2. What is ReviewPro?
Founded in 2008 with the idea that social medias could be used to
drive revenue growth by increasing guest satisfaction.
Today: it has thousands of hotel clients in more than 70 countries
around the world
Analysis, customer intelligence, competitive benchmarking and
automative reports all provide insight for action.
Daniel Edward Craig invites experts in order to discuss highlights of
the research, its implications and how hotels can use these data to
optimize rates, distribution channels and revenue.
Measure of guest satisfaction through guests’ reviews
Competitors analysis through competitive quality index
Performance measure
3. Three guests…
Chris Anderson, Associate Professor in Cornell
University School of Hotel Administration
Victoria
Edwards, Co-founder of Buckhiester
Management
Fernando
Vives Soler, Global Director of Revenue
management for Meliã Hotels International
4. What is GRI?
« GRI » stands for Global Revenue Index which is the « Online
guest satisfaction index ».
Has more than 1,000 of clients today
Can be used for any types of hotels
Has the ability to analyze reviews from more than 90 OTAs and
guests reviews’ websites
It takes into account a quantitative analysis or review scores
from all major OTAs and reviews’ websites.
GRI is used to track operational and service excellence as well
as performance compared to direct competitors Analyze an
establishment improvement over time
5. The results
1st analysis from Cornell University, the 1st hospitality
management program which is now world leader in this field:
Guests’ reviews and social medias used a public data showing
relationship between reviews and bookings
-Impact of Users Generated Content (UGC) and social medias
upon guests’ purchasing decisions and then hotel performance
Relationship between online reputation and hotel performance
through three points:
- Performance (Revenue Per Available Room)
- Pricing power (Average Daily Rate)
- Occupancy (Demand)
6. Analysis of Travelocity which is a major North American Online
Travel Agency
Increase in review score by 1 point (3.8 to 4.8) increases the
odds of being booked by 13.5% and can increase price by 8%
while maintaining probability of purchase and market share
Consistent results regarding the impacts with several other OTAs
7. 2nd analysis from Victoria Edwards:
Develops a new synergie for the Revenue Management finding
out a correlation between Marketing (demand creation), Sales
(demand capture) and Revenue management (demand
management).
Three generations of Revenue managers:
- Generation 1: revenue manager is the reservation manager
-Generation 2: manager more sophisticated, with more tools and
more education
-Generation 3: Actually combines all the elements, being the
most efficient
8. Customer purchase is based on Value
Value = Price + Product (service and quality)
You can compare your hotel value with the competitive set
Indexes from review sites provide pricing signals
You have to dedermine the « weight » you place on metrics
provided by reputation management reports: how to use these
metrics?
Value rating on TripAdvisor, Expedia… The quality of value
index will be a driving force to your pricing decision
9. - Compare variance month over month
-Compare GRI to your pricing strategy during the same period
(rate shopping tool)
- Compare your STR index balance to GRI
- Compare your GRI with the competitive set GRI
- Compare your forecast occuracy with your GRI variance
- Drill down to see how your rooms score
-Look at all of these metrics in terms of forward looking indicators
such as the rate shopping tools and the predictive forecast sites
10. 3rd analysis from Fernando Vives Soler: Case study of Meliã
Hotels International
You have to identify the RM tools you can use to have a
competitive advantage within a hospitality market more and more
challenging and competitive
Challenging times because the demand isn’t really growing
except in the Middle-East and North Africa
How to push the hotel pricing policy?
Use the new performance indicator such as the « Quality
Penetration Index » (QPI) instead of the traditional and former
performance indicators (Market Penetration Index, Average Rate
Index, Revenue Generator Index…)
QPI= Global Review Index of my hotel / Average Global Review
Index of the competitive set
11. Key takeaways
Reviews drive revenue
The Revenue manager role must become more and more
strategic and analytical
Review metrics must be integrated as a key component of
revenue management strategy
Comparison of your review index (with rate, occupancy and
RevPar indexes…) is paramount to maximize revenue and stay
ahead of competition (finding optimal rates, positioning in the
marketplace…)
12. Conclusions
Controlling your online reputation is definitely essential and
ReviewPro is a great tool to help you do that. Through this
competitive tool, you have the opportunity to react more quickly
to guests’ feedbacks and find solutions when it is needed.
In a word, revenue is directly linked to reputation as a good
online reputation with positive guests’ reviews has a positive
impact on demand, guest satisfaction and, finally, revenues.