Losing A Diamond Or Star - By Cheryl Griggs and Harry Nobles

No owner or manager is ever happy to have their property’s AAA or MOBIL rating lowered, but how bad is it? How much does it directly affect occupancy, daily rate, or the property’s image and prestige? Does it have any impact on guest satisfaction which, in our opinion, is the most important factor in the equation?

Loyal repeat guests will rarely forsake you solely on the basis of a lost star or diamond; their patronage was probably not based totally on the rating anyway. They have patronized your property over the years because they liked the product, service and atmosphere you offered. They will continue to do so as long as you give them what made them happy in the first place.

Experts, that is owners and managers, tell us that rates are influenced more by location, local competition, operating costs, and general market conditions than by any AAA or MOBIL rating. The rating may be an important element in establishing daily rates, but it is still only one element.

Property image and prestige are certainly important considerations, but may in fact be more important to owners’ and managers’ ego than to guests. There is also the little known fact that AAA TourBook and MOBIL Travel Guide users do not get a new publication every year. Guests and potential guests do not always know your property’s current rating.

An interesting irony is that a lower rating sometimes has a positive effect on guest satisfaction. Guest have different expectations at a 3 Star/Diamond property than at a 4 Star/Diamond, and you may better meet or even exceed their expectations at the new level. After all, they liked the experience because of you and your staff not because of the rating.

We hope no one interprets this to imply that your rating is not important. While ratings are very important and are often a factor in a property’s success, even a high rating will not guarantee success. Likewise a lower rating or no rating at all does not mean failure; there are many well known, well managed, and very successful lodging operations that have never had a AAA or MOBIL rating, and do not want one.

What options are available if you lose or expect to lose a star or diamond? You can always accept the decision and move on. You can contact the rating organization to appeal and try to get another chance or a delay. You can assess the situation to determine what corrective action is possible and practical to get your rating restored.

If you elect the third option, we suggest you do the usual numbers crunching to weigh the costs of retaining the higher rating against realistic return on the investment, just as you do with all your other decisions.

We do not advocate doing anything just to earn or retain a rating, and never advise our clients do so. We believe that guest satisfaction is always paramount. If you continue to give your guests the same experience that earned their loyalty in the first place most of them will remain loyal, despite rating changes.

Cheryl Griggs & Harry Nobles
www.optimumraying.com
(757) 871-5899

Discuss this article

Date Listed: 2005-03-07

More news about:
Industry: Hotel
Industry: Restaurant
Category: Features
HTrends
Mail Me Print Me


	Main Categories Search Submit Help/FAQ Feedback


	Industries: Hotel \| Restaurant		Tuesday, March 08, 2005
	Restaurant Industry: News \| Jobs \| Real Estate \| Resources \| Suppliers \| Tradeshows \| Trends