with stylish furnishing and quality linens. There are various amenities and facilities to meet the needs of most demanding customers. Locations of the 5* hotels can vary from the very exclusive locations of a suburban area, to the heart of down-town.
  • **** four-star hotel (first class) - provide the guest with the level of service above average. The rooms are spacious and they are well lit and furnished. Room service and other facilities and amenities are present. The highly qualified staff. Hotels are usually located near shopping malls or city centres, there are dining areas and other major attractions.
  • *** three-star hotel (middle class) - provide the guest with the average level of services. Large, well-appointed rooms and decorated lobbies. They are often located near major express-ways or business areas, convenient for shopping trips, have moderate to high priced attractions
  • ** two-star hotel (economy) - It is usually small to medium-sized and conveniently located. The facilities typically include telephones and TV's in the bedroom.
  • * one-star hotel (budget, tourist) - small hotels managed by the proprietor, usually have a more personal ambiance. In the room there are only basic equipment. Poor standard of services.

Exception from the five-star system:

  • ******* seven-star hotel - The Burj Al Arab hotel in Dubai (described as "the world's only seven-Star hotel")

Advantages of Hotel categorization

One of the main advantages of hotel categorization is that it allows travelers to easily compare various accommodation options and make an informed decision. Additionally, it also allows hotels to demonstrate the quality of their services to potential customers and encourages them to maintain high standards. Here are some other advantages of hotel categorization:

  • It provides a reliable and standardized measure of quality assurance for both customers and hotels. It ensures that hotels provide consistent services and amenities across different categories and locations.
  • It helps customers to identify the amenities and services that are available at each hotel and the level of quality they can expect. This makes it easier to choose a hotel that is suitable for their particular needs.
  • It enables customers to accurately compare prices and services when looking for accommodation.
  • Hotel categorization encourages hotels to keep up with industry standards and continually improve their services. This helps to ensure that customers are getting the best possible value for their money.
  • It also helps hotels to stand out from the competition and attract more customers.

Limitations of Hotel categorization

Hotel categorization, although useful for determining quality standards, has several limitations:

  • It does not take into account the individual tastes and preferences of guests, which may vary significantly. For example, a hotel may be rated five stars and have luxurious amenities, but some guests may prefer a simpler and more rustic accommodation.
  • Hotel categorization does not always accurately reflect the actual quality of a hotel. Hotels may receive a higher rating than deserved due to their location or other marketing factors.
  • The criteria used to assign a hotel’s rating can be subjective and inconsistent. Different countries and regions may have different criteria for rating a hotel, resulting in discrepancies in ratings.
  • The cost of achieving and maintaining a certain hotel category can be prohibitive for smaller establishments, preventing them from competing with larger, more established hotels.
  • Hotel categorization does not take into account the service culture of a hotel. Quality service can make a huge difference in the guest experience, but cannot be measured by a star rating.

Other approaches related to Hotel categorization

To supplement hotel categorization, there are other approaches that can be taken to determine quality standards in the hospitality industry. These approaches include:

  • The use of customer rating systems, where customers rate their experience in a hotel or motel to determine the quality of service and overall satisfaction with their stay.
  • The use of star rating systems, where hotels, motels, and guest-houses are rated on a scale of 1-5 stars. This system uses criteria such as size, furniture, service, and cleanliness to determine the rating.
  • The use of inspection systems, where a team of independent inspectors visits the hotel or motel and evaluates it against preset criteria.
  • The use of assessment systems, where a team of independent consultants assesses the hotel or motel against predetermined criteria.

In summary, there are a variety of approaches that can be taken to determine quality standards in the hospitality industry, including customer rating systems, star rating systems, inspection systems, and assessment systems.


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