Online reviews have become an increasingly important factor in the hospitality industry, as more and more travelers turn to the internet to research and book their accommodations. But how exactly do online reviews affect the growth of hotels, and is there a difference between the impact on independent hotels versus branded hotels?

According to a recent study, the answer is yes. The study, published in the Journal of Travel Research, sought to understand the interplay between online reviews and the growth of independent and branded hotels.

The researchers analyzed data from nearly 600 hotels in the United States over a five-year period, and found that both independent and branded hotels saw increased occupancy rates as a result of positive online reviews. However, the impact was more significant for independent hotels.

The study found that a one-point increase in a hotel’s overall rating on a popular review website resulted in a 0.58% increase in occupancy for independent hotels, and a 0.39% increase for branded hotels. In other words, independent hotels saw a greater boost from positive reviews than branded hotels.

The researchers also found that the effect of negative reviews was more pronounced for independent hotels. A one-point decrease in a hotel’s overall rating resulted in a 1.3% decrease in occupancy for independent hotels, while branded hotels saw a 0.9% decrease.

Why might this be the case? One possibility is that independent hotels may be more reliant on online reviews, as they do not have the support of a larger brand. In addition, independent hotels may have more to gain (or lose) from online reviews, as they do not have the same level of recognition as branded hotels.

Overall, the study suggests that online reviews play a significant role in the growth of both independent and branded hotels. However, independent hotels seem to be particularly affected by the power of online reviews, both positively and negatively. It is important for hoteliers to monitor and respond to reviews in order to maximize the benefits of a strong online presence.

As a hotel owner or manager, it’s important to pay attention to your online reviews and take steps to prevent any negative feedback in the future. Sentimantle provides you powerful tools to improve the quality of your services and operations and the perception of guests.
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(Source: Ding, X., Gao, B., & Liu, S. (2022). Understanding the interplay between online reviews and growth of independent and branded hotels. Decision Support Systems, 152, 113649)