News for the Hospitality Executive |
The dilemma of going from 3 Diamonds to 2 Diamonds |
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by Harry Nobles November 18, 2010 When is the right time to worry about your rating? I believe the best time to begin to worry, or at least to be concerned over the potential loss of a Diamond is when you first earn the rating. It is usually easier to prevent the loss of a Diamond or the loss of your AAA approval completely than to earn it back. The first problem you encounter is that the rating organization is often reluctant to grant your request for another inspection; there are several valid reasons for this. One reason is that both AAA and Forbes have firm deadlines that must be met. Another is that the AAA Tourism Editor or inspector is often unable to accept the fact that an operator who has not made the necessary improvements to retain the rating in a year since the last inspection, is now going to make the improvements in a few weeks. By the way, a downgrade or disapproval rarely happens without a clear and unambiguous advanced written notice. How long might this impact last? At the minimum, one year from the publication dates of the AAA TourBook for your area. More than likely the impact will last up to two years and for some potential customers it might last even longer. Some of these potential customers may be won over by your local competition that has 3 diamonds and you may never re-capture them because they still think of you as a 2 diamond property. What is the potential impact to you? Reduced traffic, lower occupancy and lower rates leaving you with a lower REVPAR. It is true that with AAA’s much faster reaction time in electronically updating the rating online, the final impact might be somewhat lessened. The bottom, line, however, is that any news of a downgrade, be it in the TourBook, online, or the blank space on the lobby wall where the AAA 3 Diamond Plaque used to be is negative. It is also avoidable; why take the risk? So why else might you be concerned? There are several reasons. Competition is one. There’s less disposable income for travelers and more properties trying to get a piece of the lodging travel pie. Another reason is that travelers do give weight to these ratings. Be all that you can be and generate the highest score that your infrastructure and personnel can support – raise your property to the highest possible level of guest awareness. And last but not least concentrate on the small things that travelers consider important. Consider the details that inspectors search out – these ratings systems reflect guests’ tastes and requirements. Surprise!– don’t disappoint! Taking proactive measures can be less expensive than playing catch-up after the fact. Your preventive action may include incremental FF&E upgrades, shopping around for the best price, and addressing problems before they become even more serious. Other measures should definitely include frank and open communication with the inspector about your plans and priorities. The inspector is not an advisor or consultant to give you specific advice, but he or she can certainly answer some basic questions, and possibly point you in the right direction. The AAA HQ Staff and (Tourism Editors) Inspectors are available via all the modern communication options, phone, letter, email, face to face. During my tenure, the smoke signals and heliographs of the time were quite adequate; now I would suggest email. Also during my tenure at AAA and since I have found the Tourism Editors to be knowledgeable, professional, and willing to discuss rating matters with operators. Finally, I suggest you stay as involved with the rating issues and knowledgeable of AAA ratings criteria as you do all the other details of your operation, and keep up with the ever-changing rating requirements, policy, and procedures. So, I urge you to talk to your inspector, talk to me, talk to your guests, talk to someone who can give you honest and accurate answers to your questions. There is another equally valid reason to protect your 3 Diamond rating. If you are currently rated at that level, your property is already well positioned to appeal to a majority of the 50+ million AAA members. According to the latest official statistics available, 3-Diamond rated lodgings account for 51.7% of all AAA lodging ratings. The 3 Diamond is the one most popular with travelers. Approximately 80% of AAA member room nights are at “mid range” lodgings. Mid range means 2 and 3 Diamond lodgings, of which 3 Diamond is the overwhelming majority. Please remember that only you can make the final decisions. That is as it should be because nobody knows your property as well as you; just get all the accurate information you can so you can make an informed decision. My
best wishes to you during this difficult time.
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