The 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.