23 Oct 2013 by ReviewPro in Best Practices
During ReviewPro’s last webinar, Optimizing Reviews, Rates and Revenue on OTAs, we discussed the importance of monitoring and managing reviews on online travel agencies. Here, our panelists and other industry experts answer the most popular questions sent in by attendees.
What is the “Billboard Effect?”
The Billboard Effect is a term used by Chris Anderson, Associate Professor at Cornell School of Hotel Administration, to describe the incremental revenue hotels receive from other channels as a result of being listed on online travel agencies. For the four hotels in his 2009 study, Anderson found the benefits to being listed on Expedia to be between 7.5% and 26% in incremental reservations.
The takeaway here is that many travelers use OTAs to shop and compare and then book direct, and hotels should factor in these advertising benefits when calculating ROI. To find out more check out Anderson’s paper and additional Cornell research conducted in 2011.
How are reviews on OTAs different from review sites?
During the webinar, panelist Adam Anderson, Expedia’s director of industry relations, explained, “One component that separates our review sites from others is that our reviews are verified. That means that in order for a review to appear on our site, we verify that the reviewer actually booked the hotel room. This cuts down on fraudulent reviews, which I know has been an area of frustration for many hoteliers.”
Panelist Jennifer Rota, general manager of Distrikt Hotel in New York, said she finds OTA reviews more succinct. Also, some OTAs prompt travellers to say what they liked and disliked. “If you ask for negative, often you’ll get it,” she said. “We consider it constructive criticism.”
After the webinar I asked David Attardi, vice president of interactive marketing at B.F. Saul Hospitality Group, for his thoughts. “One interesting thing with the OTA reviews is that they are so general and with no real requirements that sometimes the feedback is not very helpful,” he said. “For example, a guest may rate us with scores across different categories and may or may not leave specific feedback, so even on sites where we can respond, there is nothing to respond to.”
No question, reviews on OTAs aren’t as well organized and easily navigable as on TripAdvisor. But another key takeaway from the webinar is that they still have a significant impact on traveler decisions. A reputation management tool like ReviewPro can help by tracking, aggregating and benchmarking OTA reviews.
Should I respond to reviews on OTAs?
Yes, recommended Anderson of Expedia. “On some other sites, I see a lot of hoteliers responding to rebut some of the claims in a review,” he said. “That’s certainly your right and in some cases necessary, but I like to see hoteliers responding to positive reviews too.”
Rota agreed, explaining that as soon as Distrikt Hotel discovered the revenue benefits of strong reviews and guest ratings on OTAs, staff started treating OTAs like TripAdvisor and responding to reviews. For details check out OTAs, reviews and the new comp set: a New York hotel case study.
Note that not all OTAs allow management responses, as one listener pointed out when he asked, “Why doesn’t Booking.com allow us to respond to reviews?” Good question. Given that Booking.com generates more reviews than any other OTA, let’s hope the company rethinks this policy.
What do you mean by “respond selectively?”
During the webinar, I said it’s up to each hotel to decide which reviews to respond to, but I don’t think it’s necessary to respond to all reviews. Prioritize those that call for an apology, an explanation or a few words of appreciation.
Says Attardi of B.F. Saul, “Our rule is that we only respond if a review is specific enough whereby our response would add value to the experience of future users/guests, and that applies to both positive and negative reviews. We find that very few of the reviews meet our criteria for response, but we still respond if we deem it necessary.”
How important is the number of reviews our hotel has on an OTA?
Obviously the quality of reviews is most important, but volume helps too. According to Anderson of Expedia, “Data from global hotel transactions in December 2012 suggests hotels with more than 50 reviews had a 1.4% higher take-up rate [conversion rate] than all hotels for the same period.”
In our last webinar, Climbing TripAdvisor’s Popularity Index, we learned that review volume is a key ingredient to TripAdvisor rankings.
And recently Sam Fulton, senior vice president in charge of retail at Orbitz Worldwide, told ReviewPro’s Barb Delollis, “Clearly, hotels with no reviews or a limited number of reviews normally translate into hotels with lower volume … It’s hard to image someone making a booking without having some sense of what other consumers are saying about that property.”
How can we encourage guests to write a review on OTAs?
Ah, the age-old question. When I asked our panelists during the webinar, Rota said that she mostly leaves the solicitation of reviews to OTAs because they do a good job by sending a follow-up email. However, she said, “The more you respond to reviews the more people will leave them. People like to see hotelier’s response, crave it sometimes. [And] at checkout if a guest says what a great stay they had we prompt them to share it.”
Said Anderson in a follow-up email, “When you interact with your customers, we recommend that you encourage them to post a review. We even offer a hotel review card [see image] that you can print out and give you your guests.”
Of course, as I’ve said in previous blog posts and webinars, the most effective way to generate reviews is organically: by exceeding expectations and creating remarkable, memorable experiences. For more tips check out ReviewPro’s guide, How to Encourage Guest Reviews for your Hotel.
With Google Hotel Finder and [soon to be released] TripAdvisor Connect using a cost-per-click rather than a commission model, isn’t it cheaper to focus on them rather than paying high commissions to OTAs?
That depends. With the cost-per-click model you bid on placement and pay a fee for every click-through to your website or booking channel. So even if no booking is made, you still pay. With the commission model you pay a commission only if a booking is made through the OTA.
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CPC fees are typically a fraction of commission fees, but a click does not guarantee a booking. In fact, it can take dozens or even hundreds of clicks to make a booking, depending on how well you convert site visitors to bookers. Also, OTAs and big brands invest heavily in CPC, driving up costs and making it difficult for smaller players to compete.
The only way to really decide which model is most profitable for your hotel is to test out various channels and compare the ROI. Consult a web marketing company that specializes in hotels to help you determine the best option. But rather than an either/or solution, it’s likely a matter of finding the optimal combination of cost-per-click and commissions that generates the highest profitability.
Are Expedia guest ratings and rankings based on Expedia reviews only or do they include TripAdvisor reviews?
I forwarded this question to Anderson. His reply: “Both Expedia and Hotels.com reviews are used to calculate the overall guest rating. The guest rating does not include TripAdvisor reviews.” Mystery solved.
Why doesn’t Expedia delete old reviews? My hotel has been under different changes, managements and brands, but old comments remain.
Good news here from Anderson: “Expedia deletes reviews prior to a rebranding or major renovation completion. Certain criteria apply, so please speak to your market manager if you are interested.”
Can we set up review alerts to go to our email inbox like we do on TripAdvisor?
“That’s a great suggestion,” said Anderson, “and one we have heard from a few partners. It’s on our list of feature requests for future engagement.” Stay tuned.
And so ends our spotlight on OTAs! To view the webinar, click here.
Download Guide: Basics of Managing Online Reviews for Hotels
And for more information about optimizing your positioning on OTAs, check out VFM Leonardo’s great new eBook, Don’t Shy Away From OTAs.
