Guest Reviews more valuable than Brand Value: A Study by Expedia Group
Guest ratings are more valuable than brand. This supports various studies on the topic, including our own research, which revealed that travelers are 3.9 times more likely to book a hotel with a higher rating.
The relationship between guest ratings and pricing is the backbone of feedback management. Increasing RevPAR is a top priority of any hotel, meaning efforts to increase the ADR can have significant effects.
One result is that regardless of the pricing, one-third of all travelers would only see hotels with higher reputation scores, and are therefore willing to pay more.
The results from Expedia’s research reconfirm the high value of guest ratings for a hotel, with quantifiable impacts on a hotel’s price.
We recommend a 4-step approach to achieve higher satisfaction rates and maintain a good reputation:
Step 1: Evaluate your hotel’s current reputation
Step 2: How do you stack up against the competition
Step 3: Collect more reviews: increase rating
Step 4: Re-evaluate your price: generate more revenue