A Critical Evaluation of the Hotel Classification System of India

Abstract

A hotel classification system is a tool used to create a hierarchy of hotels based on service quality. However, there is a lot ofcriticism in literature against the system for allocating high ratings to hotels with poor service quality, micro managing hotels,charging high license fees for hotels that opt for classification, etc. Against the backdrop of this criticism for the classificationsystem, this study explored the perceptions of hotel managers about the system. The study also identified the reasons for alarge number of hotels not opting for the classification process inspite of several benefits claimed by the Ministry of Tourismunder the scheme. Finally, the study identified the changes hotels make to get the desired star rating. Using a multi-stagestratified sampling technique, data were collected through a structured questionnaire from 205 hotel managers of classifiedand unclassified hotels in North India using Google Docs questionnaire. The study was conducted in March 2017. The datawere analyzed using SPSS software. Descriptive statistics and factor analysis tests were used for the analysis. The resultsindicated that managers had a positive opinion about the classification process contrary to what is discussed in the literature.The study also revealed that the barriers that prevent hotels from applying for the classification process include therequirement of higher salaries, a large number of approvals, high license fees, and huge documentation. Finally, the studyrevealed that for getting the desired classification, hotels should make changes like improving the quality of décor in rooms,placing superior guest room amenities, providing superior furnishings, and recruitment of professional employees.