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Star Ratings Australia shuts down

Star Ratings Australia, Australia’s only independent accommodation rating scheme, is closing down on 30 June.

The traditional hotel star-ratings model is being forced to close its doors because of the emergence of customer online reviews which rendered its business model obsolete.

 Australian Motoring Clubs has been running the program since the 1950s, offering independent reviews to hotels across the country.

At the height of its success there were 15,000 star rated properties across Australia. Each property’s star rating was determined by more than 200 criteria.  

The prospective closure is expected to hit Tasmania’s tourism industry hard.

Wynyard’s Alexandria Bed and Breakfast owner and operator Rachel Arnold said it would have a big impact.

“Expectations come from the star ratings, so if you are at a place that’s four-and-a-half stars and up, you’re expecting luxury accommodation,” Mrs Arnold told the Burnie Advocate.

“Without a rating system which is across the board, how are customers supposed to know what they’re really going to get? 

“The star ratings regulated things – it distinguished between the businesses.” 

Mrs Arnold said tourism in the North-West was now going gang-busters.

“January and February have been the best two months for a summer period for us to date in the five years we've been operating the business.”

The Australian Tourism Industry Council (ATIC) says it will work with the accommodation sector to ensure appropriate ratings/assessment for the industry and consumers. ATIC owns the Australian Tourism Accreditation Program (ATAP).

“We will work out a way for star rated properties to seamlessly transition into ATIC’s accreditation program,” ATIC chair Evan Hall told SpiceNews.

“Good quality accommodation providers deserve to have accreditation that makes sure the customer and industry are aware of the value of their product. We will work with the accommodation providers to ensure the good operators can stand out in the crowd with an independently assured quality mark.

“We will work with the accommodation sector and Star Ratings Australia to discuss the best way forward and to assist accommodation providers.” 

by Leon Gettler, March 6th 2017