Death of ‘Official’ Star Ratings in Australia

logo - star ratings australiaThe digital revolution has claimed another victim. Star Ratings Australia today announced its subscriber-pays business model is no longer viable and the scheme will close on June 30, 2017.

“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,”  said Michael Reed, CEO of Australian Motoring Services.

In other words, hotels, motels and caravan parks don’t see why they should have to pay for an official review when every second consumers is rating their properties in real time on the TripAdvisor and the leading online travel agents.

Mr Reed said Star Ratings Australia was founded in the 1950s by state motoring organisations and had 15,000 accommodation industry subscribers at its peak.

There are now just under 4,000 licensees and you’d have to believe the response for next financial was poor and a major reason this decision was made.

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3 thoughts on “Death of ‘Official’ Star Ratings in Australia”

  1. It’ll be interesting to see if any online players will look to take over this mantle of officially rating properties. Whoever does, will clearly need to incorporate verified reviews alongside official property and service audits in the criteria.

    AAA clearly still own the copyright to ‘star’ ratings which has great brand recognition, and I imagine they will want to sell this copyright to the highest bidder. Just unclear as to who can make it work – if it’s an Australian-only copyright and all the big players probably don’t need it.

  2. Over the past few years the accommodation industry have formed the view that Star rating accreditation is “old world” and they don’t see why they should pay for a hotel inspectors to review, when consumers rate in real time on TripAdvisor and OTA’s.

    The massive growth in online travel-related content has changed consumer behaviour and the vast array of information available online. Consumers now visit a dozen travel-related sites before making a reservation.

    There are now many different objective filters consumers can use in a search and booking process. After considering brand, guest reviews are now the primary factor in determining a hotel’s reputation and final selection and booking.

    For good or for bad, the Star Rating system has gone the same way as physical hotel metal keys and elevator attendants. Any efforts to recreate a star rating system would be commercially driven not by consumers or industry.

  3. In order to be a credible scheme, it must be compulsory in terms of submitting to rating. That means government intervention and appropriate funding – unlikely to rank high enough methinks…

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