As shown by studies by Cornell University, your hotel reputation directly affects your revenue, which is why a good online reputation is so essential.
What Do Guests Think of Hotel Reputation?
Your hotel reputation is a direct reflection of your guest experience. It will reflect both the good and the bad. Guests browsing for their next stay will take your hotel reputation into consideration when deciding on their next destination. According to STR data, reviews are the third main influencing factor for guests when deciding on their next accommodation, right after location and price.
A good online reputation will encourage guests to book with you, increasing your revenue. On the other hand, a bad hotel reputation will stop guests from booking with you, negatively impacting your revenue.
However, a negative review does not need to be dramatic. With a solid management response strategy, you can control the damage, and even use this response to communicate with your future guests. For example, if a guest complains about loud air-conditioning, you can let them know in your management response that you have fixed this issue. This way, you ensure that prospects are not discouraged from booking with you by this negative review.
How Does My Hotel Reputation Affect Revenue Strategies?
By benchmarking your hotel reputation against competitors, you can identify new revenue opportunities. If you have a high reputation score compared to your direct competitors, you have some room to increase your pricing without hurting your reputation score.
Of course, if your reputation score is low compared to your direct competitors, you need to lower your prices to level with your guest’s expectations. Use this guest feedback as well to identify what is hurting your online reputation, so you can make impactful improvements that will benefit your reputation score.
A tool like ReviewPro’s Competitive Quality Index calculates how much a hotel is under or over-performing in comparison to its competitors.
A good hotel reputation is essential for a profitable hotel business, which is why it is important to keep a close eye on your online performance and how it is affecting your revenue. The guest experience is ever-changing, and so your property too will need to continuously monitor guest satisfaction via online guest reviews.
See here how the Brazilian hotel Aquaria Natal climbed to the top position on TripAdvisor and Booking: