The differential effects of the quality and quantity of online reviews on hotel room sales [Summary]

While it is generally accepted that hotel reviews and ratings posted on travel websites drive hotel sales and revenue, the effects of reviews can be parsed into volume (the number of reviews about a hotel) and valence (the ratings in those reviews). This study finds that the two chief aspects of reviews—volume and valence—have different effects on hotels in various chain scale segments. Industry reports and academic studies show that online reviews influence customers’ choice of hotel and thus drive hotels’ revenue per available room (RevPAR). However, the valence of those reviews has a greater effect on luxury hotels’ RevPAR, while the volume of reviews has a greater effect on lower-tier hotels.