Hoteliers, take note – your online reputation is now the biggest factor that affects your business. According to TripAdvisor, one of the largest Internet-based travel guides in the world, 93% of individuals booking travel make their determination based on online reviews.
What’s more, a recent study by Lightspeed Research finds that a low star rating – typically three stars or less on a scale of five – is enough to convince nearly 70 percent of potential customers to book with nearby competition. Cornell University completed a similar assessment and notes that a steady and positive stream of online reviews can provide those in the hotel industry a major boost in business. According to the University, for every 1 percent an online reputation rises, occupancy increases by a half percent. Effectively, a one star difference in rating – using the same one to five measure – can increase a hotel’s occupancy by 10 percent.
It is estimated that the three to four star rating is the “tipping point”, meaning hotels at or above this threshold are three times more likely to book a traveler’s reservation than a comparable nearby establishment. Regardless of amenities, it seems that vacationers and businesses travelers lean more toward word-of-mouth and previous guest experiences than the hotel’s website.
Social media
Social media has made paying attention to your online reputation management campaign more vital than ever. An unsatisfied guest can instantly upload photos, videos, or reviews of shoddy service or subpar conditions. Sites like Facebook and Twitter, that allow content sharing, make it easy for one negative posting to reach millions of people overnight.
Reputation remedy
Regardless of whether negative reviews are based in reality or an attempt by a disgruntled employee or rival inn to stifle your status, online reputation management is a major factor in how damaging these reviews can be.
An effective online reputation management campaign should begin with a thorough evaluation of your business. Determine whether your hotel actually provides lodgers with a pleasant experience. It should live up to consumer expectations, including having a courteous staff and adequate housekeeping. Next, determine who your loyal customers are. These are the people who continue to stay, despite bad press. Help these customers spread the word about all the good surrounding your accommodations. Don’t be afraid to send them a personal note asking them to post their opinion online.
Improving your online reputation means responding to bad reviews and making a genuine effort to rectify to guest’s complaint. According to TripAdvisor, 84 percent of their site users respond favorably to an appropriate management response to a negative review. You should never be afraid to apologize for poor service.
In the end, an online reputation management campaign has to incorporate a “customers first” philosophy. Without excellent customer service, any business in the hospitality industry is doomed to fail. Fortunately, keeping your occupancy up is a simple process that begins with proper staff training and ends with always following up on your word. And, in a world where social media is king, it is important to choose your words – and your employees – carefully or you may find yourself with empty rooms and even emptier pockets.