What is a positive review worth in $$?

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

 

 

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2 Comments

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2 responses to “What is a positive review worth in $$?

  1. Without a doubt, positive reviews have significant impact on revenues. In more than one case a campaign to earn positive comments generated a 20% boost in earnings.

    CEO of TripAdvisor stopped by this blog post to emphasize that the credibility of visitor-generated comments must be central to how positive reviews are generated.
    Two simple ways of getting positive reviews.
    http://www.tourismkeys.ca/blog/2008/12/how-to-boost-revenue-20-climb-to-1-on-tripadvisor/

  2. I hope that tripadvisor.com does sell out like yelp has. Apparently some of their employees seem to be taking bribes to remove bad reviews…

    http://www.eastbayexpress.com/news/yelp_and_the_business_of_extortion_2_0/Content?oid=927491

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