Hotel Industry Insights: Increasing Reviews Can Increase Your Hotel Revenue, Here’s How

Increasing Your Hotel Rank
Impacts Your Revenue, Here’s How

While it’s long been known that travel reviews influence traveler decisions, the impact of positive hotel reviews can never be understated. For example, a Cornell study found that a one-point increase in reputation (based on a five-point scale) may result in a hotel’s ability to raise room rates up to 11.2%, as well as increase hotel revenue. Additionally, a TrustYou heat mapping study found that given equal prices travelers are 3.9 times more likely to choose a hotel with a higher review score. Even when hotel prices are increased for hotels with better review scores, travelers are more likely to book the rooms in hotels with higher rankings despite the higher rate. In fact, 76% of travelers said they were willing to pay more for a hotel with higher review scores.


The fact is, today’s Hotel guests are sharing their reviews and ratings online about almost every aspect of their experience, from the breakfast they’re offered to the beds they sleep on. If it’s part of the hotel experience, you can be sure that guests will be sharing it, whether it’s positive or negative.

Interestingly enough, one of the most important aspects that hotels are ranked for today is the quality of their WiFi. In a previous post we shared 5 reasons why your hotel needs a smart WiFi solution.

Until recently most reviews would be shared in the form of textual and images, however we’re now seeing more and more videos shared prior to guests checking out. This makes it increasingly important for hotels to understand how to manage guest engagement and experiences form check in to check out.

45% of the individuals surveyed in a recent Ipsos study stated that user-generated content, such as reviews—the good and the bad—plays a significant role in their hotel choice, more interestingly, 68% of the respondents stated that they trust reviews posted by their peers.

Reputation management pays off, too. A study by Cornell University School of Hotel Administration revealed that if a property sees its review scores go up one point on a five-point scale, it can raise room rates by just over 11% and still maintain the same occupancy or market share. 76% of travelers in a TrustYou survey noted that they were prepared to pay more for a hotel that has higher review scores.

95% of travelers’ report using travel reviews regularly to make booking decisions


Ultimately, better rankings and reviews generate higher booking rates, although their importance varies based on the geographic locations. If the hotel’s ranking on TripAdvisor is improved, the bookings will increase (similarly) in Europe and in Asia-Pacific. Both the average review score and percentage of 5-star reviews increase bookings in both Europe and Asia-Pacific. However, the average review score has a greater impact on bookings in Asia-Pacific, while the percentage of 5-bubble reviews has a greater impact on bookings in Europe. While the same overall results apply to Rooms Sold as to Bookings, one notable difference is that a higher average review score yielded only a marginal increase in rooms sold in Europe and a substantial increase in Asia-Pacific.


Want to find out more about how your hotel can take advantage of the latest hotel technologies, and implementation? Contact us today. We’d love to talk.


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