NB: This is an article from GuestFolio
A recent study published by our Analytics Specialist – Huw Jones highlighted an exceptional relationship between a hotels’ Net Promoter Score (NPS) and their TripAdvisor rating. Using multiple methods, Huw outlines in his study exactly how these findings came about and why hoteliers should start paying more attention to their NPS
What is the Net Promoter Score (NPS)?
We have previously written about the NPS however as a quick recap – the NPS is a widely used measure of performance, specifically measuring the concept of customer loyalty. The NPS asks (specifically for hotels) “How likely are you to recommend [hotel name] to a friend or colleague?” Responses are measured on an 11-point scale ranging from 0 to 10, where 0 is extremely unlikely and 10 is extremely likely.
What is my TripAdvisor Rating?
As you know, a TripAdvisor rating is provided alongside a TripAdvisor review. It determines the overall score provided to the hotel from a traveler. This rating has an impact on the overall TripAdvisor popularity ranking algorithm that allows properties to settle into a ranking on the site. This algorithm is based on the quality, recency and quantity of reviews that a property receives from travellers. This algorithm in turn produces a ranking score for each property.
How does the Net Promoter Score Improve my TripAdvisor Rating?
This is where it gets interesting! Our latest study showed that using the Pearson Correlation, the Coefficient of Determination and linear regression, we were able to identify these three key trends:
- There was a very strong positive correlation (0.913) between NPS and TripAdvisor rating, i.e. both seemed to move very similarly together
- 83.4% of the variance of TripAdvisor ratings were explained by the NPS
- A change in TripAdvisor rating can be expected to give a change in NPS – more specifically a 10 point increase in a hotel’s NPS will lead to about a 3 point increase in rating on TripAdvisor
What does this mean for my Hotel
From these findings, we have found an exceptionally strong relationship between the two forms of ratings allowing us to recommend the following:
- This strong, positive relationship aligns with the many actions that hoteliers take to create guest experiences…the higher their NPS the higher their TripAdvisor ratings will be
- The NPS provides insight to hoteliers on how to improve in certain areas. By ensuring your NPS is tracked and part of your decision process, it’s highly likely that hoteliers will be able to make improvements and in turn see this translate into higher TripAdvisor ratings
- Incremental changes to your NPS (through implementation of point 1 & 2) are likely to translate into large ratings improvements on TripAdvisor