Average Scores Integration in Official Star Rating Scheme

Purpose: Evidence suggests that electronic word-of-mouth (eWOM) plays a highly influential role in decision-making when booking hotel rooms. The number of online sources where consumers can obtain information on hotel ratings provided has grown exponentially. Hence, a number of companies have developed average scores to summarize this information and to make it more easily available to consumers. Furthermore, official star rating schemes are starting to provide these commercially developed average scores to complement the information their schemes offer. The purpose of this paper is to examine the robustness of these systems. Design/methodology/approach: Average scores from different systems, and the scores provided by one rating site were collected for 200 hotels and compared. Findings: Findings suggested important differences in the ratings and assigned descriptive word across websites. Research limitations/implications: The results imply that the application of average scores by official organizations is not legitimate and identifies a research gap in the area of consumer and star rating standardization. Originality/value: The paper is of value to the industry and academia related to the examination of rating scales adopted by major online review tourism providers. Evidence of malpractice has been identified and the adoption of this type of scales by official star rating schemes is questioned.Peer reviewe

The influence of e-word-of-mouth on hotel occupancy rate

Purpose Online consumer reviews have become increasingly important for consumer decision-making. One of the most prominent examples is the hotel industry where consumer reviews on websites, such as Bookings.com, TripAdvisor and Venere.com, play a critical role in consumers’ choice of a hotel. There have been a number of recent studies analyzing various aspects of online reviews. The purpose of this paper is to investigate their effects in terms of hotel occupancy rates. Design/methodology/approach This paper measures through regression analysis the impact of three dimensions of consumer reviews (i.e. review score, review variance and review volume) on the occupancy rates of 346 hotels located in Rome, isolating a number of other factors that might also affect demand. Findings Review score is the dimension with the highest impact. The results suggest that after controlling for other variables, a one-point increase in the review score is associated to an increase in the occupancy rate by 7.5 percentage points. Regardless the review score, the number of reviews has a positive effect, but with decreasing returns, implying that the higher the number of reviews, the lower the beneficial effect in terms of occupancy rates is. Practical implications The findings quantify the strong association of online reviews to occupancy rates suggesting the use of appropriate reputational management systems to increase hotel occupancy and therefore performance. Originality/value A major contribution of this paper is its comprehensiveness in analyzing the relation between online consumer reviews and occupancy across a heterogeneous sample of hotel

Selling Rooms Online: The Use of Social Media and Online Travel Agents

Purpose – This paper aims to focus on the reason why hoteliers choose to be present in online travel agent (OTA) and social media web sites for sales purposes. It also investigates the technological and human factors related to these two practices. Design/methodology/approach – The research is based on a survey sent to a wide range of hotels in a Swiss touristic region. The empirical analysis involves the specification of two ordered logit models exploring the importance (in terms of online sales) of both social media and the online travel agent, Booking.com. Findings – Findings highlight the constant tension between visibility and online sales in the web arena, as well as a clear distinction in social media and OTA web site adoption between hospitality structures using online management tools and employing personnel with specific skills. Practical implications – The research highlights the need for the hospitality industry to maintain an effective presence on social media and OTAs in order to move towards the creation of a new form of social booking technologies to increase their visibility and sales. Originality/value – This research contributes to understanding the major role played by OTAs and social media in the hospitality industry while underlining the possibility of a major interplay between the two

Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research

This paper reviews the published articles on eTourism in the past 20 years. Using a wide variety of sources, mainly in the tourism literature, this paper comprehensively reviews and analyzes prior studies in the context of Internet applications to Tourism. The paper also projects future developments in eTourism and demonstrates critical changes that will influence the tourism industry structure. A major contribution of this paper is its overview of the research and development efforts that have been endeavoured in the field, and the challenges that tourism researchers are, and will be, facing

The Influence of Quality on eWOM: A Digital Transformation in Hotel Management

612324There is no doubt that the use of Internet for purchasing products and services has constituted a crucial change in how people go about buying them. In the era of digital transformation, the possibility of accessing information provided by other users about their personal experiences has taken on more weight in the selection and buying processes. On these lines, traditional word-of-mouth (WOM) has given way to electronic word-of-mouth (eWOM), which constitutes a major social change. This behavior is particularly relevant in the services area, where potential users cannot in advance assess what is on offer. There is an abundant literature analyzing the effects of eWOM on different variables of interest in this sector. However, little is known about the factors that determine eWOM. Thus, the main objective of the present paper is to analyze the impact of two variables (objective quality and perceived quality) on eWOM. Both of them are crucial for potential customers in the process of finding hotel accommodations and they can motivate people to make such comments. The results demonstrate that these variables truly have a significant impact on whether or not users make comments on line. Moreover, it proved possible to observe certain differences according to the profile of the tourist involved and the destination where the hotel is located. In the current changing environment, this information is of great use for hotel managers in order to design strategies according to the type of guest they wish to attract.S

Innovative value-based price assessment in data-rich environments: Leveraging online review analytics through Data Envelopment Analysis to empower managers and entrepreneurs

This work introduces, develops, and empirically applies an innovative approach aimed at assessing selling prices based on the value perceived by the customers, as measured by electronic word-of-mouth (eWOM) in the guise of online reviews. To achieve this aim, it applies a constant return to scale Data Envelopment Analysis (DEA) approach where the price is the input, and the value attributes are the outputs measured through eWOM in the form of online reviews. We empirically apply the model to the hotel sector by considering both the prices and the service attributes (i.e., staff, location, cleanliness, comfort, facilities and free wi-fi) of 364 hotels based in two leading Italian tourism destinations: Milan and Rome. Our findings suggest that online review analytics can be suitably embedded into analytical models to assess prices. The index developed innovatively supports value-based pricing by means of online review analytics and it is easy-to-perform, and parsimonious as it is based on widely available information on the Internet

International Management of Customer Orientation

This study investigates the role of customer orientation of service employees (COSE) and its influence on customer satisfaction and on electronic word of mouth (e-WOM), with a focus on international management. An empirical study was conducted amongst hotel customers with a final valid sample of 265 respondents. Digital capabilities have been included in the COSE model for the first time. Findings indicate that digital capabilities have a positive influence on customer satisfaction that is mediated by COSE. This study has also compared differences between international and national firms and also considered family businesses and non-family businesses. Results show that international hotels have a higher level of COSE than national hotels, mainly due to the technical skills of the employees, and the presence of a higher level of COSE in family businesses (FBs) rather than in non-family businesses (NFBs). Some contributions to academia and to international management have been discussed