My reputation Dashboard - online reputation management
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Research on the impact of reviews on the average room rate and occupancy of hotels

Research findings from a study of online reputation dashboard provider MyReputationDashboard.com about the impact of reviews on occupancy and average room rate of hotels.

 

The reputation of a hotel is formed on eg social media, review sites, media and word of mouth. Managing the online reputation of the hotel is important for various reasons:

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  • 93% of hotel guests is influenced by reviews and the majority book a hotel with a high score
  • A hotel with high scores and positive reviews is a magnet for bookers and guests: "I ​​also want to stay in this hotel"
  • The hotel, with a high score is more attractive for new talent and investors
  • A high score motivates staff within the company - engaged and motivated employees provide better hospitality experience


Reseach shows: Average room rate increases with increase review score

Cornell University calculated on the basis of data from Travelocity that when the hotel review score increased by 1 point on a 1-5 scale, the hotel can increase its roomrate by 11.2% whilst maintaining the same occupancy and market share.

 

MyReputationDashboard.com carried out a study in which prices on booking.com at a certain date were plotted against the review score of the hotel. Hotels selected per city were with similar star rating and similar location.  The research shows that the average room rate in all cities increases with an increase in review score. Also in examining international cities like London and Paris, the same trends can be observed.

 

Some samples

 

Maastricht – based on 31 4-star hotels

 

Rotterdam – based on 9 3-star hotels

 

Amsterdam –based on 22 2-star hotels

 

Amsterdam based on 11 5-star hotels

 

Arnhem & surrounding based on 28 4-star hotels

 

The Hague based on 11 4-star hotels

 

Basically Reviews offers you a powerful tool to maximize hotel revenue

It is important for hotels to monitor the own scores compared to the average (green line). When the ADR of the hotel is significantly lower than the average in the city than the hotel may increase the roomrate while maintaining equal occupancy percentages. When the ADR is significantly higher than the average, this would mean that the occupation lags behind the average for the city. It could then experiment with lowering the ADR and thereby carefully monitoring the yield (Occupancy x ADR) to maximize room revenue.

 

Read all tips from MRD about reviews and online reputation on this site, but also the expert advice of Buzzcapture, Elephant Media, Weather and Travel Next composed of Congress Love @ First Site with the theme: It's all about Reviews now!

Tips from Tripadvisor - manage your reviews

Why is it important to respond to reviews?

  • Responding to positive and negative reviews clearly demonstrates – to both former and prospective guests – that you are interested in feedback, and that you take customer service seriously.
  • In a September 2012 survey*, 78% of respondents said that seeing a hotel management response makes them believe that the hotel cares more about its guests. Over half of survey respondents also said that seeing a management response generally makes them more likely to book (versus a comparable hotel that did not respond to travelers).

How should I respond to a negative review?

  • Respond quickly - A prompt response shows prospective guests that you take customer service seriously, and quickly adds your perspective on the situation to the original review.
  • Be courteous and professional - When replying, remember that your management response will be seen not just by the reviewer, but also by potential guests who are considering booking. In a recent PhoCusWright survey 64% of respondents said that an aggressive/defensive management response to a bad review made them less likely to book that hotel.
  • Thank the reviewer. If you don’t agree with the reviewer or feel they are being unfair, relay your side of the story in a polite and unemotional way. Demonstrate that all feedback is important to you, be it good or bad.
  • Address the specific issues:  If the review contains any specific complaint, explain what you have done to fix the issue so potential guests are reassured that the problem is resolved.
  • Highlight the positives - Highlight any positive comments the reviewer has made. You can even take the opportunity to mention related services or planned upgrades that you would like to share with potential guests.

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