“Online social media reviews have become an incredibly influential channel for revenue generation. We have put greater importance on managing guest feedback and become very successful at doing so. The higher our ranking, the greater the revenue and bookings, therefore it is essential we continue to manage opinion wisely,” Ranya Kalus de Bragança, Deputy Director, Hotel OTTO Berlin.

Published: 19 Jan 2011

“Online social media reviews have become an incredibly influential channel for revenue generation. We have put greater importance on managing guest feedback and become very successful at doing so. The higher our ranking, the greater the revenue and bookings, therefore it is essential we continue to manage opinion wisely,” Ranya Kalus de Bragança, Deputy Director, Hotel OTTO Berlin.

By Michael McCartan, COO, RateTiger – eRevMax

The increasing prominence of social networking websites has given rise to easy content sharing between consumers and a growing importance of online reviews when researching and booking travels. This has created a deluge of online personal anecdotes, humorous incidents, and above all a wealth of reviews and recommendations about hotels, restaurants, airlines and almost every conceivable product and service. The travel industry is now paying more attention to the likes of TripAdvisor, trivago and Zoover that are also having a big impact on revenues.

There’s no escaping the digital revolution so it’s best to get stuck in and understand how your guests are using Facebook, Twitter, YouTube and Guest Review websites. Web 2.0 brought comments, interaction, content exchange that is now being used across all industries. Consumers are actively seeking other traveler reviews before booking with travel agents, operators and hotels. The hospitality industry including restaurants, bars and hotels are being the most affected as decisions are based on what people are reading online.

In the UK over 50% of holiday bookings are researched online – that means over half your business could be affected by your former guests. If you don’t know what is being said about you, you are operating at a significant disadvantage both for offering customer service and being competitive in your local market.

You will be reviewed, whether you like it or not and with review sites now offering booking capability it is crucial to begin treating them like other sales channels. Your sales potential online is directly linked to your hotel’s reputation on these sites. It’s important to understand exactly what the guests want and expect. Reviews will give you all the insight from those customers who tell you to your face, to those who hide behind anonymous names. For the guest it’s the entire experience from researching accommodation, booking, checking-in, checking-out and sharing. You need to know their experience.

Guest review websites will give you more information about your guests than you could ever dream of getting when they check out – who they are, what they like, age, and lifestyle – from a review you can build a whole personality profile, the “Avatar”. A greater understanding of your guest and their likes and dislikes helps you to understand the value you offer and how you can market this appropriately.

It is also very important you manage reviews effectively, so begin engaging with them and see what positive impacts that can have on your business. Hotels ranking high on guest review websites will see more bookings as a result of positive reviews. Hotels don’t get to the top by assuming their guests will do it once they leave the premises; instead they continue through post-sales by encouraging reviews and responding to existing comments.

Reviews may fill you with horror but these sites should be taken as opportunities to improve your brand. You can learn about guest experiences, address any problems, and solve them immediately. “There is an ever increasing importance to look after guests during pre-sales, the actual stay and post-sale. With the rising popularity of review websites and consumer generated content it is imperative to monitor and respond pro-actively,” said Sascha Hausmann, CEO, eRevMax. “The internet’s instant and constant delivery of information can help improve guests’ perception and bottom-line revenue.”

Review websites have realized the importance of guests’ comments to a hotel and therefore provide the tools for you to communicate directly with those who have left feedback. It is always important to share your side of the story but often it proves more effective to listen. Reviews will not always need a solution but a response will go a long way. Simply thanking a customer for their comments can have a massive impact on how a guest will respect your brand. However by leaving an aggressive response or reacting inappropriately can drive guests away. Any bad impression left by guests can give you the opportunity to turn your business around, while positive ratings can help your revenue thrive.

Raphael Lucien, Business Development Europe, Zoover, says “Advertising is not as powerful as what other customers are saying about the product. You really need to care about your e-reputation in order to keep it under control, you need to be aware and monitoring what is said about your hotels.”

A quick step approach to Managing Reviews

1. Decide which hotel department should respond to the comment (i.e. F&B, housekeeping, etc) and identify the appropriate personnel to respond.
2. The next step is to monitor the online reviews; start small and choose three of the most important review channels affecting local business. Alternatively invest in a guest review monitoring tool to help you manage all reviews in one system.
3. Try to respond to every review. This includes both positive reviews and negative reviews. By responding in a professional and timely manner, it shows the consumers that the hotel cares about its guests’ experiences and improving its services.
4. Incorporate appropriate control within the organization so that no reviews are being missed.

Guest feedback is always a good thing giving you the chance to turn around opinions and stop them going to your competitors. Comments take time, meaning guests expect some form of genuine response directly from the hotel. Reviews should be embraced and not ignored to help you raise in the ranks to achieve more bookings.