Does Grading Standard Dimension of Hotel Rating System Predict Customer Satisfaction? Empirical Evidence from Malawi

Abstract

The purpose of this paper is to establish the relationship between grading standard as a dimension of hotel rating system and customer satisfaction. 203 hotel guests participated in the study. Survey questionnaires based on a modified performance-only instrument were used to collect data, analysed using SPSS 20.0 and AMOS 22.0. Structural Equation Modelling (SEM) was used to establish the relationships between grading standard and customer satisfaction as latent constructs of the hypothetical model. The underlying factor structure of the manifest variables in the model was established using both unidimensionality test and confirmatory factor analysis (CFA). The study concluded that grading standard is a predictor of customer satisfaction in star-rated hotels. This study recommends that hotel managers need to pay adequate attention to grading standard dimension of the rating system for it provides an array of features or attributes that the hotel may use to enhance customer satisfaction in order remain competitive and distinguish itself from the competition.

The present and future of hotel star ratings through the eyes of star rating operators

“…Thus, the first main conclusion of this paper is that there is consensus among interviewees on the need for constant change: Hotel classification systemsespecially voluntary oneswould not have survived the impact of guest ratings without adjusting to the ever-changing hotel industry landscape. Thus, quick adjustment to changing market conditions through frequent review of classification criteria and procedures has become the main survival strategy of classification systems (see also UNWTO, 2015;Sepula and Bello, 2019;Vagena and Papakostandinidis, 2020b).…”

“…Going for years without an update, many star rating systems are using outdated classification criteria, thus affecting their perceived reliability (Martin-Fuentes, 2016). This makes it necessary for hotel classification systems to be constantly upgraded regarding both infrastructure criteria and service-related criteria, thus maintaining customer trust and satisfaction (Sepula and Bello, 2019). A star rating system can be seen as a "living organism" that is obliged to adapt to the quickly changing conditions of the hotel market, especially regarding rapid developments in online marketing and distribution (Kim et al, 2019;UNWTO, 2015;Vagena and Papakostandinidis, 2020b).…”