Consumer reviews and the creation of booking transaction value: Lessons from the hotel industry

In recent years, much has been said about online consumer-generated feedback. Concern typically emerges regarding consumer decision-making as well as the preservation of an organization's image. Additionally, a company's financial performance can be affected by customer online ratings. The...

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Bibliographic Details
Published inInternational journal of hospitality management Vol. 50; pp. 77 - 83
Main Authors Torres, Edwin N., Singh, Dipendra, Robertson-Ring, April
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.09.2015
Subjects
Consumer-generated feedback
Hotel finance
Lodging
Online reviews
Lodging
Hotel finance
Consumer-generated feedback
Online reviews
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Summary:In recent years, much has been said about online consumer-generated feedback. Concern typically emerges regarding consumer decision-making as well as the preservation of an organization's image. Additionally, a company's financial performance can be affected by customer online ratings. The present study explores the impact of a hotel's rating and number of reviews on the value generated through online transactions. Through collaboration with consulting company Travel Click, the research team gathered a sample of 178 hotels representing various companies and brands within the United States. Research results demonstrate that TripAdvisor ratings as well as the number of reviews had positive relationship with the average size of each online booking transaction. The paper concludes with theoretical and practical implications.
ISSN:0278-4319
1873-4693
DOI:10.1016/j.ijhm.2015.07.012