The Influence of TripAdvisor Consumer-Generated Travel Reviews on Hotel Performance Pasi Tuominen University of Hertfordshire Business School Working Paper (2011) University of Hertfordshire Business School Working Papers are available for download from https://uhra.herts.ac.uk/dspace/handle/2299/5549 and also from the British Library: www.mbsportal.bl.uk The Working Paper Series is intended for rapid dissemination of research results, work-inprogress, and innovative teaching methods, at the pre-publication stage. Comments are welcomed and should be addressed to the individual author(s). It should be noted that papers in this series are often provisional and comments and/or citations should take account of this. Copyright and …show more content…
In an example, Tripadvisor has an estimated effect worth 500m£ per annum on corporate travel spend (Caterer, 2009). Several studies explore the issue of online reviews, or electronic word-of-mouth, focusing mainly on matters such as motivations of, and social dynamics between, users and contributors of review sites. Previous studies, however, do not investigate online reviews’ impact on consumer decision making, i.e., to what extent exposure to online reviews affects consumers’ attitudes and purchase decisions (Chevalier & Mayzlin, 2006; Sen & Lerman, 2007). This study will broaden the exploration on the effects of online hotel reviews on consumer choice hence the profitability of the hotels, keeping the consideration set model of consumer choice (Roberts & Lattin, 1991) as a theoretical point of departure. According to Compete inc. (2009) the share of referrals from social networks to hotel websites is growing rapidly (up 151% since February 2008). A similar trend (with respect to social networks’ share of referrals) exists for many other segments within and outside of the online travel industry. The more interesting finding is that the conversion rate of the referrals from social networks to hotel websites exhibits a similar growth trend, growing 98% year over year. Taken together, these findings indicate that social networks are increasingly a source of in-market traffic for hoteliers. (Compete Inc. 2009) The information society
Such a bold position requires a new approach to marketing. The authors present a thesis of the Influence Mix, which introduces that there are three influences on consumer decision-making — the individual’s prior preferences, beliefs and experiences (P), other people and information services in the form of reviews and
How will a consumer decide whether to purchase a good? When a consumer purchases a good, what does this reveal?
Not only are reviews being used to damage a reputation but also used as black mail. An investigation by the Times had implied that 80% of hoteliers and bed and breakfast owners had complained to TripAdvisor that guests had been using the online review system in an intimidating and black mail way. Guests would demand upgrades or discounts if the business in question did not comply then a bad review would be posted on TripAdvisor. Bha.org.uk,(2011)
Consumers are usually value opinions expressed directly to them. Marketers should spend millions of dollars on advertising campaigns, as simples and free products are not as powerful as word-of-mouth, which is the primary factor behind 20 to 50 percent of all purchasing decisions, to make up customers’ mind. Actually, word-of-mouth could cut noise quickly and effectively.
Social networking can benefit businesses greatly. These sites allow businesses to advertise and market services to a large audience, and since a profile is free to set up, the advertisement is
Ogut, H. and B. K. O. Tas. (2011). “The influence of internet customer reviews on the online sales and prices in hotel industry,” The Services Industries Journal. Vol. 32(2): 197-214.
While negative comments can decrease the number of guests visiting an establishment, they can indirectly help in improving hotel’s services and even reputation. This depends on the hotel’s management attitude and approach towards negative comments. Min et al (2014) note that hotels that insert empathy and concern in response to negative comments improved their ratings among existing and potential customer. Concern by a hotel’s management is shown by the time frame used to respond to a negative comment and this can build or break its reputation. The authors further note that the difference between an online complaint and an in-person complaint is the timing, while an in-person is likely to get an immediate response as standard procedure in most hotels, an online review may take a while, hence, making prompt response valuable in improving a guest’s perception of the hotel (Min et al, 2014).
Cornell Hospitality Report, a well-respected publication in the hotel industry wrote the following in a 2010 report; We wanted to explore the impact of customer reviews on hotel bookings. To explore this question, we asked our respondents to rate their likelihood of choosing a hotel if they see either a negative or a positive comment about the hotel within their category of interest. We found a surprisingly similar trend for all categories of hotels and for both male and female respondents. In short, men and women are equally likely to stay away from a hotel with negative comments and equally likely to choose a hotel if they see positive comments (McCarthy, 2010). There is a strong indication that hoteliers who want to be successful in the new competitive landscape can disregard online reviews at their own peril. According to the paper, a 2010 study by Mckinsey and Co. claimed that “word of mouth is the primary factor behind twenty to fifty percent of all purchasing decisions” and that “marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising in categories as diverse as skincare and mobile phones.” Considering the previously presented evidence, I believe any hotel that plans to be successful should be actively engaged in managing online reviews. In addition to this, they should focus strongly on top review websites such as TripAdvisor and Google to ensure they are involved in actively managing their online reputation.
It is clear based on the study, that some hotels take online review seriously by responding to customers’ feeback. A study done by PhoCusWright and TripAdvisor indicates that 62% of users agree that seeing a hotel management responses on reviews makes them more likely to book the hotel (TripAdvisor, 2013). While some hotels take advantage of this finding to attract more guests, some hotels to do not and this works to their disadvantage. The issue is not just about responding, but the manner in which the responses are given. Findings suggest that 70% guests prefer
Google Analytics provides statistics and analytical tools for monitoring web traffic, attribution, conversion metrics, and many other data points to enhance your marketing efforts. When analyzing your data, you may find that the majority of referral traffic actually comes from Facebook. The best way to take advantage of this data is to create a marketing plan that targets these users, since they might be in a different part of the funnel than a user searching for “Hotels in Miami.” Start creating audience lists that you can use for Remarketing List for Search Ads (RLSA) and display network remarketing from within Google AdWords. Here’s a few to get you started.
The growth of technology has overhauled the tourism and hospitality industry. Over the past 5 years, the hospitality industry has drastically taken a technology-driven transformation (Bickerton 2015). The transformation has seen changes in the way consumers obtain information and mainly how they book for services. As a result, there has been a growth and importance of Word of Mouth and electronic word of mouth. For an industry that relies on image and positive perception, WoM and Ewom are something that must be considered and taken very seriously. Club Med is in the business of selling intangible services to consumers, however, tangible services such as the appearance of their hotel have an impact on whether a customer would choose to book with them or not. These variables are all focus around Word of Mouth and Electronic word of mouth (Racherla 2008).
This report was requested by Ms. Sophie Kinloch, the lecturer of Rooms Division Service Standards. The purpose of this paper is to discuss the values of Social Medias and national rating organisations by a hotel and consumer point of views.
As I just started as a General Manager at the hotel “Pelusos”, I reviewed the reports of our recent customers and found out that we do have millennial clients as well as a business market. However, they are not becoming returning clients because they do not feel we meet their technological needs. As we are aware thanks to social media, there is a tremendous necessity for guests to be connected all the time. This is clearly understood by majority of hotels because as the American Hotel and Lodging Associations reported, 87 percent of hotels are using social media in their marketing effort. Hence, if the hotel social media and advertisement are not been updated constantly, we are wasting a good resource for marketing and selling. Also, as Elizabeth Smith mentioned on his article, the guests experience starts long before a traveler arrives. It begins when
Primarily the company’s strengths include an overall positive brand image within their target market, user-friendly content and believable online reviews. Their strengths have brought many opportunities to the table for the company included a growth in demand as well as a growth in equity and an expanded target market via mergers. However, the main weakness of TripAdvisor who faces threats due to increased competition is the decision of company to not utilize a third party to verify the identity of its users means that the risk or fake
There are several desirable alternatives. Today‟s car buyer, for example, has an abundance of choices among similar attractive models. In fact, research indicates that those consumers who experience greater difficulty in making purchase decisions, or who consider a wider range of store and brand options, are more likely to experience greater magnitudes of postpurchase dissonance.