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

IND.D.004.16 April 2004V. CONCLUSIONS1. Syn<strong>the</strong>sis of findingsIt is obvious from this <strong>study</strong>, based on a survey of both <strong>the</strong> public and private sectors,that not only is <strong>the</strong> situation complex – but that <strong>the</strong> solutions are just as complicated.Classification by o<strong>the</strong>r entitiesFirst and foremost, it should be noted that <strong>the</strong> <strong>study</strong> does not attempt to do more thanrefer briefly to classification standards or criteria used by consumer bodies or t<strong>ra</strong>velprofessionals e.g.:- Consumer guides (Michelin, RAC, AA etc.)- Global Distribution Systems (GDS) (Amadeus, Galileo, Sabre etc.)- Computer Reservation Systems (CRS) and brokers- GSM codification used by computers and telephone technology in cars- Major voluntary chains and consortia- Major hotel chains- Major hotel f<strong>ra</strong>nchisors- Tour Ope<strong>ra</strong>tors- ISO (International Organisation for Standardisation)It would also be useful to take a look at furnished rentals, i.e. nei<strong>the</strong>r hotels nor resorts,which form a large share of <strong>the</strong> holiday rental market. These are often subject to <strong>the</strong>same rules and regulations as regular private rentals, <strong>ra</strong><strong>the</strong>r than those applying totourist accommodation.In addition to all <strong>the</strong>se classification standards or criteria, o<strong>the</strong>rs are laid down bygovernments, professional bodies or private enterprises.Consumer-driven?One point is obvious – all <strong>the</strong>se approaches claim to be for <strong>the</strong> benefit of <strong>the</strong> consumer.Yet consumers are very <strong>ra</strong>rely consulted even though many organisations claim to beacting on <strong>the</strong>ir behalf. Here one fundamental difference can be noted between <strong>the</strong> publicand private sectors. When such standards and criteria are laid down by governments,<strong>the</strong>y tend to remain in force for years at a time, are infrequently checked and <strong>ra</strong>relyupdated to meet changes in fashion and consumer taste or take account of changes indestinations and markets.In this respect, <strong>the</strong> private sector is much quicker at responding to demand, as instancedby such developments as timeshare, resorts, villas providing t<strong>ra</strong>ditional hotel servicesetc. Similarly, <strong>the</strong> criteria set out in private-sector consumer guides are much moreresponsive to consumer and market demand. Many surveys show that consumer choiceis governed first and foremost by price and destination, <strong>ra</strong><strong>the</strong>r than by classificationsystems that are so complex that <strong>the</strong> consumer is ei<strong>the</strong>r unaware of <strong>the</strong>m or unable todecipher <strong>the</strong>m.In fact, where <strong>the</strong> public sector is concerned, government interest in having aclassification system is often prompted by <strong>the</strong> need to organise <strong>the</strong> domestic market,obtain statistics and assess competition from neighbouring countries/destinations.- 79 -