Online reputation directly affects revenue per room in hotels – so what to do about it?


Want to get some hard numbers as to how influential a hotel’s reputation can be to the bottom line? Well, here you go.

A one-point increase in a hotel’s 100-point Global Review IndexTM (GRI), for example, leads up to a 0.89% increase in price (ADR), a 0.54% increase in occupancy, and a 1.42% increase in revenue per available room (RevPAR).

This seminal study, by Chris Anderson at Cornell University’s Center for Hospitality Research, based on more than 31,000 monthly observations over 2.5 years on mid-scale, up-scale, and luxury hotels in 11 cities in the North America and Europe, used review data from ReviewPro and reporting from STR to quantify the impact of online reputation on rates, occupancy, and RevPAR. (Read More)

Published In: http://www.tnooz.com  By: Josiah Mackenzie

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About hospitalitytechnology

Technology is making greater and greater inroads into our lives. Right from when we wake up in the morning to when we head to sleep – we cannot imagine a life without the gadgets and gizmos that make life easy and interesting. When we travel and stay in hotels, our expectations are no different. We expect all the technological amenities we easily access at home if not more. The hospitality industry in increasingly accessing technology to wow guests, optimize their use of manpower, control hotel functions in an integrated manner and on the whole reduce costs while increasing efficiency. This blog is meant to track these technological changes happening in the hospitality sector. The growing move towards sophisticated hotel ERP, the growing use of cloud computing, the rapidly changing customer facing devices – smart phones and iPads, the increasing security concerns and more. Expect to find interesting articles, whitepapers, thoughts, and observations. Feel free to comment and even mail us content that you don’t mind posted here. Happy reading!
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