By measuring their reputation management efforts, involving the entire operations team, and tying compensation rewards to reputation achievements, hoteliers will see improvements in their overall guest satisfaction scores and, in turn, will receive higher review ratings. In case you missed this informative session, you can listen to the recording and view the presentation deck.
As our Cornell University co-host published in a recent study, proactive online reputation has a direct impact on your hotel’s bottom line; their Center for Hospitality Research (CHR) report shows that a one-point increase in a hotel’s average user rating on a 5-point scale makes potential customers 13.5% more likely to book that hotel. Moreover, hotels with great online reviews can charge more than those that do not rate as high. Finally, hotels that use social media for service and engage in the space to surprise and delight customers earn more positive guest sentiment scores.
As mentioned during our webinar, eCornell has, in partnership with Cornell’s School of Hotel Administration, developed 14 professional certificate and 38 courses that provide the knowledge and analytical skills needed for efficient and effective management of worldwide hospitality investments. Among them is the new Hospitality Marketing & New Media Strategies for Revenue Growth. This course in new media marketing, called Marketing the Hospitality Brand through New Media: Social, Mobile & Search, is free to all of our session attendees.
Finally, we received a number of questions come in during the session via our live Twitter chat that we would like to answer in greater depth here:
How again can property management be awarded bonuses or compensation benefits for better online reputation?
By paying close attention to Revinate‘s guest satisfaction (Gs2) reports, hotels can leverage aggregated hotel review data to set goals for hotel staff to meet across all functional areas. Overall guest sentiment scores, for example, can make a valuable incentive for hotel general managers. Department heads could be awarded bonuses based upon departmental sentiment, while front desk managers could be given goals around response time or social media management. To learn how social media will change hospitality compensation plans, have a look at our blog post on the topic.
Is there any data available that is focused on the limited service or economy hotel sectors? A lot of the studies discussing the relationship between online reputation management and property performance seem to focus on the luxury segment.
While the Cornell Center for Hospitality Research study showed a direct relationship between revenue per available room and online reputation scores, the report did not include the economy segment. Nevertheless, the study showed that revenue grew by chain scale from the top down: A 1% boost in reputation led to a .49% increase in RevPAR at luxury hotels, .74% at upper upscale, .83% at upscale, 1.13% at upper midscale and 1.42% at midscale. Moreover, about 20% of our 15,000+ customer base fall into this limited service segment and firmly believe that online reputation is equally, if not more important, in the category.