Wednesday, October 2, 2013

The impact of social networking on hotels

Leave a Comment


What is the relationship between your hotel’s online reputation and profitability? This question was answered by a recent survey by Cornell University. Below you’ll find a brief presentation of the survey conclusions:

a) The percentage of travellers who read reviews before booking a hotel is steadily growing every year as is the number of reviews read by every traveller before choosing a hotel.

b) If a hotel raises the score of its reviews by 1 unit within a scale of 5 (e.g. from 3.3 to 4.3), then it can increase its prices by 11.2% without reducing its bookings or its market share.

c) The increase of 1% in a hotel's online reputation leads to 0.89% increase in the average daily rate and at the same time results in 0.54% increase in room occupancy and up to 1.42% increase in revenue per available room.

These conclusions make it clear that social media are not just a sales tool; therefore it would be wrong to use them as such.

Hoteliers should try to understand and improve their services through useful content and effective communication with travellers, in order to satisfy the expectations of their clients, so as to improve the positive reviews that, in the long run, will enable an increase in bookings and profitability.
You can read the article and download the full survey here: http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-16421.html

by