the joint wto & ih&ra; study on hotel classification - Hotel Designs

IND.D.004.16 April 2004for <strong>the</strong> benefit of <strong>the</strong> t<strong>ra</strong>vel professionals (and t<strong>ra</strong>vel agents in particular). These are oftenbased on guides such as <strong>the</strong> US Official Hotel Guide originally only available in print andnow also electronically. Although <strong>the</strong> star <strong>ra</strong>ting system is <strong>the</strong> one most in use throughout<strong>the</strong> world, o<strong>the</strong>r symbols are also used (diamonds, crowns etc.), sometimes even incombination. Irrespective of <strong>the</strong> symbol used, all systems break accommodation downinto three or four major bands (usually luxury, superior, mid-market, budget/economy).Major hotel companies prefer to use b<strong>ra</strong>nding as a means of positioning <strong>the</strong>ir product on<strong>the</strong> market and typically place <strong>the</strong> customer and his/her profile, needs and desires at <strong>the</strong>heart of <strong>the</strong>ir marketing st<strong>ra</strong>tegies.Within <strong>the</strong> hotel industry itself <strong>the</strong> debate continues as to whe<strong>the</strong>r formal classification isnecessary or not - as instanced by HORESTA <strong>the</strong> Danish Hotel Association and <strong>the</strong>Is<strong>ra</strong>el Hotel Association, offering case-studies respectively for and against. Be this as itmay, <strong>the</strong>re are currently moves afoot in a number of world regions – Scandinavia, SouthEast Asia, Middle East and even Europe – for some form of harmonised regional system.Conclusions - ConsumersWhile all approaches to classification claim to be for <strong>the</strong>ir benefit, consumers or <strong>the</strong>irrepresentative bodies are in fact <strong>ra</strong>rely consulted in <strong>the</strong> process of establishing a system.The report concludes that systems set up by <strong>the</strong> private sector are far more responsiveto consumer demand, <strong>ra</strong>pidly recognising new forms of accommodation such as timeshareand resorts, whereas standards and criteria laid down by <strong>the</strong> public sector tend tobe infrequently checked and <strong>ra</strong>rely updated to meet changes in consumer taste – or indestination market.More gene<strong>ra</strong>lly, many surveys show that consumer choice is governed first and foremostby conside<strong>ra</strong>tions of price and destination, <strong>ra</strong><strong>the</strong>r than on <strong>the</strong> basis of complexclassification systems of which consumers have ei<strong>the</strong>r little knowledge or littleunderstanding.Conclusions – Public and Private sector responsibilitiesIn conclusion, it is important to sepa<strong>ra</strong>te out <strong>the</strong> respective responsibilities of <strong>the</strong> publicand private sectors in <strong>the</strong> area of hotel classification. As recent events such as SARS,Mad Cow and Legionnaire’s disease have shown, public authorities must obviouslyensure minimum standards of safety and hygiene in accommodation establishments.Private sector bodies, being commercially driven, must meet <strong>the</strong> consumer’s demand forbetter and more t<strong>ra</strong>nsparent information on both products and destinations. This implies<strong>the</strong> consistent use of recognised and harmonised terminology.Given <strong>the</strong> interest expressed in <strong>the</strong> survey, it would seem advisable to provide stateswishing to set up a national or regional classification scheme with <strong>the</strong> necessary tools todo so. It is <strong>the</strong>refore important to devise <strong>the</strong> appropriate methodology taking into accountcultu<strong>ra</strong>l differences between states as <strong>the</strong>y relate to services and facilities, markets andpurpose of t<strong>ra</strong>vel.To be sustainable, tourism must be able to consolidate its diversity, not seek uniformity.Failing this, any attempt at regional and even global harmonisation of what can only bevoluntary systems would, under <strong>the</strong> guise of clarification, merely end up creating moreconfusion.- 3 -