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Why Hotel Reputation Management Procrastination is Hurting Your Profits

hotel reputation management procrastinatingReputation management for hotels sounds interesting, but we need more time to think about our strategy.”

We hear this far too often from hoteliers, and it is dangerous.

Travelers are making decisions based on reputation

Reputation has become a critical factor in travel buying decisions. If your hotel’s online reputation is not what it could be, you are losing sales to your competitors. Research from World Travel Market showed that 35% of social media users changed their choice hotel after browsing a social platform. Even previously loyal guests are now re-considering their options based on the opinions of other travelers shared online.

Delays hurt your sales conversion rates

Working to improve your online reputation will directly affect your sales conversion rate. PhoCusWright research showed OTA shoppers who visit positive hotel review pages in OTAs are twice as likely to convert. And according to Jennifer Davies of Expedia: “Good reviews of 4.0 or 5.0 generate more than double the conversion of a review of 1.0 – 2.9.”

Delays reduce your profits

Reputation also affects pricing. Another Expedia executive, Brian Ferguson, revealed that reviews are a particularly important factor in what hotels will be able to charge through a third-party site. “A 1-point increase in a review score [on a 1-5 scale] equates to a 9% increase in average daily rate.”

Delays cause a loss of competitive advantage

Your competitors are working on managing and improving their online reputation right now. Catching up late is expensive and rarely works as well as starting early. Building a successful online presence takes time, and so beginning the process now can give you a competitive advantage.

To get advice on how to begin your hotel’s program, you should request a demo from one of ReviewPro’s reputation management advisors.