Why Is Online Reputation Key in Revenue Management?

Why is online reputation key to Revenue Management?

Reinforcing and auditing the proposed strategy in our accommodation through customer validation is essential to work according to the traveler’s perception. We must start from the concept of online reputation as an advantage that allows us to analyze the market and know the relationship between supply and demand.

According to a study  carried out by the consulting firm PhocusWright for the Tripadvisor traveler’s social network 83% of users say that they feel safer if they check the comments made on this website before booking a hotel stay. In addition, the survey itself shows that 80% of respondents are satisfied with the comments shared on this website and perceive them as valuable. The number of users who make reviews increases annually by 50%, so the volume of potential customers who are part of this website continues to grow.

From a good online positioning of the target brand, on the popularity of platforms such as Tripadvisor, there is a phenomenon of revaluation of the tourist products of the place. Interest translates into traveler needs. Under market regulation processes, higher prices are proposed in the face of higher demand. In the
study carried out by the online reputation tool ,TrustYou, a simulation was used to analyse the aspects that travellers prioritize when defining online hotel reservations. In scenarios where there were price adjustments, users continued to choose the hotel with the best reputation. In the case where the user was explicitly asked whether he would pay more for a hotel with a higher reputation rating, 76% answered in the affirmative.

It is important to implement processes in our hotels that take advantage of the full potential of reputation in order to optimize the different pricing policies. These are some of the key factors in online reputation management:

• Apply a methodology based on technology to eliminate subjectivities and distortions in the conclusions obtained from the opinion of the traveller. Gathering the traveler’s perception is important to improve in view of the vision that we can gather thanks to these platforms.

• Capture and display the results of the hotel’s own satisfaction survey. Complement the information provided by the social travel networks with significant issues according to the specific characteristics of your accommodation.

• Publication of the results of the valuations in your hotel. Most negative comments provide credibility and transparency. Knowing how to take a bad criticism and put a solution to the problem conveys confidence to the potential traveler who is looking for information about our accommodation.

• Always respond to all public comments about your hotel. Consistency and the ability to deal with difficult situations allow us to look ahead to the market. Being competitive requires a responsibility in this regard.

A good online reputation can lead, through good management, to an increase in the average hotel price and, therefore, if occupancy does not decrease, to an increase in income per available room (RevPAR). Hotels need to bet on improving their online reputation given the importance and weight that this variable has as a factor in the traveler’s purchase decision.