The concept of customer referrals is as old as business itself, but gone are the days when even the most vocal former guest could influence only a handful of potential customers. Today, online reviews and customer ratings have given your guests a powerful voice that can impact your bottom line in a very real way. But it's entirely up to you whether this impact is a positive or negative one.
According to Forrester, one out of three U.S. travelers use reviews and blogs to inform their travel decisions, and PhoCusWright recently found that 87 percent of consumers shopping for hotels are influenced by online reviews. Likewise, a 2008 Expedia analysis of New York City hotel bookings showed properties with a 4-5 point user rating (on a scale of 1-5) held conversion rates of more than double those of properties with user ratings three points and under. The impact is undeniable, but what can hotels do to make sure they're benefiting from online guest reviews and rankings?
By following a simple set of best practices, any hotel can make the most of user-generated content and turn guests into influential brand marketing allies. Here are four basic tips to help you transform online guest reviews into a powerful demand driver:
1. Guest reviews are free marketing. It sounds simple enough, but too many hoteliers view online guest reviews as an annoyance rather than a simple way to bolster demand for their property. If you're confident in the service you offer, encourage your guests to share their experience on various travel sites. One in three U.S. travelers has contributed a review, according to Forrester, so why not ensure they're spreading the word about your property across the Web? OTA's like Expedia.com and hotels.com allow reviews by customers that booked through their site, and TripAdvisor, a non-transactional site, already has the largest collection of hotel reviews in the world. A single positive review on one of these sites can help give your property the competitive edge the next time a potential guest is researching their lodging choices.
2. Transparency is key. People may trust reviews from previous hotel guests, but they're quick to cry foul when they suspect reviews or ratings are biased or insincere. Establish a clear policy with staff that all reviewing and rating should be left to the guests, and assign a single person to respond directly to online reviews. Many review sites give hoteliers the opportunity to publicly respond to guest reviews, but few hotels take advantage of this. If handled with poise and professionalism, this personal approach can help minimize the damage of negative guest reviews by showing potential customers the responsiveness and dedication to customer services that travelers value.
3. Understand the billboard effect. Consumers shop around and user-generated content has blurred the lines between 'preferred channels.' A recent Compete, Inc. survey found that Expedia hotel bookers made an average of 8.3 visits to other OTA's or hotel supplier sites. An independent study by comScore found that for every one transaction a hotel receives on Expedia, our shoppers also book 1.8 transactions directly on hotel sites. So, even if a customer books directly with you, there's a good chance they made their decision based on guest reviews they read on OTA's or other travel Web sites.
4. Take critical feedback in stride. You can't please everyone all the time, so don't get hung up on the occasional negative review or rating. By looking for patterns in customer reviews, you can identify areas of opportunity for improvement and also find occasion to reward your staff for delivering the kind of service that earns customer praise. Over time, guest reviews can be a powerful way to qualitatively measure customer service performance and understand the potentially fruitful and lasting impact of every guest interaction.
About Expedia
Expedia is the world's leading online travel provider, helping millions of travelers per month easily plan and book travel. Expedia (www.expedia.com, 1-800-EXPEDIA) aims to provide personalized service, the latest technology and the widest selection of vacation packages, flights, hotels, rental cars, cruises and in-destination activities, attractions, and services. With the Expedia Best Price Guarantee, Expedia promises to offer to its customers the best rates available online for all types of travel. Expedia.com is an operating company of Expedia, Inc. (NASDAQ: EXPE).
