How to Address Consumer Concerns Lodged Through Social Media
By Robert Patterson Vice President of Content & Social Strategy, MMGY Global | February 24, 2013
Hotel guest feedback has taken many forms over time beginning with verbal communication at the front desk and over the phone, progressing to customer comment cards, evolving to online reviews and most recently surfacing with the rise of social media. Is your hotel developing a strategy that includes addressing social media customer feedback? Learn how to identify, evaluate and respond to consumer concerns through online reviews and social media.
The Correlation of Online Reviews to Hotel Revenue
According to "The Impact of Social Media on Lodging Performance," a newly published study by the Cornell Center for Hospitality Research at Cornell University, a 1 point increase in a hotel's online reputation score on Travelocity's 5-point scale allows a hotel to increase its price by 11.2% and maintain the same occupancy and market share. The study also details how a 1% increase in a hotel's online reputation leads up to an 0.89% increase in average daily rate (ADR), up to 0.54% increase in occupancy and up to 1.42% increase in revenue per available room (RevPAR). In December 2012, TripAdvisor, released a study directly linking reviews, photos and responses to traveler feedback to increased visibility and engagement on the popular travel review site.
Although the importance of reputation management has been known in the hotel industry for sometime, it has never been more evident that ignoring your online reputation will directly impact your hotel's revenue potential.
The Importance of Consumer Word of Mouth
According to the 2012 Portrait of American TravelersSM, a national survey of 2,524 U.S. households, 83% of those surveyed selected family and friends as the top source of trusted travel information. With an increasing amount of individuals communicating, reviewing and recommending products and experiences to their friends and family through social media, online word of mouth is paramount to successful organic referrals and sales in today's marketplace.