What You Don’t Know Can Hurt You

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How Your Online Reputation Affects Your Profit

“New research by the Cornel School of Hotel Administration confirms that online guest satisfaction has direct impact on the financial performance of hotels. This unprecedented research validates a direct link between online customer satisfaction and the overall revenue performance of hotels. The study verifies that the impact is across all distribution channels: online and offline.”(see more at www/reviewpro.com) Their findings are based on analysis of more than 31,000 monthly observations over 2 ½ years on midscale, upscale, and luxury hotels in 11 major metropolitan markets in the North America and Europe: London, Milan, Rome, Madrid, Berlin, Prague, Chicago, Los Angeles, New York, San Francisco and Miami.

This research arrives at the conclusion that positive online reputation doesn’t provide higher pricing power for online sales only. Having positive reviews for your hotel also leads to higher group booking rates in addition in reservations made over the phone. Another research by tracknow.com reports that if three hotels are located in the same neighborhood, the hotel with the highest number of total online reviews and the highest number of positive reviews books more rooms regardless of the fact that it charges the highest daily average rates. And finally, recent study from reveiwpro.com on hotel’s revenue growth from online sources, such as your own website, booking.com, expedia.com etc – reports that in 2013, hotels saw increase of 10% from online booking. Based on past data and current trends they project that the revenue growth for 2015 from online bookings will increase to 30% in 2015 and in 2017 that percentage will reach up to 70%. All of these studies demonstrate the direct relationship between the public perception of your hotel, your online hotel management and your bank account. Obviously the influence of online reviews and social media has now reached an unprecedented level within the hotel industry. Smart hotel executives are fully aware of the value of online reviews and social media as a key source of client insight for further improvement and thus, increase of revenue, and as an indispensable tool for management and hospitality excellence.

Yet while this has happened, many in the industry have been undecided on the best way to measure direct return on investment from social media and reputation management. WEBSREFRESH has been a loyal promoter and educator of the various ways, techniques, and strategies for the use of social media for increasing your ROI. The company offers complete social media packages, consisting of setting your hotel’s social media channels, providing daily social feeds, blog, tags and content management and editing. We also follow your engagement and interaction with guests, online reputation management of comments and reviews, social media campaigns, social media events associated with important dates or major holidays etc.

Included in the package are social media monthly reports and trends of engagement, which are the very tools a smart hotel executive will use to increase operation and profits. In hotel management what you don’t know and what you ignore does hurt you. Websrefresh can review your hotel’s online reputation and prepare data and stats and report of your social media performance and online reputation. We also have devised our own tests to merge the results of your social media with your online visibility, ranking in SEO and compatibility with Google’ Hummingbird Algorithm and give you a clear plan of action of how you can increase your ROI using social media.

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