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

IND.D.004.16 April 2004instance, <strong>the</strong>re were about 80 hotels in <strong>the</strong> 4 star category and it was obvious to all that <strong>the</strong>re weregreat differences among <strong>the</strong>m and it was not possible to ascertain much about a specific hotel in asimilar large group.The g<strong>ra</strong>ding of part of <strong>the</strong> hotels did not reflect <strong>the</strong> reality. There were hotels which, havingreceived <strong>the</strong>ir high g<strong>ra</strong>de, lowered <strong>the</strong>ir standards during <strong>the</strong> years and it was difficult, if notdownright impossible to change <strong>the</strong>ir g<strong>ra</strong>de. Additional difficulties in g<strong>ra</strong>ding were discovered alsoin comparisons between city hotels and holiday hotels, new hotels and old hotels, small and largehotels and between regular hotels and apartment hotels and suite hotels.The g<strong>ra</strong>ding of a hotel created certain expectations from <strong>the</strong> client. A great part of <strong>the</strong> complaintsreceived about hotels were in <strong>the</strong> style of “this is not <strong>the</strong> service of a hotel g<strong>ra</strong>ded X stars…. Whogave <strong>the</strong> hotel <strong>the</strong> stars…”etc….ii. T<strong>ra</strong>vel agent reactionThe situation was worsened by t<strong>ra</strong>vel agents who published tour packages to Is<strong>ra</strong>el in <strong>the</strong> old andknown manner of “overnight in a 4 star hotel in Jerusalem…”. These t<strong>ra</strong>vel agents did not promisea specific hotel, or certain level of services – <strong>the</strong>y only promised to give <strong>the</strong> client a hotel of acertain g<strong>ra</strong>de and nothing more.iii. Hotel reactionWhen <strong>the</strong>re are many hotels with <strong>the</strong> same g<strong>ra</strong>de, it is clear that <strong>the</strong>re is a very good 4 star hotelwhose <strong>ra</strong>tes are expensive and <strong>the</strong>re is a bad 4 star hotel whose <strong>ra</strong>tes are cheap. In fact, <strong>the</strong>rehave been many cases in which t<strong>ra</strong>vel agents ordered <strong>the</strong> cheaper hotels for <strong>the</strong>ir clients …however, <strong>the</strong>y stood by <strong>the</strong>ir promise to supply a 4 star hotel, but <strong>the</strong> ones who suffered where <strong>the</strong>clients <strong>the</strong>mselves who thought that this was <strong>the</strong> level of hotels in Is<strong>ra</strong>el.A situation was created whereby hotels used to sell <strong>the</strong>ir g<strong>ra</strong>ding and not <strong>the</strong>ir diverse and variousservices. The g<strong>ra</strong>de influenced <strong>the</strong> <strong>ra</strong>tes and it was acceptable, of course, that a higher g<strong>ra</strong>dedhotel would receive a higher <strong>ra</strong>te. As a result of this, <strong>the</strong>re was a fear that lower g<strong>ra</strong>ded hotelswould not make any special effort- because in any case <strong>the</strong>y would not get anything for <strong>the</strong>irefforts, while hotels of higher g<strong>ra</strong>des also will not try improve <strong>the</strong>mselves since <strong>the</strong>ir g<strong>ra</strong>des aresolid and go on forever.Healthy competitionWith <strong>the</strong> cancellation of <strong>the</strong> g<strong>ra</strong>ding, <strong>the</strong> new name of <strong>the</strong> game is competition. Each hotel mustestablish itself from <strong>the</strong> aspect of <strong>the</strong> product, <strong>the</strong> service, publicity and marketing.The Name of <strong>the</strong> Game is - <strong>the</strong> NameThat is to say, that which determines now is <strong>the</strong> name of <strong>the</strong> hotel – what does it supply, whatservices does it give and what is its real level. In short, does it have a good name or a bad name in<strong>the</strong> market?Indeed, with <strong>the</strong> cancellation of g<strong>ra</strong>ding, we have witnessed a wave of renovations by hotels.Hotels began to publicize <strong>the</strong>mselves more and in particular to publicize <strong>the</strong>ir services and <strong>the</strong>i<strong>ra</strong>menities which <strong>the</strong>y offer <strong>the</strong>ir clients.They started to be concerned about <strong>the</strong>ir good name and understood that this would bring clients.This healthy competition became a regular method of ope<strong>ra</strong>tion.Moreover, wholesalers abroad began to sell hotels and not g<strong>ra</strong>des. Is<strong>ra</strong>eli agents “were forced” tobecome better acquainted with hotels in <strong>the</strong> country and to know what <strong>the</strong>y were selling – nolonger to be satisfied with knowledge of <strong>the</strong> g<strong>ra</strong>de of <strong>the</strong> hotel alone.Hotels entered into intensive competition, <strong>the</strong> power of <strong>the</strong> market did its work and stabilized <strong>the</strong>hotels in <strong>the</strong> country according to actual levels.Hotels aspire to improve <strong>the</strong>mselves diligently in order to put <strong>the</strong>mselves in better standing in <strong>the</strong>hotel market.The Hotel Industry is no longer frozen and conservative.- 69 -