The Impact of  Social Media on Lodging Performance

Anderson, Chris K.

The Impact of Social Media on Lodging Performance

dc.contributor.author	Anderson, Chris K.	en
dc.date.accessioned	2018-10-12T18:06:56Z	en
dc.date.available	2018-10-12T18:06:56Z	en
dc.date.issued	2012-11	en
dc.description.abstract	Social media has been touted as having an increasingly important role in many aspects of the hospitality industry, including guest satisfaction and process improvement. However, one of the more intriguing aspects of social media is their potential to move markets by driving consumers’ purchasing patterns and influencing lodging performance. In the absence of a comprehensive attempt to quantify the impact of social media upon lodging performance as measured by bookings, occupancy, and revenue, this report uses the unique position of Cornell’s Center for Hospitality Research to combine data from three CHR research partners (ReviewPro, STR, and Travelocity), and two other data providers (comScore and TripAdvisor) in a first attempt at determining ROI for social-media efforts. The analysis finds the following. First, the percentage of consumers consulting reviews at TripAdvisor prior to booking a hotel room has steadily increased over time, as has the number of reviews they are reading prior to making their hotel choice. Second, transactional data from Travelocity illustrate that if a hotel increases its review scores by 1 point on a 5-point scale (e.g., from 3.3 to 4.3), the hotel can increase its price by 11.2 percent and still maintain the same occupancy or market share. Third, to measure the impact of user reviews on hotel pricing power, consumer demand, and revenue performance the study uses matched-sample data from ReviewPRO and STR. By matching ReviewPRO’s Global Review IndexTM with STR’s hotel sales and revenue data, a regression analysis finds that a 1-percent increase in a hotel’s online reputation score leads up to a 0.89-percent increase in price as measured by the hotel’s average daily rate (ADR). Similarly this 1-percent increase in reputation also leads to an occupancy increase of up to 0.54 percent. Finally, this 1-percent reputation improvement leads up to a 1.42-percent increase in revenue per available room (RevPAR)	en
dc.identifier.uri	http://hdl.handle.net/10919/85353	en
dc.language.iso	en	en
dc.publisher	The Center for Hospitality Research	en
dc.rights	In Copyright	en
dc.rights.uri	http://rightsstatements.org/vocab/InC/1.0/	en
dc.subject	Social Media	en
dc.subject	hotel performance	en
dc.subject	revenue	en
dc.subject	RevPar	en
dc.title	The Impact of Social Media on Lodging Performance	en
dc.type	Article	en