Proof: Travel reviews have significant effect on hotel conversion rates and pricing

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Anecdotally, most hoteliers will agree that travel reviews and online user generated content are important for business.

Quantifying this importance, however, is often difficult.

TrustYou recently developed a new study together with Donna Quadri-Felitti, academic chair and clinical associate professor at New York University, Preston Robert Tisch Center for Hospitality and Tourism, to better understand the effect that online reviews have on hotel conversion rates and pricing at the point of purchase.

This study is the first of its kind using simulated booking engines and heat mapping technology to determine consumers’ hotel choices.


The findings reveal that reviews do indeed have a significant impact on both hotel conversion rates as well as the rates that travelers are willing to pay.

Among the findings:

  • Given equal prices, travelers are 3.9 times more likely to choose a hotel with higher review scores
  • When hotel prices are increased for hotels with better review scores, travelers are more likely to book the hotel with the higher score despite the higher rate
  • When asked, 76% of travelers were willing to pay more for a hotel with higher review scores

The study provides evidence that a strong focus on online reviews and reputation management can indeed lead to increased revenue, both from improved conversion rates as well as optimizing pricing.

A breakdown of how much more respondents indicated they would spend


Hotels will find the details of the report useful in considering their immediate online reputation management and rate strategy as well as in determining how to allocate funds for 2015.

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This article is written: by Margaret Ady, vice president of marketing at TrustYou

The above is an extract of the original article available at: Tnooz


About RezNext

RezNext is the world’s only true Real-Time Distribution Management Solution provider. It empowers hotels to adopt a distribution strategy that simplifies the complex global distribution environment and makes it understandable and manageable. It is integrated with revenue management, operating intelligence and powered with reputation management insights. RezNext’s portfolio of offerings include Rate & Channel Manager, Revenue Management, Online Reputation Management, Website Designing and Web Booking Engine, Mobile solutions, Central Reservation System, Business Intelligence, Property Management System (PMS) two-way connect, GDS and OTA Interface and Loyalty & Feedback Management. Our growing range of solutions can be access by hospitality properties across market segment and size, such as independent hotels, chain hotels, business hotels, resorts, clubs, service and limited service apartments, spas, restaurants and others.
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