Claire Dawson
The hospitality industry uses classification systems to help guests understand what to expect from their experience and to help hotels market themselves effectively. Hotels are typically classified using a star rating system, with one star being the most basic accommodation and five stars being luxury. However, there is no universal standard for these ratings, and different countries have their own unique systems and organisations that determine hotel ratings. Hotels can also be classified by their size, target market, location, available facilities, level and type of service, affiliation, and ownership.
| Characteristics | Values |
|---|---|
| Purpose | To help governing bodies determine the category of a specific hotel and to help guests set expectations for their experience |
| Types of classification systems | Star ratings, diamond ratings, crown ratings, tiers, property categories, types of hotels, room types, etc. |
| Factors considered | Room size, amenities, guest services, food and beverage options, location, price, geography, services provided, level and type of service, affiliation, ownership, etc. |
| Examples of classification systems | Smith Travel Research System, Forbes Travel Guide Star Rating System, AAA Diamond Rating System, Hotelstars Union, Salam Standard, etc. |
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What You'll Learn
Star ratings
The star rating system is not standardised globally, and there is no single governing body for hotel star ratings. Most organisations that provide star ratings in each country are independent agencies rather than government authorities. For example, in the United States, the American Automobile Association uses a diamond rating system instead of stars. In Australia, star ratings are judged by criteria ranked by Australian travellers and licensed by the Australian Tourism Industry Council (ATIC). In Europe, the Hotelstars Union was established in 2009 and is now used in over 20 countries.
While hotel star rating systems have historically focused on areas like quality of service, luxury offerings, and hotel facilities, it is becoming increasingly common for properties to be rated according to other factors, such as sustainability and environmental consciousness. For example, Green Key International awards hotels the Green Key label if they meet criteria related to waste, clean energy, water management, sustainability, and overall environmental awareness.
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Property categories
The most familiar way to classify properties is the star rating system, which ranges from one to five stars, with one being the most basic and five being luxury. However, there is no universal standard for these ratings, and different countries have their own agencies and guidelines for assigning star ratings. For example, Belgium, Denmark, Greece, Italy, Malta, Netherlands, Portugal, Spain and Hungary have laws defining hotel ratings, while in Germany, Austria and Switzerland, the rating is defined by the hotel industry association. The UK's AA Hotel and Hospitality Services also provides star ratings.
The criteria for star ratings typically include room size, amenities, guest services, and food and beverage options. Some agencies also consider location and desirability of the area, as well as the presence of on-site restaurants, room service, and other dining options.
Beyond the star rating system, there are various other property categories in hospitality. These include:
- Small (<25 rooms), medium (26-300 rooms) and large (>300 rooms)
- Boutique hotels: smaller, independent hotels offering a higher-end experience to a specific demographic
- Chain hotels: national or multinational companies offering a consistent experience
- Full-service hotels: offering a wide range of amenities and services, including on-site restaurants, banquet and meeting rooms, concierge, spas, gyms, and retail shops
- Limited-service hotels: a step down from full-service hotels, lacking room service, on-site restaurants, and concierge services, but often including meeting rooms, fitness centres, and swimming pools
- Select-service hotels: a growing segment offering in-room amenities of full-service hotels while keeping prices low
- Extended-stay hotels: designed for guests staying five days or longer, offering discounts and weekly rates
Additionally, hospitality properties can also include travel centres, water parks, amusement facilities, golf courses, cruise ships, assisted living facilities, and restaurants.
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Room types
One of the most common room types is the single room, designed for one occupant with either one bed or a double bed. Twin rooms are similar but feature two single beds, accommodating a maximum of two guests. Double rooms offer more flexibility, often accommodating up to four people with two double beds. For larger groups, triple rooms are available, typically with three single beds or a combination of one double and one single bed. These rooms often include basic amenities such as a television, desk, and closet, with deluxe or family-sized options providing additional features like a mini-fridge or balcony.
For couples or business partners travelling together, queen rooms offer a queen-sized bed, and some hotels even provide options with two queen beds to accommodate up to four guests. King rooms are also available, featuring a king-sized bed that can be occupied by one or more people.
Hotels also offer studio rooms, which provide a flexible and affordable option with a convertible sofa bed and, in some cases, a small kitchenette. A unique variation is the Hollywood twin, which features two twin beds joined by a common headboard. For guests seeking more space and luxury, junior suites or mini-suites offer a separate sleeping area or a small living space adjacent to the bedroom.
Additionally, hotels may classify their rooms based on specific themes or features, such as "pool-side" or "ocean-side," and provide detailed descriptions and images to help guests make informed choices.
The room type classifications allow hotels to optimise revenue, enable guests to set expectations, and facilitate effective marketing strategies.
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Location and services
Hotel classification systems are an important tool for both guests and hotel owners. They help set expectations for guests, enable easy comparisons, and allow travellers to find accommodations that match their preferences and budget. For hotels, classification systems establish quality standards, provide effective marketing angles, and build guest trust.
The most common classification system worldwide is the star rating system, which typically ranges from one to five stars. However, it's important to note that there is no universal standard for star ratings, and the criteria can vary between organisations and countries. Some of the prominent organisations that determine hotel star ratings include Quality Tourism Australia, the American Automobile Association, HotelStarts Union in Europe, and AA Hotel and Hospitality Services in the United Kingdom.
The star ratings are linked to various criteria, including room size, amenities offered, guest services, and sometimes food and beverage options. For example, a five-star hotel may offer premium services like concierge and valet parking, while a one-star hotel may provide basic accommodations with minimal amenities and shared bathrooms.
Location also plays a crucial role in hotel classification. Hotels can be categorised based on their niche, such as being uniquely located in rural areas, major roads, business districts, or scenic locations. For instance, bed and breakfasts (B&Bs) are often located in historic buildings and provide a homey atmosphere, while motels cater to drivers and road-trippers by being situated on major thoroughfares.
Additionally, hotels can be classified based on their services and level of service. Full-service hotels offer a wide range of amenities and services to cater to all guest needs, while limited-service hotels provide comfortable accommodations at a more affordable price point with fewer amenities. Some hotels may also offer specialised services like mobile check-in, mobile upgrades, and AI-powered customer service to enhance the guest experience.
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Independent vs chain hotels
The hotel industry has various classification systems, with the most common being the star rating system, which ranges from one to five stars. Each star rating is linked to specific criteria, such as room size, amenities, guest services, and food and beverage options. However, it's important to note that there is no universal governing body for these star ratings, and they can vary between organisations and countries.
When it comes to independent vs chain hotels, there are several key differences to consider. Independent hotels tend to be singular and not part of a group, focusing on providing unique and personalised experiences. They cater to specific target audiences and focus on originality and creativity in design, offerings, and decor. Independent hotels also tend to be more expensive due to their unique offerings and personalised services. They create guest profiles to register preferences and tailor their services accordingly, especially for repeat guests.
On the other hand, chain hotels offer reliability and standardised design and quality across their properties worldwide. Guests know what to expect from a chain hotel, which is generally a high level of service. Chain hotels have extremely high service standards and offer professional and consistent service across their brand. They focus on quantity and revenue maximisation, often resulting in more competitive pricing.
The choice between independent and chain hotels depends on individual preferences and the purpose of the trip. Some travellers value the reliability and consistency of chain hotels, while others prefer the unique and personalised experiences offered by independent hotels.
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Frequently asked questions
A hotel classification system is an organised structure that helps governing bodies determine the category of a specific hotel.
The hotel classification system that most people are familiar with is the star rating system, which ranges from one to five stars. However, there are other types of hotel classification systems as well, such as the Crown, Diamond, or Forbes Travel Guide 5-Star rating system. Hotels can also be classified based on their size, location, target market, available facilities, level and type of service, affiliation, and ownership.
Each star rating is linked to a set of criteria that considers factors like room size, amenities offered, guest services, and sometimes even food and beverage options.
There is no one global governing body for hotel star ratings. Most organisations that provide star ratings in each country are independent agencies and not government authorities. Some prominent organisations that determine hotel star ratings include Quality Tourism Australia, the American Automobile Association, and HotelStarts Union in Europe.
Yes, in addition to hotel classification systems, there are also different types of lodging classifications, such as hotels, motels, hostels, resorts, and bed-and-breakfasts. There are also different types of rooms within hotels, such as single rooms, double rooms, suites, and standard rooms.
