How Your Online Reputation Impacts Your Revenue

20th July 2015

Does Online Reputation Impact Travelers?

Influence of Online Reputation

of travelers indicate that their decisions are highly influenced by reviews & other user generated content. The average number of websites travelers visit before booking a trip. of consumers say they won’t book a hotel if it has zero reviews.

of travelers changed their primary choice during the booking process after using social media and review sites.

(e-tailing group)!

(Expedia Media Solutions/Compete)!

(PhoCusWright)!

(World Travel & Tourism Council) !

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92%

20

53%

33%

Measuring the Impact of ORM

•  Aggregate hundreds of millions of reviews & social media mentions, in 45+ languages, on 100+ of the most relevant OTAs, review websites and social media platforms.

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Global Review IndexTM Sentiment Analysis

Leveraging Guest Intelligence

Data/API Revenue

Optimizer Guest

Surveys Reputation

Management

Guest Intelligence

Restaurants

Management Companies

Hotels

   

Investment &

Consulting

Associations & Representation

Companies

Destinations & Star Ratings

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Clients & Partners

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Leading Destinations Rely on ReviewPro

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What Business Are You Really In?

Hotel Business…?

Experience & Expectation

Management Business

P Product

P Promotion

P Price

P Place

The Old Focus of Marketing…

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…Has Changed Forever

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The Secret to Success Today

P roduct  

P romotion  

P rice  

P lace  

4 P’s  E xperience  

E vangelism  

E xchange  

E veryplace  

4 E’s  

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Reputation = Revenue

Guest Satisfaction

Revenue

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ORM Impacts All Segments of Lodging

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Impact of Guest Intelligence

Guest Intelligence = ORM + GSS

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Online Reputation Guest Surveys

A Measurable Impact on Revenue & Valuations

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A 1 point increase in a hotel’s Global Review Index™ equals up to:

+0.89% in ADR

+0.54% in Occupancy

+1.42% in RevPAR

Client Success Story

•  Jurys  Inn,  located  in  the  UK  &  Ireland,  have  31  hotels  and  have  implemented  our  Guest  Intelligence  pla=orm  (ORM  &  GSS)  across  their  enDre  estate.  

•  Since  acDvaDng  the  TripAdvisor  Review  CollecDon  Program  through  ReviewPro,  they  have  significantly  increased  review  volume  for  the  group  on  TripAdvisor.    

•  The  group  improved  their  average  TripAdvisor  ranking  and  27  hotels  have  increased    from  a  3.5-­‐star  raDng  to  a  4-­‐star  raDng  or  above.    

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Guest Intelligence Across the Organization

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Revenue & Distribution

Quality & Operations

General Manager

Food & Beverage

Sales & Marketing

Front Desk

Housekeeping & Maintenance

Guest Intelligence Across the Enterprise

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Finance …

PMS

CRS

Revenue Management

Channel Manager

Booking Engine

CRM Guest Surveys

Marketing Campaigns

Investments

Internal Systems

Business Intelligence

Open API & Flexibility

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Pre-Stay

PMS

Guest Intelligence

During Stay Post-Stay        

                       

CRM

        REVENUE MANAGEMENT

                …  

How Clients Leverage Guest Intelligence

Turning Insight into Action

•  Combine reputation analytics with STR data to increase ADR & RevPAR.

•  Use Semantic Analysis to identify areas to focus operational & service improvements.

•  Respond to tweets within 15min to serve guests before, during & after stay.

•  Use social media & reviews to identify trends & follow up with detailed internal surveys.

•  Go through guest satisfaction check at guest check-out to improve online reviews post-stay.

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Turning Insight into Action

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•  Reporting & benchmarking to board of directors & for individual bonuses.

•  Email from CEO upon check-out thanking client & asking if everything was OK.

•  Share reports & use alerts with frontline staff and in team/departmental meetings.

•  Analyze potential investment opportunities.

•  Identify areas for staff training, education & support.

2015 PwC Online Reputation Report

2015 PwC Online Reputation Report

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EMEA & India

48 Cities 11,000 hotels

3, 4 & 5 star

   

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GRITM Performance by Region/Star Rating

•  Hotels in Eastern Europe topped the GRITM score in all categories.

•  Large differences between top & lowest performing hotels.

Top Performers by City: GRITM , Service & Value

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•  Cape Town performing best across all attributes.

•  Edinburgh & Lisbon only cities from Western Europe in top 10.

GRITM Service Value Rank City Rating   Rank City Rating   Rank City Rating

1 Cape Town 86.0%   1 Cape Town 88.7% 1 Cape Town 86.4%

2 Vilnius 84.6%   2 Vilnius 86.7% 2 Prague 84.9%

3 Johannesburg 84.2%   3 Johannesburg 86.7% 3 Budapest 84.9%

4 Edinburgh 83.7%   4 Edinburg 85.8% 4 Abu Dhabi 84.9%

5 Marrakesh 83.5%   5 Warsaw 85.7% 5 Johannesburg 84.8%

6 Prague 83.4%   6 Abhu Dhabi 85.4% 6 Vilnius 84.7%

7 Warsaw 83.0% 7 Marrakesh 85.2% 7 Riga 83.9%

8 Lisbon 82.7% 8 Zurich 85.1% 8 Beirut 83.6%

9 Riga 82.6% 9 Lisbon 84.8% 9 Warsaw 82.8%

10 Abu Dhabi 82.3% 10 Riga 84.4% 10 Marrakesh 82.7%

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Comparable Rankings for Australia

•  On average, Victoria hotels rate even higher than in Melbourne.

 

Rank City Rating

1 Melbourne 83.4%

2 Brisbane 82.8%

4 Sydney 82.0%

5 Adelaide 80.7%

 

Service   Rank City Rating

1 Melbourne 86.8%

2 Brisbane 85.7%

3 Sydney 85.3%

6 Adelaide 84.1%

 

Value   Rank City Rating

1 Melbourne 83.8%

2 Brisbane 83.2%

3 Adelaide 82.3%

4 Sydney 81.8%

GRITM  

Break-down by Star Rating & Response Rate

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0.0%  

20.0%  

40.0%  

60.0%  

80.0%  

100.0%  

GRITM  

All  hotels  

3-­‐star  

4-­‐star  

5-­‐star   0.00%  5.00%  10.00%  15.00%  20.00%  25.00%  30.00%  35.00%  

Response  Rate    

All  hotels  

3-­‐star    

4-­‐star    

5-­‐star    

•  Melbourne highest GRITM for 3* (78.0%) but Brisbane highest for 4* (84.1%) & 5* (91.0%).

•  Both overall rating & management response rates higher for 5* hotels.

Best & Worst Rated Attributes

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•  “Location” is best rated attribute in almost all cases.

•  “Room” is worst rated attribute overall, with “value” common for 5-star.

Sydney Melbourne Brisbane Adelaide

Best Index Best Index Best Index Best Index

All hotels Location 92.2% Location 92.5% Location 90.3% Location 90.1%

3-star Location 88.4% Location 90.4% Location 87.2% Location 86.6%

4-star Location 92.8% Location 92.4% Location 91.1% Location 91.1%

5-star Location 95.4% Location 95.7% Cleanliness 96.2% Location 96.6%

Sydney Melbourne Brisbane Adelaide Worst Index Worst Index Worst Index Worst Index

All hotels Room 81.9% Room 83.7% Room 82.5% Room 79.4%

3-star Room 71.4% Room 74.9% Room 74.1% Room 70.5%

4-star Room 83.0% Value 84.4% Value 84.2% Room 82.5%

5-star Value 86.4% Value 88.5% Value 89.1% Value 87.6%

The Importance of Storytelling

The Experience is the Story

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Q & A

@rjfriedlander @ReviewPro

RJ  Friedlander,  CEO  rfriedlander@reviewpro.com