TripAdvisor online reviews influence on revenue
Online reviews have become more and more important in today’s networking world.
How many of you are reading the review of a product that is some impact to your wallet?
Surely, you have looked up reviews in any type in the last month. This can be actively reading reviews at Booking.com, this can subconsciously by making your product choice on Bol.com based on the number of stars per product, ultimately, probably by reading the reviews on this website.
Based on those electronic reviews, potential customers are making the choice whether or not they will buy and to what price!
For the Hospitality Industry TripAdvisor has become a major platform for decision making reviews.
In 2019 we have conducted a research among 5-star hotel guests and their opinion to reviews. The goal was to establish a connection between reviews and sales.
TripAdvisor has become a major online review website in the past decade. The TripAdvisor ranks are built out of:
- Quality of a review
- Quantity of reviews
- Recency of the last review
- Response rate ( How fast does the property react on a review and gives an answer)
According to several sources, these reviews contain a ranking system which have direct impact on the booking process as well as the rate that customers are willing to pay.
Findings of our research
In fact, we found out that an increase of 0.5 points on the TripAdvisor Rank, will hypothetically result in an increase of 10.5% in ADR.
A very interesting additive is, that the Response Rate is a deciding factor during the decision process, slightly more even than the rank self.
Aware of fraud – but still a trusting customer
This gives platform like TripAdvisor, and there are many like, a lot of power over your business. One might think, it is only a system, guests won’t trust it fully, but here they are mistaken. 61,5% of our research sample was fully aware that TripAdvisor is giving many possibilities for false information. Even worse, they also knew that websites are existing where business can create, fake, or maintain reviews. However, those exact 61,5% did not see a see a connection whether or not to trust TripAdvisor based on that information, which is quite shocking.
Does your business receive bad reviews and does your sales decrease? Plan now your free appointment with us, to get to know how we can boost your image and your sales!
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