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article by Mon “Hotel” New hotel classification in France

A reform of the hotel classification has been on the news since more than a year: Indeed until now there were no five stars hotels in France, but since the beginning of 2009 the change is on: Hotels that volunteer will be rated from one to five stars for a minimum of three years and a maximum of five years. The evaluation will be done, at the expense of the volunteers. Moreover the ratings will have to be approved by the French government

The point of this new classification system is simply to mix different point of views related to norms and understand and respond better to the clients’ needs by responding better to the comfort criteria that are a “must have” and other criteria that can please the clients.

The move was of course orchestrated by the French government whose goal is to place tourism “at the heart of the economical growth “ by defining a new political plan concerning tourism: “destination France 2020 “the matter was discussed this summer at the “Assises nationale du tourisme” that took place this summer.

The challenge is to support tourism which is the first industry of France: With the globalisation and the client’s changing needs France has to be competitive with other destinations concerning the clients’ behaviours and needs. (Not having a five star rating is a serious handicap considering that the client doesn’t always know the fact that France’s highest class of hotel is “four star luxe”).

Objectively what is going to be different about this new classification?
Firstly it is interesting to know that it is the first time in twenty two years that the classification grid is being changed: And indeed clients needs have changed a lot in twenty two years!.

The new classification is bringing major changes to satisfy the clients: - no star hotels will disappear: The hotels that volunteer will all be classified one star consequently a fifth star has been added to replace the “four star luxe” appellation. This is useful to hotel owners; it will allow French hotels to be competitive compared to hotel in competing countries. - The new classification system promises to be more exigent : let’s do a little comparison with the old classification

Old classification New classification For a first star rating 30 criteria were needed First star rating:61 criteria needed For a two star rating 30 criteria were needed two star rating:68 criteria needed For a three star rating 30 criteria were needed three star rating:75 criteria needed For a four star rating 33 criteria were needed Four star rating:94 criteria needed For a four star luxe rating 33 criteria were needed Five star rating:124 criteria needed

The classification will also comprise of optional points: Every hotels that volunteer to get reclassified will have the chance to have optional points, these optional criteria will give establishments the chance to differentiate themselves from their competitors and to show the client the diversity of French hostelry (These optional criteria will not be imposed, hotel managers will choose them). Let’s take a moment to summarise and understand this new classification: To be rated hotels will have to respond to the following exigencies: - they will have to be compliant to a number of obligatory criteria (See above page) - they will have to be compliant to a number of optional criteria

These criteria will give hotels points, and it will be the points that will be taken into account for the ratings:

• To be rated “one star”, 141 obligatory points will be needed with an addition of 24 personal, optional points to the hotel.
• To be rated “two star”, 161 obligatory points will be needed with an addition of 24 personal, optional points to the hotel.
• To be rated “three star”, 177 obligatory points will be needed with an addition of 24 personal, optional points to the hotel.
• To be rated “four star”, 226 obligatory points will be needed with an addition of 24 personal, optional points to the hotel.
• To be rated “five star”,298 obligatory points will be needed with an addition of 24 personal, optional points to the hotel.

Note: hotels will be given a 5% flexibility margin: if they can not comply to all the points needed to be rated in one category they can make up for these criteria by adding optional points ,but optional points and obligatory points do not have the same value: One obligatory point is equal to three optional points. The heart of this new classification is the client: While the previous classification paid particular attention to surfaces and equipments the new classification pays particular attention to services proposed to the client (in addition to paying attention to the equipment and surfaces.) In addition to that the client will be informed about the new classification and can be solicited to make suggestions about it. Note: hotels will be given a 5% flexibility margin: if they can not comply to all the points needed to be rated in one category they can make up for these criteria by adding optional points ,but optional points and obligatory points do not have the same value: One obligatory point is equal to three optional points. The heart of this new classification is the client: While the previous classification paid particular attention to surfaces and equipments the new classification pays particular attention to services proposed to the client (in addition to paying attention to the equipment and surfaces.) In addition to that the client will be informed about the new classification and can be solicited to make suggestions about it.

In terms of competitive positioning a change was inevitable: The hotels of the world’s first tourism destination could no longer afford to avoid comparisons with their international competitors! Indeed the creation or more appropriately the adoption of the fifth star will change this fact.

What exactly does the fifth star represent? It will represent the best of French hostelry, the fifth star will be the distinction of excellence and it will of course offer a better readability to international clients. What exactly does the fifth star represent? It will represent the best of French hostelry, the fifth star will be the distinction of excellence and it will of course offer a better readability to international clients.

A new classification procedure: If the new classification is supposed to make French hotels compliant to international standards the attributions of stars would also be made according to the techniques used by our international competitors. The evaluation will be done by specialised audit firms which will visit hotels regularly and will be more or less exigent (depending on the rating of the hotel), moreover surprise visit will be made to hotels rated four stars and above

Every five years the classification will be subjected to changes (according to the progress or regression of the establishments).
The “Agence de developpement touristique” or Tourism development agency in English will have to support the procedure and animate it. Transition phase:
Given the time that hotels will need to adopt the classification the new and the old classification will co exist during three years strating from the publication of the “Loi Tourisme” or tourism law (which I will present later in this article). After three years the old classification will cease to exist.

A point on investments: As I said earlier the point of this classification is mostly to modernize French Hotels and it will ssdetermine new economical parameters on which establishments will build their new economical system, and to build a new economical system one needs funds. Two organisms will help hotels to find funds:
-OSEO
-caisse des depots
The Loi Tourisme
This law will modernize the regulations for professionals working in the travel business to allow them to be more competitive in the international sector. This law’s aim is to make easy the sales of tickets for travel agencies: -this law will suppress the four steps that one had to pass to have authorisation to sell trips – Every operator wanting to sale trip formulas will have to declare his activity to a national register managed by the future “Agence de developpement Touristique”. The law will be according to reports constituted of thirteen articles.

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