Industry Report: How online reputation affects hotel trading performance

By Horwath HTL on April 6, 2016

How Online Reputation Affect Hotel Trading Performance 1

Horwath HTL Croatia has written the next in our series of market reports, focusing on how online reputation affects hotel trading performance.

Online reputation has become a major factor in the choosing of a hotel. Now, most travelers will use online sources to review hotels and other tourism operators during their decision making process.
Reviews are thought of as a trustworthy source of information and travelers can form a better picture of the property than they could by just looking at the official marketing communication or asking their direct peers. Needless to say, many factors (e.g. destination image and attractivness, microlocation of the property, brand, market positioning, service standards, etc.) contribute to hotel performance, and in turn to their online reputation.
In this report we investigate whether a direct correlation between hotel performance and its online reputation really exists, in particular with relation to its ranking on TripAdvisor as the leading global travel review site. The report focuses on independent resort-type hotels located along the eastern coast of the Adriatic, covering the markets of Croatia and Montenegro.
In addition, we offer some tips and recommendations that all hotel operators can follow to try and improve their online reputation and corresponding RevPAR performance.


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