The Impact of Guest Reviews on Hotel Booking Decisions

It is no secret that hotel reviews, ratings and comments give hotels that have them a powerful competitive advantage when they are positive. This has not gone unnoticed by online intermediaries, which, aware of this fact, use it intelligently to increase their conversion rates. A very recent study I have had access to indicates that 58% of online shoppers prefer websites with reviews, and consequently, 44% of leading online intermediaries offer some form of review or rating system. Some even take these ratings into account in the algorithm that determines how hotels are ranked on their website. Other studies, such as one conducted by Goldstar Events, analyse the influence these reviews have on purchasing decisions for products that affect the user experience—and hotels certainly fall into that category. This study, conducted among its users—who in this case are enthusiasts of artistic events—shows that user-generated reviews can have an even greater impact than reviews in traditional media, and can be just as influential in the purchase decision as the opinion of someone trusted. Where do users prefer to gather information about the product they are going to buy? It is interesting to note that, when asked where they would look for information before making a purchase decision, 62% of respondents preferred to view reviews generated by other users, a figure even higher than the 59% who preferred the opinion of a friend. This gap is even wider compared with articles published in traditional media, which are considered by only 25% of respondents. Hotels should take these figures into account in their strategies. However, knowing that 52% prefer to see information on the supplier’s official website means that equipping it with a system of reviews from other users can become a powerful sales tool. How does a negative review affect the purchase decision? The difference between the impact of negative reviews in traditional media and online media on purchasing decisions is highly significant. Only 2.3% of users state that negative reviews in traditional media would affect their purchase decision, while 45.7% say their decision would not be affected. On the other hand, 30.5% of users would take negative reviews on Internet sites into account, while only 16.9% state that they would not be affected by them. These results undoubtedly reinforce what I discussed in a previous article about the customer’s social value, and the fact that traditional opinion leaders are seeing their influence diminish. A friend’s recommendation may be one of the greatest influences when deciding which hotel to book, but it is very interesting to observe that reviews posted by other users on online portals can have almost the same impact. In fact, 86.9% would trust a friend’s opinion, while 83.8% would trust reviews written by strangers. This is undoubtedly very useful information for those unable to invest in major marketing campaigns. The key, of course, lies in having a broad selection of favourable reviews across our hotel distribution channels. Online users value the opinions of others, especially when they believe those users have a similar profile, with opinions, expectations and needs that may also be similar. One might think that these figures merely reflect the tendency of users of a certain age, or below a certain age, but the study reveals very similar trends among those over 40 and those under that age. It therefore cannot be associated with a generational fad taking hold in certain groups; rather, it is part of a widespread social trend in Internet use. This is what the Web 2.0 phenomenon is about, and it is no longer enough to seek competitive advantages through price, product and service: proper online reputation management can produce even better results. Finally, I would like to add that we always make the mistake of associating the term “user reviews” with TripAdvisor, which is indeed the benchmark. However, there are many more websites featuring customer reviews, and an increasing number are incorporating them into their services. Yet we tend to think that it is enough to manage reputation or comments on transactional websites or those of online intermediaries, while downplaying what may be said on other sites such as blogs, forums, news sites or product review websites. I believe this is extremely important information to bear in mind.