Can receiving managerial responses induce more user reviewing effort? A mixed method investigation in hotel industry

The purpose of this study is to explore factors contributing to users' reviewing effort in the online review platform and understand the mechanism behind the effect. Based on a mixed method including secondary data analysis and experimental data analysis, the results indicate the following. (1) A user receiving more managerial responses tends to exert more reviewing effort. (2) The number of high-quality user opinions (i.e., expert reviews) for a hotel negatively moderates the influence of the number of managerial responses on user reviewing effort. (3) The sense of reciprocity mediates the influence of the number of managerial responses on future reviewing effort. (4) The mediation process is attenuated amongst users facing numerous high-quality user opinions. This study contributes to the literature of managerial response and online user engagement in the context of travel websites.     

Do online hotel rating schemes influence booking behaviors?

Travelers’ hotel booking behaviors increasingly depend on peers' opinions and online ratings. This study investigates the effects of online hotel ratings on travelers' attitudes toward the hotel and booking intentions, using a 2 × 2 experimental research design. The results suggest that online rating lists are more useful and credible when published by well-known online travel communities (e.g., TripAdvisor). More favorable attitudes toward a hotel and higher booking intentions emerge when the hotel appears in best hotels lists. Finally, for the entries on best hotels lists, better attitudes and higher booking intentions result if the list is published on a well-known online travel community (Tripadvisor), whereas for entries on a worst hotel list, attitudes and booking intentions decrease even further if the list appears on TripAdvisor.     

Dealing with pandemics: An investigation of the effects of COVID-19 on customers’ evaluations of hospitality services

The hospitality industry is highly vulnerable to pandemics. However, little is known about how pandemics alter travelers' evaluations of hospitality services. Therefore, this study investigates the changes in travelers' expectations and perceptions of hotel services during different stages of the novel coronavirus 2019 (COVID-19) pandemic. 98,163 Chinese hotel reviews were collected and scrutinized via text mining and sentiment analysis techniques to derive new implications for service optimization. The results reveal shifts in consumers’ evaluations well beyond hygienic requirements. Insights obtained from this research can help guide hospitality practice in organizing its priorities during acute pandemic situations and adjusting to possibly longer-lasting shifts in consumer preferences.     

Posting reviews on OTAs: Motives,rewards and effort

High-quality reviews are crucial for users and websites. Many online travel agencies (OTAs) offer online incentives to encourage high-quality reviews. However, the effect of these incentive programs on users' posting effort remains unclear. Our analyses of a dataset collected from a leading OTA present the following: (1) users with more digest reviews tend to exert more effort when posting subsequent reviews; (2) an increasing number of digest reviews for a hotel induces subsequent users to exert additional posting effort; (3) the marginal effect of an additional digest review on posting effort is decreasing; (4) users with high expertise tend to exert extra posting effort when in a fierce competition. This study concludes by presenting theoretical and managerial implications for both research and practice.     

The impact of language style on consumers′ reactions to online reviews

The current research examines the novel impact of an online review's language style (figurative vs. literal) on consumers' attitudes towards a hotel and their reservation intention. Previous marketing research advocated for the use of figurative language to advertise hedonic consumptions. Yet, we found that, in the context of online hotel reviews, figurative language doesn't offer significant advantages in terms of persuasive power. Specifically, our findings indicate that, when a review is posted by a reviewer with low expertise level, consumers actually exhibit lower levels of attitude and reservation intention if the review is written in figurative (vs. literal) language. When the reviewer possesses high expertise level, the language style effect was attenuated. Finally, serial mediation tests show that the causal link between language typicality → perceived reviewer expertise explains the language style effect on consumers' pre-purchase evaluations.     

The moderating role of context in the effects of choice attributes on hotel choice: A discrete choice experiment

This study used discrete choice modeling to identify the moderating role of context in the effects of cognitive, affective, and sensory attributes on hotel choice. To evaluate a hotel consumer's choice for attributes in a different choice context (leisure vs. business), a stated preference experiment based on D-optimal design was conducted using both a multinomial logit (MNL) model and a random parameter logit (RPL) model. The results show that while leisure travelers' choices for family vacation trips were more influenced by price and overall atmosphere than were business travelers', business travelers put an emphasis on room quality and comfort when on a business trip alone. The study demonstrates the trade-offs made by leisure and business travelers when choosing a hotel through discrete choice modeling. The findings provide hotel managers with important insights and implications in terms of target segmentation, product development, and marketing communication strategy.     

Let's hook up fast! Hotel reviews and Wi-Fi flaws

Free Wi-Fi connection is a prevalent service in the modern hotel industry. The effects of Wi-Fi services on customers' satisfaction have been investigated in existing literature. However, the attributes that lead to customers' negative reviews on hotels and the effects of these attributes on hotel ratings remain unexplored. Therefore, this article attempts to fill this gap by using a sample of 4800 reviews and estimating a Heckit model. This methodology allows us to model customers' decisions to write a negative review and rate a hotel simultaneously. The effects of Wi-Fi flaws on hotels' overall ratings are estimated and discussed. Moreover, important managerial implications are consequently derived. Reference dependence and sample selection bias also remain critical when analyzing hotel ratings.     

Relationships of Perceived Justice to Service Recovery,Service Failure Attributions,Recovery Satisfaction,and Loyalty in the Context of Airline Travelers

In recent years, hospitality and tourism researchers have presented their findings of many studies on website performance and evaluations. Although these prior studies have achieved a certain degree of success for assisting industrial practitioners to develop and maintain their websites, it remains largely unknown how consumers find a specific travel or hotel website. This paper reports a study that investigated the perceived importance of different channels for finding travel or hotel websites from an international travelers' perspective. Empirical results from 153 travel or hotel website users indicated that the Google search engine was the only channel that was perceived as important, and 47.4% of the respondents viewed up to three screens in the list of search results when using search engines. The paper should be of interest to industrial practitioners and academic researchers to understand better the behavior of users of travel and hotel websites during their website search procedure.     

The signaling effect of management response in engaging customers: A study of the hotel industry

Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.     

Using a Validation Process to Develop Market Segmentation Based on Travel Motivation for Major Metropolitan Areas

Studies on market segmentation based on travelers' push motivation have been conducted without implementing a statistically validated procedure for establishing the segmented markets. The purpose of this study is to identify validated traveler market segments by examining what travelers' push motivation dimensions are among the heterogeneity of travelers to a major metropolitan area. The six push motivation dimensions were extracted from the 20 motivation items by conducting factor analysis (i.e., Social/Interaction, Excitement/Fun, Relaxation, Sightseeing, Family/Friends, and Sports). Cluster analysis identified the three homogeneous groups of travelers. Subsequent discriminant analysis verified the existence of the three travelers' markets in the metropolitan area. Managerial implications are suggested for the three push motivation‐based segments.     

The effectiveness of managing social media on hotel performance

This paper investigates how managing online reviews affects hotel performance. An international hotel chain provided the hotel performance data and the online review data. A leading social media firm for the hospitality industry collected the online review data, which the hotel company purchased. The results indicate that overall ratings are the most salient predictor of hotel performance, followed by response to negative comments. The better the overall ratings and the higher the response rate to negative comments, the higher the hotel performance. Therefore, online reviews in social media, specifically overall rating and response to negative comments, should be managed as a critical part of hotel marketing.     

Capsule hotels: Offering Experiential Value or perceived as risky by tourists? An optimum stimulation level model

Capsule hotels are a novel Japanese approach to accommodation that arose in 1979. For most travelers outside Japan, however, the concept of capsule hotels is relatively new. They provide experiential value to the traveler; they also pose some risks. Travelers seeking familiarity view unfamiliar environments as riskier, and perceived risk has a negative influence on consumer behavior. This study aims to establish a behavioral model of capsule hotel visitors by incorporating optimum stimulation level (OSL), perceived risk, and experiential value into its analytical framework. A total of 276 respondents who stayed in a capsule hotel participated in the study. Findings suggest that the OSL has a positive effect on experiential value and perceived risk. Experiential value, in return, negatively affects perceived risk. Experiential value further plays a mediating role between perceived risk and OSL. We discuss theoretical implications and offer recommendations for capsule hotel operators.     

The signaling and reputational effects of customer ratings on hotel revenues: Evidence from TripAdvisor

This study aims to examine whether customer ratings and online reviews affect hotel revenues, and if so, to quantify the effects. To achieve this objective, we articulate the mechanisms grounded on reputation theories whereby customer ratings exercise the influence on hotel performance through reputational and signaling effects. Using customer rating data from TripAdvisor and hotel revenue data from Texas, we estimate fixed effects regressions and adopt a regression discontinuity design to separate the signaling effect of customer ratings from reputational effect. We found that the signaling effect of a 1-star increase is an increase of 2.2–3.0% in hotel monthly revenues whereas the reputational effect of a 1-star increase is an increase of around 1.5–2.3% in hotel monthly revenues. Our findings are robust across alternative model specifications and provide insightful implications for hotels to manage their customer ratings.     

Can Response Management Benefit Hotels? Evidence from Hong Kong Hotels

With the growing influence of online reviews, more hotels are adopting online response management, but whether this works and benefits a hotel has rarely been studied. In this research, we study the impact of response management on hotel online ratings using data retrieved from TripAdvisor with a focus on Hong Kong hotels. We find that (1) high class hotels are more likely to adopt response management; (2) there is no significant difference among different hotel classes in terms of response rate; and (3) targeted response management has a significant positive effect on hotel ratings. In addition, Asian customers tend to give lower ratings than Western customers. We outline specific implications for hotel managers and their online management and offer suggestions for future research based on the empirical findings.     

The relationship between price paid and hotel review ratings: Expectancy-disconfirmation or placebo effect?

Whilst there is extant research focusing on the link between hotel reviews and pricing there is scant attention paid to the impact of pricing on hotel review ratings. This paper presents a large scale study based on a novel dataset of more than 44,000 guest review ratings linked to the prices paid for rooms of an European hotel group. Through applying a panel regression analysis we reveal that expectancy-disconfirmation is generally stronger than the placebo effect and higher prices have a negative effect on review ratings, not only when assessing perceived value for money but also when evaluating perceived quality. We identify the trip and guest characteristics which impact on the price-review relationship. Findings provide hotel managers with key quantitative information for simultaneously calibrating quality and revenue targets. Substantial implications include an integrated approach for segmentation as a route to better manage pricing, revenue optimization and reputation.     

Exploring Tourist Perceived Value: An Investigation of Asian Cruise Tourists' Travel Experience

The present study explores Asian cruise travelers' perceived value of the travel experience and the effect of perceived value on satisfaction and behavioral intention. To measure Asian travelers' multi-dimensional perceived value, a cognitive-affective perceived value model was utilized. Survey items were adapted from cruise travel attribute items and SERV-PERVAL scales. Exploratory factor analysis was performed to identify travelers' cognitive and affective perceived value. Structural Equation Modeling (SEM) was conducted in order for researchers to examine how tourists' multi-dimensional perceived value construct affected travelers' satisfaction and behavioral intentions. Statistical results showed that Asian cruise travelers have four sub-dimensions of cognitive perceived value: “facility,” “food & beverage (F&B),” “entertainment,” and “staff.” Affective perceived value was measured by emotional response measurement items. The current study indicated travelers' perceived value of the cruise experience affects travel satisfaction and travelers' behavioral intention.     

Weekend vs. midweek stays: Modelling hotel room rates in a small market

Using a hedonic model, we estimate the willingness to pay for different hotel characteristics for a small market environment. We uniquely collected a data set from a meta-booking engine including their detailed customer review ratings compiled from numerous individual hotel search engines. We argue that meta-search engines are well suited to gather prices to be used in hedonic models. In our estimation, we distinguish hedonic models for single room stays during the week potentially relevant for business travellers and double room stays during the weekend intended for leisure. Important determinants of hotel room prices are popularity ratings (derived from customer reviews), the hotel star rating, weeks of advance booking, and certain hotel characteristics such as express checkout, room service, or Internet access. A number of important characteristics such as wellness offers or wireless Internet in the rooms are insignificant pointing to the conclusion that these may be regarded as standard attributes and do not fetch additional economic value in terms of higher consumer willingness to pay.     

The Importance of Hotel Attributes in Contributing to Travelers' Satisfaction in the Hong Kong Hotel Industry

Abstract

This study surveyed 402 international travelers to explore their satisfaction levels towards service and facility quality in three Hong Kong hotel market segments, High-Tariff A, High-Tariff B and Medium Tariff. Six perception dimensions were extracted from 33 hotel attributes by a factor analysis. All six dimensions had a significant impact on the overall satisfaction of travelers with service quality and facilities in the three Hong Kong hotel market segments. Quality of Staff Performance was the most influential factor followed by Quality of Room Facilities, Value for Money, Variety and Efficient Services, Business Related Services, and Safety and Security respectively. It was found that travelers had the lowest satisfaction level towards the Medium-Tariff hotel segment. By identifying the most influential hotel dimension in influencing travelers' satisfaction levels, hoteliers will be in an advantageous position to formulate tactics to meet the changing needs and expectations of travelers. Implementing human resources training that emphasizes the fact that service quality is part of each employee's job should have a significant impact on guest re-purchase intention. The importance of value segmentation cannot be overlooked by hoteliers. Travelers will continue to expect hotels to provide more value-for-money services and facilities and they are expected to shift their purchasing decision to an economic value basis.     

Insights into Suspicious Online Ratings: Direct Evidence from TripAdvisor

Online ratings and online reputation management are becoming increasingly popular and important. With this increasing importance, attempts to manipulate online reviews through fake reviews have become more prevalent. Suspicious online reviews (ratings) exist on many e-commerce platforms, but these reviews have rarely been observed and reported as manipulation in academic studies using different test methods. In our research, we examine empirical evidence of suspicious online ratings based on 41,572 ratings on TripAdvisor. Applying quantitative analytics, we find three important results: (1) the gap between overall rating and individual ratings does exist and is significant, especially among the lower class hotels; (2) the proportion of suspicious ratings is about 20% at a standard of 0.5; and (3) reviewers who tend to post excellent ratings are less likely to generate big gaps when posting ratings. We offer specific managerial implications for hotel managers on online reputation management and selected suggestions for future research based on the empirical findings.