In a digital world, not only every visitor to your hotel is a potential critic, they also have the power to reach a wide audience, and their views can have a significant impact upon your revenue. It is for this reason that the concept of managing online reviews has emerged as such an important part of any hotel reputation management strategy.
The Importance of Online Reviews
Research from TripAdvisor shows that 93 percent of people now use internet reviews to help decide which hotel to stay at, and more than half will refuse to book a hotel that does not have any reviews online. This research highlights their modern day importance and shows why hotels need to manage their reputation carefully.
With both negative reviews and an absence of reviews hurting your potential customer base, it is essential that you try to build a steady base of positive reviews across the different hotel review platforms.
Reviews and Revenue Management
The concept of revenue management revolves around selling the right room, to the right client, at the right time, for the right price, via the right distribution channel. It stands to reason, therefore, that positive online reviews can have a favorable impact upon your revenue management strategy by increasing the demand for your rooms, leading to higher revenues. In addition, research also shows that guests are willing to pay a higher price for hotels with outstanding customer feedback.
On the other hand, poor reviews or a poor overall score on certain hotel distribution channels can impact upon your ability to sell rooms through those distribution channels, which could result in lower revenue than would otherwise be possible.
Tips for Managing Online Reviews
Below, we have compiled a list of seven useful tips to help you manage your online reviews:
