Are customers’ reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning [Summary]

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Date
2020-10-25
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Publisher
Virginia Tech
Abstract

The research implies that hotel competition is shifting from unit profit margin to volumes and higher occupancy rates since the increasing importance of user-reviews’ online visibility. For that reason, it is suggested for hotel owners especially have smaller ones, should utilize ‘socially enhance recommendations’ to reinforce their online visibility using infomediary platforms and social media. However, it does not mean simply increase visibility. Manager should be careful and analyze what are their reviewers’ demographic and personal traits so that they can concentrate on delivering information about their positioning, trends in competition, etc. Also, it is recommended to develop an IT-based tool and organizational routine to help integrating information from different social media to gain economic value.

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Keywords
Online visibility, Small and medium hotels, Market positioning, Localization outside popular destinations
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