RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce archives : September 25, 2014

Travelers will pay more for hotels with better travel reviews

A unique study, using simulated booking engines and heat mapping technology, has shown a link between reviews and hotel conversion rates and pricing.

by Helen Leggatt

Global online reputation management firm TrustYou teamed up with Donna Quadri-Felitti, Academic Chair and Clinical Associate Professor at NYU, Preston Robert Tisch Center for Hospitality and Tourism, to undertake the unique study.

Results show a definite link between travel reviews, pricing and consumer behavior. In essence, hoteliers that effectively manage and strive to improve their online reputation can increase revenue through more bookings and charging higher prices.

For example, travelers are 3.9X more likely to choose a hotel with a higher review score even when prices are the same. Furthermore, even when hotel prices are increased for hotels with better review scores, travelers are still more likely to book the hotel with the higher score even if it costs more.

When asked outright, more than three-quarters (76%) of travelers said they were willing to pay more for a hotel with higher review scores.

"The effect that reviews have on the price that travelers are willing to pay is especially profound," said Quadri-Felitti. "In our simulations, hotels with the highest review scores received significantly higher click-through than lower rated hotels."

Image via Shutterstock

Tags: hotel, online booking, review trends, travel ecommerce

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.