With guest review scores on platforms such as Google Reviews, Booking.com, Tripadvisor and Airbnb increasingly influencing booking decisions, how relevant is official star grading in the modern hospitality industry?
Brett Tungay, National Chairperson of FEDHASA, says consumers are generally placing greater trust in the experiences of previous guests than in a formal classification system.
“From our members’ experience, very few guests now specifically ask whether a property is officially star graded. In many cases, they are far more interested in whether an establishment has a 4.7 or 4.8 review score from hundreds of recent guests than whether it carries four or five stars. Many travel consultants also use online review scores as their first quality filter.”
Where stars still count
While he believes that grading may have become less influential among individual leisure travellers, Tungay says it continues to play an important role elsewhere in the tourism value chain.
“Star grading has become more of a business-to-business credential than a business-to-consumer marketing tool. It remains useful for certain distribution channels, procurement processes and international tour operators.”
Larger branded and corporate hotels, Tungay says, derive the greatest value from official grading because government departments, conference organisers and international tour operators still include star grading in some procurement requirements.
Grading also plays a significant role in the luxury market where consumers may expect independent verification that a property meets recognised standards.
Browen Auret, Chief Quality Assurance Officer at the Tourism Grading Council of South Africa, says hotels, lodges and establishments targeting international visitors, business travellers, tour operators and organised groups could derive significant value from grading because these markets often required recognisable indicators of quality.
However, she points out, relevance is not confined to the higher end of the market. Travellers choosing two- or three-star establishments also want confidence that properties meet consistent standards.
“A five-star property and a two-star property make different promises but the principle is the same: travellers should have clarity about what they are purchasing.”
Star ratings are one of many “trust signals” a modern traveller uses to make decisions, adds Auret.
“The conversation shouldn’t be framed as ‘star grading versus online reviews’. Reviews provide social proof, digital platforms provide convenience and comparison while official grading provides independent quality assurance and consistency. Both are valuable; they just serve different purposes.”
Delivering return on investment
While grading continues to provide value across different accommodation segments, the decision to participate is ultimately commercial. For small establishments in particular, the cost of obtaining and maintaining a grading can be difficult to justify if most bookings are generated through online platforms.
“Obtaining and maintaining grading requires time and financial commitment. Many smaller operators question whether the investment generates sufficient additional bookings when the vast majority of their business comes through online platforms where guest reviews have a much greater influence on purchasing decisions,” says Tungay.
“If the industry had to choose what influences bookings today, it would undoubtedly be online reviews. However, grading still provides an independent quality benchmark that can complement a strong online reputation, particularly in the corporate, government and international wholesale travel markets.”
