Managing customer reviews is an essential factor for hotel’s performance. As well as simply collecting feedback, it has a direct influence on travellers’ perceptions, decision-making, booking volumes and even pricing management. Effective management of this feedback can transform a hotel and boost its profitability.
The impact on perception and attractiveness
Online reviews play a decisive role in a hotel’s image. A hotel that accumulates positive feedback benefits from greater visibility and attracts more customers. When future travellers come across positive comments about the welcome, cleanliness or quality of service, they are reassured and more inclined to book. Conversely, repeated negative reviews can act as a disincentive to book and tarnish the hotel’s image. Poor handling of criticism, in particular a lack of response or clumsy explanations, can make the situation worse and give the impression that the hotel does not take customer feedback into account.
A direct influence on decision-making
Today, the majority of travellers consult reviews before choosing a hotel. According to IFOP, 88% of potential buyers consult online reviews. Platforms such as Google, Booking.com and TripAdvisor also use these ratings as one of the determining factors in their hotel ranking, thus having a direct impact on their visibility. A hotel with a good rating is more likely to appear at the top of the results and attract more customers. What’s more, reviews create a climate of trust: a hotel with several hundred positive reviews is much more seen as “secure” than one with just a few.
Impact on booking volumes and occupancy rates
The relationship between a hotel’s average rating and its occupancy rate is well documented. According to studies by Cornell University, a 1% increase in online reputation leads to a 0.54% rise in occupancy rates.
A hotel with a good reputation therefore stands out from the competition and maximises its occupancy rate. What’s more, travellers who are prepared to pay more for an experience that is perceived by other customers as a quality experience are more inclined to book quickly in a hotel that regularly has positive reviews.
Impact on room rates
A good online reputation allows hoteliers to adapt their pricing strategy. A hotel with an excellent rating can justify higher room rates without negatively affecting conversion. Well-rated hotels can charge room rates up to 10% higher than their competitors without seeing their occupancy rate fall. This reputation also has a direct impact on RevPAR (Revenue Per Available Room), a key indicator in hotel management. The higher the hotel’s overall rating, the greater the opportunity to optimise its revenue per available room.
Reducing customer acquisition costs and building customer loyalty
A hotel with a good rating is less dependent on paid advertising on OTAs (Online Travel Agencies). When a hotel has a solid e-reputation, it receives more direct bookings via its own site, thereby reducing the commissions paid to booking platforms. In addition, a positive customer experience encourages repeat stays and word-of-mouth, improving customer retention and limiting acquisition costs.
An opportunity for continuous improvement
Customer reviews are not just an indicator of satisfaction, they are also a valuable resource for improving a hotel’s offering. By analysing trends and recurring comments, it is possible to identify priority areas for improvement. If several guests mention a wifi problem or a lack of variety at breakfast, this feedback becomes a concrete basis for corrective action. An appropriate response to travellers’ expectations boosts satisfaction and encourages positive reviews in the future.
What’s more, with the arrival of artificial intelligence, it is now possible to generate a reply in line with the comment received. This saves hoteliers a considerable amount of time, enabling them to concentrate on inhouse guests.
Conclusion
Managing customer reviews is much more than just a formality, it is a real strategic lever for a hotel. By influencing travellers’ perceptions, boosting bookings and optimising room rates, it plays an essential role in the overall performance of hospitality industry. A proactive approach and sincere consideration of customer feedback can not only improve satisfaction, but also ensure the durability and growth of an establishment.
If you’re looking for a tool to centralise, analyse and respond effectively to your customer reviews, our Experience CRM solution is designed to support you every day. Ask us for a demo here.
