Perceptions of Chinese hotels.(INTERNATIONAL FOCUS)

The Star Effect

We were particularly interested in the effect of a hotel's star rating on guests' perceptions of that hotel. Depending on the star rating and the particular attribute, we found the following three relationships: (1) a positive correlation between star rating and the importance of certain attributes, (2) a negative relationship between star ratings and many of the attributes' importance, and (3) a U-shaped curve depicting the relationship between star ratings and ratings for some of the attributes. So, for example, we found a positive relationship between hotel rating and access to highways and airports. Those using five-star hotels tended to rate this item the most important, and as the star rating of the hotel declined, so too did the importance attributed to this item. More common was a statistically significantly negative relationship, where the importance attributed to an item was higher as the star rating of the hotel was lower. This was true in the case of such items as being part of a chain or group of establishments, being part of an international chain, having a business center, having staff who recognize you by name, having a swimming pool, and having overall good decor. We think that this result might be explained by the idea that those who are not able to afford a high-rating hotel seek assurance that the hotel being booked is of a good standard. Paradoxically, the criteria become more important when there is less expectation of their being achieved. That is, the higher star rating functions as an indication that the expected services will be provided. Finally, we found a U-shaped relationship for such items as the presence of a fitness center and a meetings and conference center. Here it might be argued that their presence in a lower-star-rating hotel was perceived as an assurance of quality, whereas the importance being attributed to their presence in a five-star hotel might be seen as a reflection of genuine preference or need.

Evaluation Scores

Earlier, we raised the issue of the uncertain nature of star status in China's hotels. We believe that the evaluation scores reflect this confusion. The lowest satisfaction scores relate to membership in a domestic or international chain. In many other countries, such a membership would indicate a specific level of facility standards, but in China chain membership is simply no guarantee--particularly outside of the major population centers. From the satisfaction scores in Exhibit 3, we could see that the evaluation of bedding comfort and the comfort afforded by the bed itself achieve a mean score of 5.0 or more on the 7-point scale. More to our point, statistically significant differences on issues of bed comfort and cleanliness were found between the different hotel classifications, with higher-ranked hotels scoring better. Regardless of any differences from one star rating to the next, the top ten items relate to issues of cleanliness, security, and amenities--although it can be noted that evaluation scores are generally lower than the importance scores and are at a level that indicate that further improvements can be made.

The mean overall satisfaction score was 4.68 (standard deviation, 1.46), a score that represents moderate levels of satisfaction at best (see Exhibit 4). However, that finding is tempered by the differential in scores according to star ratings. Overall satisfaction levels are significantly less with lower-star-rated hotels than they are with higher-star-rated hotels (see Exhibit 4). (2) On examining the individual items, statistically significant differences did not exist by star rating for location-related items, but in almost every other case satisfaction ratings were higher for the higher-rated hotels.

The distinctions between the star ratings become clear when comparing the importance-evaluation matrices for each hotel category. To foster this comparison, the axes have the same values, and the cross-points are set at five (rather than on the mean for each group) (Oh 2001). Thus, we are considering the differences in patterns rather than specific values of the coordinates between the categories of hotels. These diagrams are shown in Exhibit 5. In this way, for example, the matrix shows the high level of satisfaction among customers of five-star deluxe hotels for those properties' important attributes.

Comparing the matrices, we see decreasing levels of satisfaction as the star rating of the hotel declines. Generally a linear pattern can be discerned showing a positive pattern between importance and evaluation scores. That pattern is consistent with the mean satisfaction scores in the core products of bed comfort and overall cleanliness already identified. However, in the case of one-star hotels, that pattern becomes much more diffuse, and it is to be noted that the plots are found increasingly in the bottom-left-hand cell, where items score lower in both importance and satisfaction. The diagrams also indicate that a turning point appears with three-star hotels, in that many items begin to appear in the upper-left-hand cell. This characterizes a situation of comparatively low satisfaction scores in items thought to be important.

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Discussion

The main findings of this study are that Chinese hotels of all rankings are meeting clients' core expectations and that star rating influences guests' ratings of attributes. The core expectation that hotels are meeting involves bed comfort and cleanliness. We also found evidence consistent with the notion that users of lower-rated accommodations attribute importance to aspects of hotel service often associated with higher-rated hotels as assurance that their chosen hotel is of good quality. Scrutiny of the importance-evaluation matrices highlights two main findings. First, clear differences exist between the different classifications of hotel, which suggests that star ratings still allow managers of Chinese hotels to differentiate themselves. Second, the analysis illustrates a key satisfaction problem facing lower-rated hotels. We see no logical reason that low-ranked hotels should necessarily receive lower satisfaction ratings. Taking the example of the most humble of accommodations, in other parts of the world backpacker hostels, which offer few amenities, still can achieve high satisfaction ratings from their clientele. Dai (2006) and Gu and Zou (2006) are among Chinese scholars who suggest that low-rated hotels' poor evaluations relate primarily to underinvestment. Even accepting that notion, our findings call into question the degree to which China should be operating one- and two-star hotels. Given that the one- and two-star properties are intended for local residents, and given the low satisfaction levels with those properties, we wonder whether hotels at this level are even appropriate for the current economic development in China. If refurbishing these hotels automatically means upgrading the properties to higher classifications, then will China be able to develop a one- and two-star hotel industry for international travelers, say, the backpacker market of Australasia? We hope that this study can help identify the nature of the problem and perhaps point to solutions.

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