As a service-oriented business, the hotel and restaurant industry, heavily rely on reviews and recommendations to attract new clients. New players, particularly, need positive reviews and word of mouth so as to attract potential clients.
Online reviews of past clients therefore, are very critical when it comes to attracting new clientele. These reviews are usually posted on social media pages of the hotel company itself, third-party review websites, or travel websites that aggregate information on hotel and travel deals.
A Study published in the Online Journal of Information Management has revealed that the social media sphere, as well as online reviews have somehow revolutionized the hotel industry.
“Social Media and user-generated reviews are transforming competition in the hospitality industry. On-line ratings of user-generated reviews on TripAdvisor have a positive effect on hotel revenues that is outweighed by a negative effect on gross profit margins. Hotels placed outside popular destinations get more advantages from their online visibility on their gross and net profitability than hotels placed in popular destinations.”
Read the whole study here.
Hotel Online Reputation
Berlin-Based Customer Alliance explained that a hotel’s online reputation largely impacts how travelers and potential customers view the establishment. Reputation Management For Hotels
“In the competitive environment of the hospitality industry, online reputation directly affects sales volume. Effective hotel reputation management helps you secure a competitive advantage. Conversely, a poor online reputation could potentially lead to serious losses. Disregarding negative comments and reviews that appear on page one of Google will cost much more in lost revenue than putting sufficient resources into effective hotel reputation management. In many cases, business owners spend years building up a positive image of their brand and are surprised by how quickly their hard-won reputation takes a hit. The key to success is being proactive. As we outlined in a recent whitepaper on hotel revenue management, you can take advantage of the possibilities arising from the explosion of review portals.”
Read the whole article here.
Hospitality.net meanwhile published an opinion piece on Why Online Reviews Are Important in the Hotel and Restaurant Industry. It insisted that managers and business owners should indeed pay attention to these reviews because it can directly affect their sales. Restaurant reputation management
“With dozens of review sites like TripAdvisor and Online Travel Agencies (OTAs) such as Expedia, vacationers are placing their trust in hotel reviews while booking accommodation. They are relying on them rather than advertising and marketing efforts from your side. The fact that a staggering 97.7% consumers read online reviews from other travelers brings attention to the surge of OTAs and review sites.”
Check out the whole write-up here.
Online reputation needs to be carefully managed in order to attract potential clients, which are very important in growing a business.