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Are stars a good indicator of hotel quality? Assymetric information and regulatory heterogeneity in Spain

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  • Núñez-Serrano, Juan A.
  • Turrión, Jaime
  • Velázquez, Francisco J.

Abstract

This paper proposes a methodology for continuous monitoring of the hotel sector based on “objective” and demand criteria. The method applies Multiple Correspondence Analysis (MCA) to hotel facilities and services. Using that indicator the impact of differing regional regulations relating to hotel classifications is duly analysed, based on information from The Official Guide to Hotels in Spain (OGHS). The results show that even though official stars classification might be considered a good indicator of quality, there also is significant overlapping with regard to levels of quality between adjacent official categories. It is suggested that the very coexistence of 17 different regulations is one of the reasons for this.

Suggested Citation

  • Núñez-Serrano, Juan A. & Turrión, Jaime & Velázquez, Francisco J., 2014. "Are stars a good indicator of hotel quality? Assymetric information and regulatory heterogeneity in Spain," Tourism Management, Elsevier, vol. 42(C), pages 77-87.
    • Handle: RePEc:eee:touman:v:42:y:2014:i:c:p:77-87
    DOI: 10.1016/j.tourman.2013.10.004
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    Cited by:

    1. Manuel Rodríguez-Díaz & Rosa Rodríguez-Díaz & Ana Cristina Rodríguez-Voltes & Crina Isabel Rodríguez-Voltes, 2018. "Analysing the Relationship between Price and Online Reputation by Lodging Category," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    2. Walheer, Barnabé & Zhang, Linjia, 2018. "Profit Luenberger and Malmquist-Luenberger indexes for multi-activity decision making units: the case of the star-rated hotel industry in China," RIEI Working Papers 2018-06, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    3. Ayat Zaki Ahmed & Manuel Rodríguez-Díaz, 2020. "Analyzing the Online Reputation and Positioning of Airlines," Sustainability, MDPI, vol. 12(3), pages 1-27, February.
    4. Tiwari, Veenus & Mishra, Abhishek, 2023. "The effect of a hotel's star-rating-based expectations of safety from the pandemic on during-stay experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    5. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne & Linjia Zhang, 2022. "Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application," Annals of Operations Research, Springer, vol. 315(1), pages 221-250, August.
    6. María D. Illescas-Manzano & Sergio Martínez-Puertas & Gema M. Marín-Carrillo & María B. Marín-Carrillo, 2023. "Dynamics of agglomeration and competition in the hotel industry: A geographically weighted regression analysis based on an analytical hierarchy process and geographic information systems (GIS) data," Oeconomia Copernicana, Institute of Economic Research, vol. 14(1), pages 213-252, March.
    7. Manuel Rodríguez-Díaz & Crina Isabel Rodríguez-Voltes & Ana Cristina Rodríguez-Voltes, 2019. "Determining the Relationships between Price and Online Reputation in Lodgings," Administrative Sciences, MDPI, vol. 9(3), pages 1-27, July.
    8. Manuel Rodríguez-Díaz & Rosa Rodríguez-Díaz & Ana Cristina Rodríguez-Voltes & Crina Isabel Rodríguez-Voltes, 2017. "A Model of Market Positioning of Destinations Based on Online Customer Reviews of Lodgings," Sustainability, MDPI, vol. 10(1), pages 1-20, December.

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    More about this item

    Keywords

    Quality; Hotel industry; Spain; Regulated market; Multiple correspondence analysis;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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