The document discusses the importance of reputation management for hotels on social media and online travel agencies. It states that reviews have a large impact on future guest bookings and satisfaction, which can increase prices and revenue. The revenue manager is responsible for considering reviews and other factors like time of year when setting pricing policy. A new metric called the Quality Penetration Index measures a hotel's review performance compared to competitors. While online reputation is important for revenue, it is just one factor for revenue managers alongside occupancy and seasonality.
2. Nowadays, social medias tend to be the perfect
tool for conveying hotel’s image.
Reviews have an important impact on purchase
decisions of future guests.
Hence, social media could be used as a lever to
revenue growth by improving customer’s
satisfaction.
3. It is the Revenue Manager who is in charge of this task.
Nowadays, reviews made on OTA (Online Travel
Agencies) like Expedia, Hotels.com… are a component
in guest’s decision.
Thus, Revenue Manager has to take into account these
reviews because an increase in review scores leads to
increase the odds of being booked, which can increase
the price.
RM represent the new generation, the third one, who
have to mix with marketing (demand creation), demand
capture (sales), and demand management (RM), in order
to be optimal.
4. The new measurement will be the QPI (Quality
Penetration Index).
It is computed using this formula:
Global Review Index- My hotel
Average Global Review Index- Competitive Set
It measures for a hotel, the impact of the reviews
compared to the set of its direct competitors.
5. Online Reputation Management could be
considered as the new revenue maximization but
we have to temperate this assertion
Indeed, RM has to integrate reviews in the pricing
policy of the hotel but it is not the only thing to
considerate.
In fact, it is just another component, as period of
the year, occupancy of the hotel…that revenue
management has to be careful.