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Hotel Online Reputation Research, Statistics, and Quotes

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You may know how important reputation management for hotels is, but gaining internal buy-in is easier with supporting research demonstrating its importance. Here are some of the most relevant facts and statistics about reputation and online word of mouth – and how that affects consumer buying decisions today.

[Updated November 23, 2012]

Role of reviews and reputation on buying process

  • A one-point increase in a hotel’s average user rating on a 5-point scale (eg, from 3.8 to 4.8) makes potential customers 13.5% more likely to book that hotel. (Cornell University’s Center for Hospitality Research, November 2012)
  • More than one third of consumers will not book a hotel room without reading reviews first. (LateRooms, November 2012)
  • 90% of travelers avoid booking hotels labeled as “dirty” in online reviews. (LateRooms, November 2012)
  • 53% of TripAdvisor users say they won’t book a hotel if it has zero reviews. (PhoCusWright, September 2012)
  • 87% of TripAdvisor users feel more confident in their decision when they read the reviews and 98% say they find them “accurate of the actual experience.” (PhoCusWright, September 2012)
  • An appropriate response to reviews from hotel management is more likely to make TripAdvisors book (57%), improves their overall impression of the hotel (84%) and makes them feel the hotel cares (78%). (PhoCusWright, September 2012)
  • “Travelers spend an enormous amount of time researching hotels online. On average, hotel consumers made twelve visits to an OTA’s website, requested 7.5 pages per visit, and spent almost five minutes on each page before booking.” (Cornell University research, April 2011)
  • A negative review or comment on the Twitter, Facebook or Youtube Web sites can lose companies as many as 30 customers (Convergys Corp)
  • 92% of internet users read product reviews and 89% of people say that reviews influence their purchasing decision. (e-tailing group)
  • 90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. (Econsultancy, July 2009)
  • 81% of respondents said they’d received advice from friends and followers relating to a product purchase through a social site; 74% of those who received such advice found it to be influential in their decision. (Click Z, January 2010)
  • 64% said they use social media to make their travel plans and within the 25-34 year old participant group, the number is even higher; 76%look to popular social media sites to plan their next getaway. (Sheraton Survey, November 2010)
  • 30% of travelers who use social networks report soliciting trip-planning advice from their networks. (source: PhoCusWright as reported by TravelWeekly.)
  • 75% of people don’t believe that companies tell the truth in advertisements. (Yankelovich)
  • 85% of executives use social media during a purchase decision (Forrester research)
  • When asked what sources “influence your decision to use or not use a particular company, brand or product”  71% claim reviews from family members or friends exert a “great deal” or “fair amount” of influence. (Harris Interactive, June 2010)
  • 53% of people on Twitter recommend companies and/or products in their Tweets, with 48% of them delivering on their intention to buy the product. (ROI Research for Performance, June 2010)
  • The average consumer mentions specific brands over 90 times per week in conversations with friends, family, and co-workers. (Keller Fay, WOMMA, 2010)

Role of reviews and reputation on sales and revenue

  • A 1-point increase in a hotel’s 100-point ReviewPro Global Review IndexTM leads up to a 0.89% increase in price (ADR), a 0.54% increase in occupancy, and a 1.42% increase in Revenue per Available Room (RevPAR). (Cornell University’s Center for Hospitality Research, November 2012)
  • Inbound marketing costs 64% less per lead than traditional, outbound marketing (HubSpot, 2011)
  • OTA shoppers who visit hotel review pages in OTAs are twice as likely to convert. (Source: PhoCusWright as reported by TravelWeekly.)
  • “On Expedia.com, good reviews of 4.0 or 5.0 generate more than double the conversion of a review of 1.0 – 2.9,” Jennifer Davies, Expedia (hotelmarketing.com)
  • 67% of shoppers spend more online after recommendations from online community of friends. (Internet Retailer, September 2009)
  • Friends and family are the leading source of hotel recommendations among travelers that book directly (WIHP, May 2011)
  • Consumers were willing to pay between 38% more for a 5-star rated hotel than for a 4-star rated hotel. (comScore/Kelsey, October 2007)
  • 35% of social media users changed their hotel after browsing a social platform (source: World Travel Market, November 2010, reported by Tnooz)
  • 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 equates to a 9% increase in average daily rate.” – Brian Ferguson, VP of Supply Strategy and Analytics at Expedia (as reported by HotelsNewsNow.com)

Overall usage of online reviews

  • 70% of consumers would be prompted to leave a positive review if hotel staff were friendly and helpful. (LateRooms, November 2012)
  • An analysis of over 90 million reviews across more than 65 OTAs and review sites showed guest feedback is mostly positive. 60% of comments were positive, 28% were neutral, and just 12% were negative. (ReviewPro research, July 2011)
  • 90% of consumers write reviews to help others make better buying decisions, and more than 70% want to help companies improve the products they build and carry. (Bazaarvoice / Keller Fay Group)
  • 2 out of every 3 online traveler reviews are posted to an OTA. (PhoCusWright 2011)
  • TripAdvisor reviews are viewed 3 times more often on partner websites than on TripAdvisor.com (Tnooz, June 2011)
  • 69% of online shoppers said they trusted the internet for advice, versus 43% for magazines and 35% for TV (Yahoo, May 2011)
  • 78% of internet users conduct product research before making a purchase (Pew Internet, May 2010)
  • Consumer reviews are significantly more trusted — nearly 12 times more –than descriptions that come from manufacturers.  (eMarketer, February 2010)
  • 83% of all holiday shoppers are influenced by customer reviews. (ChannelAdvisor “Consumer Shopping Habits Survey”, August 2010)

Role of social media networks and publishing

  • 1 out of every 8 minutes online is spent on Facebook (Comscore, February 2011)
  • The average person spends 66% more time on social sites than a year ago, almost 6 hours vs. 3 hours, 31 minutes last year. (Nielsen)
  • 96% of online Americans use Facebook (Bank Of America Merrill Lynch, May 2011)
  • 55% of Facebook users use the site to get travel advice (Bank Of America Merrill Lynch, May 2011)
  • LinkedIn generates the most conversions for B2B companies, Facebook generates most conversions for B2C companies (HubSpot, 2011)
  • 64% of Facebook users have become fans of at least one company (ExactTarget, 2011)
  • Companies that blog get 97% more inbound links and 55% more website visitors (HubSpot, 2010)
  • Companies that blog generate 88% more inbound leads than those who do not blog (HubSpot, 2010)
  • 51% of Facebook fans are more likely to buy from the brands they fan (Imoderate Research Technologies, 2010)
  • 79% of Twitter followers are more likely recommend the brands they follow (Imoderate Research Technologies, 2010)

Quotes about ReviewPro

  • “The online reputation of each of our brands is a key success indicator for us. Online reviews not only give us insights into our daily operations, they also directly influence our revenue and profitability. ReviewPro enables us to manage our online reputation both on a brand basis as well as on an individual hotel basis to a level of detail that was not previously possible.” – Luis del Olmo, Executive Vice President and Chief Marketing Officer of Sol Meliá
  • “ReviewPro is an invaluable product that enables us to rapidly respond to issues that previously we would not have even known about.” – Joi Chuku, Marketing Manager, The Landmark London
  • “ReviewPro is like a quality department in a box!” – Sandro Lucarini, Managing Director, Campus Cerdanya
  • “ReviewPro has helped us respond quicker to our guests on the most critical aspects of their stay, and enabled us to win time to make action plans that will increase guest satisfaction. With the daily alerts for reviews from any OTA or review site, we do not have to go into the application every day but can still be up to date, almost in real-time, on what our clients are publishing about us online. This means that we can react and improve things without needing to check the application for new reviews.” – Berta Vilardell, Director of Sales and Marketing at Sidorme
  • “We need to make sure our key messages are coming through to our customers. And if we are not getting through, we need to figure out how to do things differently to get the messages through or change our strategy. Thanks to ReviewPro, we can find out if our messages reach our customers.”- Joi Chuku, Marketing Manager, The Landmark London
  • “ReviewPro changed the way we manage online reviews completely. We can view and extract information on a chain, individual hotel or even department level. This allows us to segment our analysis to the absolute maximum level possible and to establish mechanisms and processes that will measurably increase our guests’ satisfaction.” – Jacobo Bello, Operations Analyst at Elba Hotels
  • “We don’t have to go hunting for online reviews anymore, they come directly to us and, thanks to ReviewPro’s alerts, land in our inbox on a daily basis. Through these alerts, our hotel directors find out what guests have been writing about their hotel and can follow up on the reviews straight away.” – Jacobo Bello, Operations Analyst at Elba Hotels
  • “The tool is much more complete than all others, with a very comprehensive analytical component that allows us to easily extract important information both on a corporate level and individual hotel level. The way ReviewPro automatically analyzes and presents data allows us to access customer information that is much more precise and permits us to analyze and manage guest reviews in a much more actionable way. ReviewPro’s solution enables us to easily share online reviews with all relevant departments. Aside from that, it was essential for us to see how the product was evolving. For example, we can now compare the Global Review IndexTM (GRI) of different hotels within our chain and we are in the process of integrating our internal customer satisfaction surveys into the tool. Lastly, the value for money we get with ReviewPro is optimal.” – Jacobo Bello, Operations Analyst at Elba Hotels
  • “I started looking for tools, and came across ReviewPro among others. I had demonstrations from many different tools, and ReviewPro was the one that fit our needs best: it is the most complete and has shown more reliability than the others. That’s the reason we started working with ReviewPro. It’s a great product that offers exactly what we need, and has some helpful features like social media tracking, task assignments, and so on.  For any element of our hotel, I can type the keyword into ReviewPro search, and see all the things guests say about it. Before I’d have to spend several hours to go through everything – and even then it was not complete.” – Diego Sartori, Internet Strategist at citizenM Hotels
  • “We found ReviewPro and some other companies that provide hotel reputation management services. After doing an analysis of all the tools on the market, we chose ReviewPro because it indexes the most data, includes the most helpful features, and just meet our needs best overall.” – Victoria Shamshurova, online communications manager for Katerina Hotels
  • “After considering a number of other options, we found ReviewPro to be the most relevant solution for our 350 trend-setting hotels around the world.” – David Maranzana, President of Epoque Hotels.
  • “It was critical we selected the best-of-class provider, and our research process showed ReviewPro was the most comprehensive reputation analysis and management tool on the market.” – Stephen Fitzgerald, COO, Sabre Hospitality Solutions
  • “Reputation scoring and quality control are no longer limited to snapshot mystery guest visits, and now should be used to also benchmark market and price positioning against comp sets. After studying the various tools available on the market, we are confident that ReviewPro is the most complete, relevant and superior solution for our international portfolio of hotels.” – Riko van Santen, VP of Distribution and Ecommerce, Louvre Hotels Group

This list will be updated frequently to include the most recent information. To send us your suggestion, email knowledge@reviewpro.com.

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