Choosing between a hotel and a hostel: Traveller guide

Hotel stars are an important indicator for many tourists, as well as business travellers and those organising various events in hotel spaces or renting conference rooms.

Both hoteliers and hotel guests should understand what the individual stars represent. It’s also worth noting that the star ratings may not mean the same thing in every region of the world. Understanding the significance of hotel stars can also play a crucial role in boosting direct bookings and improving direct booking performance through a well-crafted direct booking strategy.

What do hotel stars mean?

Hotel stars are a system used to assess the quality and standards of services offered by hotels. In most countries, this system helps categorise hotels, allowing guests to quickly and easily know what to expect from a property. Although details can vary depending on the country and the rating organisation, generally accepted criteria include room amenities, service availability, comfort, cleanliness, service quality, and additional facilities. Highlighting these aspects on your hotel website can enhance guest loyalty and encourage direct bookings.

Is it worth striving for more stars?

Should hoteliers strive to earn more stars? In principle, yes, but there are several factors to consider, such as business goals, target guest groups and their expectations, the costs associated with achieving and maintaining a specific number of stars, and the value of alternative quality rating methods. For some guests, reviews from past visitors might be more important than whether a hotel has three or four stars.

Luxury hotels in exclusive locations cannot afford to drop below a certain level of quality, but in some cases, an additional star doesn’t guarantee increased occupancy. Sometimes, it’s more profitable to improve customer service, booking system efficiency, or marketing efforts—especially when these efforts are focused on guest retention and personalised guest experiences. The decision to pursue a specific star rating should always be preceded by a detailed analysis of the hotel’s situation and its potential impact on direct booking performance.

• Achieving and maintaining a high number of stars can be costly. This requires investments in infrastructure, staff, and services, which may not be feasible for some hotels.
• In the era of online reservations, reviews on platforms like TripAdvisor may hold more weight for potential guests than traditional stars. Many people rely more on other users' opinions than on an unfamiliar organisation that assigns stars.
• Striving for a particular star rating can limit a hotel’s flexibility in offering unique services or adapting to changing market needs. However, focusing on direct bookings and a robust direct booking strategy can help balance these challenges.

It’s essential to understand that guests are often attracted by unique, niche experiences, excellent locations, and a good value-for-money ratio. Star ratings don’t always reflect this. However, this doesn’t mean disregarding star ratings altogether; it’s important to recognise that stars are just one of many factors that position a hotel in the market. Implementing a personalised guest experience can significantly enhance guest loyalty and guest retention.

How do stars help?

Stars are a universally recognised indicator of quality. They help build trust among potential guests, who can be confident in the standard of services and facilities. Stars also serve as an effective marketing tool. Four-star (or higher) hotels can advertise their class, which can attract guests seeking a particular standard. Having stars indicates that a hotel meets specific quality standards, which can help in managing and maintaining a high level of service—an important element in boosting direct bookings.

Stars also aid in market segmentation, allowing a hotel to position itself better in a specific niche and attract the right guests. A hotel with fewer stars isn’t necessarily in a worse situation—if the hotel aims to attract guests who prioritise location and attractive pricing over luxurious rooms and additional features, fewer stars can even work in its favour.

The important thing is that the hotel’s offering aligns with the expectations signalled by its star rating, which can be effectively communicated on a hotel website to enhance direct booking performance.

Hotel stars and the actual hotel standard

It’s worth noting that the star system can differ depending on the country and the rating organisation. For instance, the criteria in Europe may differ from those in the United States or Asia. Additionally, various organisations, such as the AA (Automobile Association) in the UK or the Michelin Guide for restaurants, assign stars. Making this information available on your hotel website can contribute to a direct booking strategy that highlights your property’s strengths.

What is considered when assigning hotel stars?

Stars primarily indicate hotel standards based on room and bathroom amenities, additional features, and available services. Most hotel guests may not be fully aware of the requirements a hotel must meet to receive three, four, or five stars, but they intuitively know that 3*** is a decent hotel with limited amenities, while 5***** offers a different level of room, overall facility, service quality, and additional attractions. Clearly communicating these standards on your hotel website can help to boost direct bookings.

Here are the basic requirements for each star level:

• 1-star hotel:
• Simple room amenities, clean and tidy.
• Private bathroom in the room or shared bathroom in the hallway.
• Modest furnishings: a bed, wardrobe, separate sink, towels, and soap.
• Daily room cleaning is provided, and the reception is available during specific hours.
• 2-star hotel:
• Better room amenities than in a 1-star hotel, with additional storage space.
• Private bathroom is standard.
• Additional amenities like a TV, phone, work area, and more bathroom toiletries.
• Reception is available for most of the day, breakfast is often offered, and internet access is usually available.
• 3-star hotel:
• Comfortable and well-furnished rooms with tasteful décor.
• Private bathroom with better amenities (e.g., hairdryer, additional toiletries).
• Amenities include air conditioning, minibar, coffee/tea-making facilities, and a safe.
• 24-hour reception, concierge services, an on-site restaurant, and sometimes a fitness centre.
• 4-star hotel:
• Very comfortable, spacious room with high-quality furnishings and modern décor.
• Luxuriously equipped private bathroom (e.g., bathrobes, slippers, high-quality toiletries).
• Room amenities include a flat-screen TV, advanced air conditioning system, room service, and reliable Wi-Fi.
• 24-hour reception, concierge services, full-menu restaurant, bar, laundry service, professional business centre, spa, and/or pool.
• 5-star hotel:
• Extremely luxurious, spacious room with high-end furniture and visually appealing, modern design.
• Luxuriously equipped private bathroom, often with separate shower and bathtub, exclusive toiletries.
• Entertainment systems, individually controlled air conditioning, coffee machine, and well-stocked minibar.
• Top-tier service standards, 24-hour reception, concierge services, multiple restaurants and bars, catering, exclusive spa, gym, pool, event organisation services.

Should you consider hotel stars when choosing a hotel?

Stars offer a general measure of hotel quality and standards. More stars usually mean higher comfort, better amenities, and more extensive services. Hotels with more stars must meet certain standards, providing greater confidence in service quality and safety.

However, star standards may vary between countries, so a 4-star hotel in one country may offer a different level of service than a 4-star hotel in another country.

Therefore, it’s wise to consider hotel stars as one of several criteria when choosing a hotel, rather than the only factor. It’s always good to check guest reviews, compare prices, location, and available services on a hotel website. These elements are essential in creating a personalised guest experience that fosters guest loyalty and guest retention while driving direct bookings.