HSMAI | March 18, 2024

By Monika Morrobel, CRME, CHDM, Area Director of Revenue Management, Pyramid Hotel Group, HSMAI Revenue Optimization Advisory Board Member

  1. Recognition of Reviews as Influential Decision Drivers: Consumer behavior is heavily influenced by reviews, with a staggering 95% of potential guests considering them before making a booking.
  2. Direct Correlation Between Reviews and Revenue: Even marginal improvements in positive reviews can lead to substantial revenue gains, with a mere 0.5% increase potentially translating into a remarkable 25% boost in revenue. This underscores the tangible impact of reputation management efforts on the bottom line.
  3. Proactive Engagement with Reviews: Revenue leaders must spearhead efforts to raise awareness about the significance of reviews within their organizations. By highlighting the correlation between reviews and financial performance, revenue professionals can galvanize action across departments to improve review ratings.
  4. Accountability and Ownership: Operational teams, particularly general managers, play a crucial role in maintaining and enhancing a hotel’s reputation. It’s imperative to hold them accountable for addressing issues that impact review scores, fostering a culture of continuous improvement in service delivery.
  5. Comprehensive Organizational Approach: Reputation management should not be viewed in isolation but rather as a collaborative endeavor that involves revenue leaders, marketing and sales teams, and operational stakeholders. By analyzing data comprehensively, organizations can gain insights into the intricate relationship between service quality, reviews, and pricing strategies.

Go Deeper:

Questions for Your Team:

  1. How much involvement does RM currently have in reputation management, and who “owns” the process?
  2. What responsibility should RM have in the process?
  3. Is RM currently making strategy decisions based on the state of reputation management, and should they?
  4. Who is monitoring the revenue impact of reputation management?

Read the original article here.