Online reputation directly affects revenue per room in hotels – so what to do about it?
Hotels should track their reputation against other competitors, invest in experience design and better service and create reputation goals for their teams.
Want to get some hard numbers as to how influential a hotel’s reputation can be to the bottom line? Well, here you go.
A one-point increase in a hotel’s 100-point Global Review IndexTM (GRI), for example, leads up to a 0.89% increase in price (ADR), a 0.54% increase in occupancy, and a 1.42% increase in revenue per available room (RevPAR).
This seminal study, by Chris Anderson at Cornell University’s Center for Hospitality Research, based on more than 31,000 monthly observations over 2.5 years on mid-scale, up-scale, and luxury hotels in 11 cities in the North America and Europe, used review data from ReviewPro and reporting from STR to quantify the impact of online reputation on rates, occupancy, and RevPAR.