The role of user-generated reviews is exploding. TripAdvisor attracts nearly 30 million monthly visitors and 88% of these visitors are influenced by content they read. Word-of-mouth adds a layer of credibility and is more effective than other more formal forms of promotion.
Why is this important? Because with an increasing number of user-generated reviews and people reading and acting on them, the impact of guest satisfaction and dissatisfaction is multiplied and has a quicker economic impact. It used to be said that an unhappy customer would tell 3 others about their poor experience; now they tell 3 million (with less effort). The guest experience has never mattered more.
Market Metrix research has demonstrated that beyond the additional revenue that repeat customers provide, their word-of-mouth communications translate into significant profits for the hotel. In one example the positive word-of-mouth from a happy customer was worth $1,559 in profit for an upscale hotel. This additional revenue highlights the growing value of customers both while they are on property, and after they check out http://www.marketmetrix.com/en/default.aspx?s=research&p=User-generatedreviews