Internet killed the ‘official ratings’ star
Another one bites the dust, as the likes of TripAdvisor step up to swallow the competition whole.
Star Ratings Australia has fallen on the mighty sword of the internet, announcing it will cease operation on 30 June 2017.
Star Ratings reflect quality accommodation standards, and are determined by more than 200 criteria, that have been ranked by Australian travellers according to what’s important to them.
The scheme, which is owned by the Australian Motoring Clubs, including NRMA, RACV, RACQ, RAA, RAC, RACT and AANT, has been in operation since the 1950s and holds a long history as Australia’s only independent, accredited accommodation scheme.
Michael Reed, CEO of the Australian Motoring Services said, “The Australian Auto Clubs are proud to have provided its members with a valuable and respected scheme that has enabled them to book their holiday or business accommodation with confidence.”
Before the world wide web became a powerful muscle – some might say bully – consumers were receivers of information. Now, not only can they access information anytime anywhere via the internet, but they can create it and communicate it to the rest of the world.
Backtrack 15 years ago, we would have a review of a hotel, and perhaps share it with a few close friends or family members. Today, the rise of social media, smartphones and travel sites like TripAdvisor have given a right shake up to the way consumers communicate with travel industry bodies, and each other.
Consumers are rapidly relying on reviews, social media posts and stories from popular online websites for organising holidays and hotel bookings. From a 2015 study from Deloitte, 59 per cent of holidaymakers said review sites and social media influence their booking decisions.
TripAdvisor released a study that found 96 per cent of TripAdvisor users consider reading reviews important when planning trips and booking hotels, and 83 per cent of TripAdvisor users will “usually” or “always” reference reviews before deciding to book a hotel.
This gives reason to suggest why the Star Ratings Australia’s Offical Accredited Accomodation mark has died, having far less influence on consumers today. The hotel industry no longer sees paying for the official star rating as necessary.
The Star Ratings scheme had around 15,000 hotel subscribers when it launched in the 1950s. Today, however, it’s hotel subscriptions have fallen down to just shy of 4,000.
“In a digital world, where consumers can provide online reviews, and with more accommodation providers choosing to self-rate, the Star Ratings scheme has found its independent review model increasingly unsustainable,” Reed explained.
Hotels are recognising this shift and are adapting to the new way consumers choose accomodation.
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