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Taiwan's hotel rating system: a service quality perspective.(INTERNATIONAL FOCUS)


This study applies content analysis to compare four hotel rating systems, in the United Kingdom, United States, China, and Taiwan as well as to compare the evaluating methods and service-quality measurement of the four hotel rating systems. Focusing on Taiwan's newly revised hotel-evaluation schema, the study analyzes the Criteria of Hotel Service Quality Evaluation established by the Taiwan Tourism Bureau in the light of the five SERVQUAL dimensions. Though Taiwan's hotel rating system is strong on assurance and tangibles, the study suggests that the system would be made more effective by adding factors for reliability, responsiveness, and empathy. Surveys should also be conducted on an ongoing basis to clarify and incorporate consumer viewpoints and to keep hotel rating systems updated. These measures would also increase acceptance and recognition of the hotel rating system by consumers.

Keywords: hotel rating system; service quality; content analysis; Taiwan; SERVQUAL

The Taiwan government is in the process of revising its hotel grading system. In addition to substantive changes, the government is changing its grade representation from a number of plum blossoms to a number of stars. This change was made in part because international travelers typically did not understand the import of the plum blossoms but can instantly recognize the meaning of stars (given the long-established use of stars by Mobil and Michelin). To address the substantive issues of how to develop hotel ratings, the Taiwan Tourism Bureau has examined the American Automobile Association (AAA) system, although as we explain below, the resulting system bears little outward resemblance to AAA's rating system.

Hotel rating systems differ markedly from country to country, as we outline in this article. The criteria employed often reflect local cultural differences in values and preferences (Yu 1992). These inconsistencies may affect ratings of both facilities and service quality. Most tourist hotels in developed countries have adopted rating systems that are consistent across that nation. For instance, while the hotel industries of the United Kingdom and United States of America employ entirely different approaches, both have effective rating systems that can be consulted regarding method of implementation, rating mode, main content, and service quality criteria. Additionally, with the recent rapid development of mainland China's hotel and tourism industry (Pine 2004), the government of the People's Republic has established an effective hotel rating system.

This study compares the content and evaluating methods of hotel rating systems in the United Kingdom, United States of America, China, and Taiwan. Hotel rating systems are also compared in terms of how they measure service quality. Finally, focusing only on Taiwan's rating system, we apply content analysis to examine the dimensions of service quality specified in the "Criteria of Hotel Service Quality Evaluation" of the Taiwan Tourist Bureau according to the SERVQUAL framework promulgated by Parasuraman, Zeithaml, and Berry (1988) (using dimensions of reliability, assurance, tangibles, empathy, and responsiveness).

Comparing Hotel Rating Systems

Since 1990, hotel rating systems have been evaluated and compared in many studies, which typically have been based on opinions of hotel executives and consumers. These studies revealed several trends in hotel rating systems, for example, that service quality is increasingly being emphasized worldwide (Callan 1995). The goal is to confirm not only a high quality of service but also that the expectations and demands of the customer are met.

Even as hotel rating systems have begun to emphasize service quality, measurement of that quality can be subjective, and ratings can vary greatly (Callan 1990). This study applied content analysis to explore and compare hotel rating systems in the United Kingdom, United States, China, and Taiwan to identify the most commonly applied indicators of quality and the most common methods of evaluating service quality in current hotel rating systems.

A British Hotel Rating System

The main hotel rating systems in the United Kingdom are those of the English Tourist Boards (ETBs), the Automobile Association (AA), and the Royal Automobile Club (RAC). The ETBs system involves cooperation of ten regional Tourism Bureaus to implement a national hotel rating system (including Scotland and Wales). The ETBs organization is responsible for verifying the accuracy of and maintaining confidence in the hotel rating system.

The hotel rating system used by the ETBs is divided into two parts: facility classification and quality grading. Quality grading is a qualitative assessment of specific equipment, or level of luxury, on a scale of one to five crowns. Then for each of those operating levels, the ETBs further indicate a quality grade of (from bottom to top) approved, commended, highly commended, or deluxe. The crown classification for the facility is independent of the assessment of its service quality. Thus, for example, a one-crown bed and breakfast (B&B) can earn a deluxe rating if its facilities and services, although limited in range, are of a particularly high standard. Grading and classification inspections are not announced in advance. The initial inspection invariably involves an inspector staying overnight as a normal guest. The inspector will not reveal his or her identity until the bill is paid the following morning. A high proportion of subsequent inspections also involve an overnight stay.

The quality assessment includes such aspects as warmth of welcome and efficiency of service as well as the standard of the furnishings, fittings, and decor. The standard of meals and their presentation is considered, as is anything that might affect guests' experience. Inspectors are carefully trained to apply the quality standards consistently and fairly.

The inspectors consider only those facilities and services that are provided, and due consideration is given to the style and nature of the establishment. Consequently, facilities such as B&Bs, farmhouses, and guesthouses are not expected to operate in the style of large city center hotels to gain a high quality rating. This means that all types of establishments, whatever their classification, can achieve a high quality grade if the facilities and services they provide, however limited in range, are of high quality. However, the quality grade does not include an assessment of value for money. The information provided by the combination of the classification and quality grade enables members of the public to determine for themselves what represents good value.

When making quality assessments, inspectors compare the standard of what is provided for each individual aspect of the operation against standards laid down by the ETBs. These standards are based on the experience of inspecting more than 11,500 establishments a year. The quality of each individual aspect is assessed as excellent, good, acceptable, or poor. The inspectors consider variations within these bands. A top assessment is given where it would be unreasonable to expect anything significantly better.

The quality grade awarded to an establishment reflects the overall achievement on the individual aspects. It is a balanced view of what is provided and, as such, cannot acknowledge individual areas of excellence. Following each grading inspection, the inspector discusses his or her findings with the proprietor or manager but does not announce the grade at that time. The assessment of the inspector is subject to further scrutiny and checks before the grade is confirmed by letter. The rating may not be used until the confirmation letter has been received. With the confirmation letter comes a copy of the written assessment form with a record of the observations made at the time of the inspection. These observations are intended to be helpful to those who wish to improve their standards or achieve a higher grade.

An American Hotel Rating System

The U.S. hotel industry observes no uniform hotel rating system, although various associations and corporations maintain their own independent rating systems. Perhaps the best-known system is the diamond-based ratings of the AAA, while the Mobil Travel Guides' star-based system is also universally recognized. (1) For this study, we examined the AAA system, which annually evaluates more than twenty-nine thousand accommodations. To account for the diversity of U.S. lodging operations, each facility is assigned to one of twelve categories, such as large-scale hotel, small-scale hotel, motel, country inn, historic site hotel, vacation home, ranch, cabin or cottage, and condominium.

Within each of these categories, a property can earn a rating of one to five diamonds. Unlike the U.K. system, room appointments and luxurious amenities are to an extent conflated with service quality. AAA explains its ratings as follows. One diamond indicates essential, no-frills accommodations meeting basic requirements of comfort, cleanliness, and hospitality. While such properties typically appeal to the budget-minded traveler, the diamond rating is not correlated in any way with room tariffs. Two diamonds indicates modest enhancements in overall physical attributes, design elements, and amenities, typically at a moderate price. These establishments appeal to travelers seeking more than basic accommodations. Three diamonds indicate multifaceted properties with a distinguished style, including marked upgrades in the quality of physical attributes, amenities, and level of comfort provided. Such establishments appeal to the traveler with more comprehensive needs. Four diamonds indicate upscale establishments with more refined and stylish accommodations. The fundamental hallmarks at this level include an extensive array of amenities combined with a high quality of hospitality, service, and attention to detail. Finally, the uncommon five-diamond rating indicates establishments with the ultimate in luxury and sophistication and accommodations that are first-class. The fundamental hallmarks at this level are meticulous service exceeding all guest expectations while maintaining an impeccable standard of excellence and offering many personalized services and amenities.

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COPYRIGHT 2007 Cornell University Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.

Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

NOTE: All illustrations and photos have been removed from this article.


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