The document summarizes key findings from three analyses on the relationship between online guest reviews and hotel performance metrics.
[1] A Cornell study found a positive correlation between higher review scores and increased booking odds, ability to charge higher rates, and higher RevPAR. A 1-point increase in reviews led to a 13.5% higher booking rate and 8% higher prices.
[2] Revenue management must integrate demand creation, capture, and optimization. Review metrics should be compared to pricing strategies and forecasts to optimize performance.
[3] Meliá Hotels case study shows integrating reputation metrics into revenue management drives higher ADR, demand and satisfaction. Review indexes should be compared to rates, occupancy and
2. • Research from Cornell's Center for Hospitality
• Research that highlights the correlation between
aggregate guest ratings, as defined by ReviewPro's
Global Review Index™, and hotel rates and revPAR.
3. Daniel Edward Craig :
• brings in the experts to discuss highlights of the research
• its implications
• how hotels can use this data to optimize rates,
distribution channels and revenue
4. : Associate Professor, Cornell School of
Hotel Administration
• He will discuss the results of the Cornell study, conducted in partnership
with ReviewPro and STR Global, which examines the correlation
between aggregate review scores and a hotel's demand, pricing power
and revPAR.
Co-founder, Buckhiester Management
• She will show how to turn this knowledge into power by integrating
review metrics into revenue management strategies and tactics.
Global Director of Revenue Management, Meliá Hotels International
• He will show how Meliá is pioneering the integration of reputation
metrics and revenue management to drive higher ADR, demand and
guest satisfaction.
5. The 1st analysis from Cornell University, the first hospitality
management program and now leader in this field:
Social media user generated impact on performance:
• An important part of the research process
• Impact of reviews on purchase decision
• Impact of online reputation upon performance (
Occupancy, ADR, revPar)
• Impact translated into pricing power demand and overall
performance
6. • Positive correlation between the analysis of good
reviews and revenue gains
• Increase in reviews score by 1 point(3.8 to 4.8) increases
the odd of being booked by 13.5% and can increase the
price by 8% and maintain probability of purchase, market
share
• 1% increase in review score will result in an increase of
1% in average RevPar
7. The second analysis from Victoria Edwards:
• New synergy, new approach of the revenue
management, combines 3 points:
• the demand creation
• demand capture
• demand management = optimal RM
8. • 3generations of RM:
• Old view/Generation 1: revenue manager= reservation
manager
• Generation 2: more sophisticated, more tools, more
education
• Generation 3: combines all of the elements, technical
tools, online marketing and sales functions. The best
one= analytical function
9. • Compare variance month over month
• Compare GRI to your pricing strategy during the same period
• Compare your STR index balance to GRI
• Look at your GRI versus comp set GRI
• Compare your forecast accurancy 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
• In the 3rd analysis, it is a case study which demonstrates how
we have to manage the revenue management department and
reputation metrics to drive higher ADR, demand and guest
satisfaction.
10. • Quality penetration index or Competitive quality index by
review Pro
• Allowing to measure the guest reviews performance
relative to competitors
• Track the direct competitors
11. • It takes into account the impact of the guests satisfaction in
pricing and revenue
• Nowadays, reviews are very important for people, they rely on
it , and there is a high increase of the User Generated
Content, thus we don’t have to neglect their impact
• As consequence, the role of revenue manager must become
even more strategic and analytical
• Review metrics must be used and integrated as a key
component of revenue management strategy
• To maximize revenue and to stay ahead of the competition,
compare your review index with rate, occupancy, and RevPar
indexes to find optimal rates and positionning in the market
place