The impact of cleanliness on customer perceptions of security in hostels: A WOM-based approach

While research has shown that security, cleanliness and location are key attributes when customers choose hostels, the relationship between these attributes has not been properly examined. We take a word-of-mouth (WOM) approach to study the relationship between these attributes using data from a leading hostel booking website. Based on our empirical study, we find that customer perceptions of hostel security are primary determined by the cleanliness of the establishment, followed by its location.     

Peer-to-peer accommodation experience and guest actual recommendations: A novel mixed-method approach

Obtaining recommendations from guests is critical for Airbnb hosts to thrive in the peer-to-peer accommodation business. By extracting the dominant aspects of the Airbnb experience and the guests' sentiment ratings in online comments, this study examines the impact of the aspects and sentiment on guest actual recommendations. A novel mixed-method was adopted to analyse the online reviews of Airbnb guests in Los Angeles, USA. The text-mining results reveal that hosts, location, and amenities are the dominant aspects of the guests' Airbnb experience. Results show that the guests' sentiment ratings for hosts and amenities have significant impacts on the guests' recommendations, while location only influences the private-room guests' recommendations. This study contributes to the extant literature by offering an innovative methodological approach to building the link between experience aspects and guest actual recommendations.     

Worldwide hedonic prices of subjective characteristics of hostels

An overnight at an accommodation establishment might be understood as a package of several different items. Since they are not traded separately in the market, their values for the consumer are difficult to measure. On the other hand, this information is be useful for managers to develop better strategies regarding the mix of services and facilities of their establishments. Analytical decomposition of total prices by different characteristics can be done through hedonic price techniques. In this paper, hedonic prices are used to analyze the impact of different characteristics on prices of hostels. Accommodation prices of more than 8000 hostels worldwide are explained by their characteristics as rated by guests. Results show that the most relevant characteristics are cleanliness, location and facilities.     

Trust and reputation in the sharing economy: The role of personal photos in Airbnb

‘Sharing economy’ platforms such as Airbnb have recently flourished in the tourism industry. The prominent appearance of sellers' photos on these platforms motivated our study. We suggest that the presence of these photos can have a significant impact on guests' decision making. Specifically, we contend that guests infer the host's trustworthiness from these photos, and that their choice is affected by this inference. In an empirical analysis of Airbnb's data and a controlled experiment, we found that the more trustworthy the host is perceived to be from her photo, the higher the price of the listing and the probability of its being chosen. We also find that a host's reputation, communicated by her online review scores, has no effect on listing price or likelihood of consumer booking. We further demonstrate that if review scores are varied experimentally, they affect guests' decisions, but the role of the host's photo remains significant.     

A Text Mining and Multidimensional Sentiment Analysis of Online Restaurant Reviews

This study aims to identify the structure of online restaurant reviews and examine the influence of review attributes and sentiments on restaurant star ratings. While past research indicated four attributes specific to restaurant reviews—food, service, ambience, and price—this study proposes context as the fifth attribute unique to online reviews. Sentiment analysis of online restaurant reviews has confirmed the proposed underlying structure of online restaurant reviews. Results showed that consumers’ sentiments in these five attributes significantly explained the differences in star ratings. Food, service, and context are the top three attributes affecting star ratings, followed by price and ambiance.     

Impacts of quality certification on online reviews and pricing strategies in the hospitality industry

Certification of firm quality is an important strategic concern for industry practitioners, since it entails explicit and implicit investments in time, personnel training and finances. Since the impact of certification influences customers in various ways, the purpose of this study is to determine what impact quality certification has on both online reputation and price premiums. This study extends the scope of extant literature by including various types of accommodations beyond typical hotels. Two-stage least squares (2SLS) is applied revealing an increase in online ratings for accommodations after certification relative to before, supporting that quality certifications may improve online ratings. Using spatial two-stage least squares (S2SLS), this study demonstrates significantly higher valence in online ratings for certified relative to non-certified accommodations, as well as showing a price premium in certified over non-certified accommodations.     

Identifying salient attributes of peer-to-peer accommodation experience

This study explores key content and themes from online reviews to explain major service attributes of peer-to-peer (P2P) accommodation sought by guests. The results from lexical analyses indicate that attributes frequently mentioned in guest reviews are associated with location (proximity to point of interest and characteristics of neighborhood), host (service and hospitality), and property (facilities and atmosphere). Reviews focusing on location and feeling welcome are consistently linked with higher rating scores, including accuracy, cleanliness, check-in, communication, value, and overall ratings. This confirms that P2P accommodation appeals to consumers who are driven by experiential and social motivations. Marketing implications are provided.     

Hosts’ online affinities and their impacts on the number of online reviews on peer-to-peer platforms

Different from traditional hotels, hosts' affinity is an essential feature of homestays. This study uncovers how Airbnb hosts demonstrate their affinity online through the data from 114,310 listings, and examines the relationship between hosts' affinity and the number of reviews, as well as the moderating role of hosts' affinity in the associations among sub-ratings, host listings count, and the number of reviews. The findings indicate a positive link between hosts' affinity and the number of reviews. Guests tend to assign higher overall scores to homestays with poor performance but high affinity, and may alter their homestay attribute requirements in future reservation decisions. Hosts' affinity from guest reviews has greater direct and moderating effects on the number of reviews than hosts' self-statements. Interestingly, hosts' affinity from guest reviews can reduce the guests' requirements for homestay attributes of multiple listings. Meanwhile, hosts’ affinity displayed by host self-statements exhibits the opposite moderating effects.     

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.     

Effect of crowd wisdom on pricing in the asset-based sharing platform: An attribute substitution perspective

Technological advancement has led to the emergence of online platforms fueled by the sharing economy across various industries. This study focuses on Airbnb - a specific asset-based sharing platform in the hospitality industry. Applying the theory of attribute substitution, we explore the wisdom of the crowd manifested in online reviews, in impacting pricing. We found that online review valence and volume have a positive association with room price. Depending on the crowdedness of the location this association is stronger or weaker. Customers care more about room popularity (volume) in a certain area when the fast system of decision-making is triggered. When, however, the slow system is triggered, customers consider the crime rate of a location (valence). Findings show how environmental stimuli and customer reviews decide room price - a variable that was decided traditionally by companies (e.g., hotels). The research furthers our understanding on asset-based platforms in the sharing economy.     

Be a “Superhost”: The importance of badge systems for peer-to-peer rental accommodations

Many sharing-economy websites like Airbnb that offer vacation-rental options for travelers are very popular. However, few studies targeting the vacation-rental industry have investigated online reviews. To narrow this gap, this study focuses mainly on the gamification design developed by Airbnb that awards a “Superhost” badge to hosts who receive good reviews and observes how this can impact an accommodation's review volume and ratings. All available information regarding Airbnb accommodation offered in Hong Kong was retrieved from Airbnb's website. We then constructed a negative binomial model and a Tobit model with different independent variables and controlled a set of variables relating to accommodation characteristics. The results show that an accommodation with the “Superhost” badge is more likely to receive reviews and higher ratings. In addition, guests are willing to spend more on “Superhost” accommodations. Based on our findings, we present implications for research and host practice.     

Facial attractiveness and stereotypes of hotel guests: An experimental research

The purpose of this research was to determine social interaction between hospitality employees and their guests, and consequently assess how front-line employees categorize and stereotype hotel guests based on their facial attractiveness with reference to three main characteristics. Social stereotypes represent a means of information transmission in the communication process and can enable a more rapid transfer of information during the service delivery in the hospitality industry. The experimental research was conducted with 113 hospitality employees at seven hospitality organizations on the Slovenian coast. The results showed a correlation between the perception of hotel guests' facial attractiveness with their assumed characteristics that can lead to stereotyping. Hotel employees often link the guest's facial attractiveness with three common perceived characteristics – guests' propensity to spend, guests' predisposition to being demanding and guests' ‘kindness’, and tend to stereotype them on the same basis. These research findings contribute to a better understanding of the complex interactions that occur during a service encounter and show how facial attractiveness of guests plays an important role in the construction of stereotypes by the hospitality employees.     

The role of language in the online evaluation of hospitality service encounters: An empirical study

In an increasingly global travel market, hospitality services encounters involve growing interactions between providers and customers often belonging to different nationalities and cultures and speaking different languages. Extant hospitality management literature has explored the influence of language on service evaluations mostly in offline settings. This study innovatively captures the effect of the language used in online hotel reviews on online consumer ratings in two distinctively different destinations located in culturally different countries: Italy and Russia. Based on almost half a million Booking.com online reviews written by hotel guests in Moscow and Rome, we illuminate if and to what extent domestic vs. foreign language use affects online customer satisfaction. We find that the use of domestic language exerts a positive impact on online ratings in both countries. Implications for hospitality practitioners and managers, developers and managers of online review platforms, and customers of hotel services are discussed.     

Online Feedback and Attraction Management: An Exploration of the Critical Factors in Effective Operations

The objective of this study was to identify the critical factors about which future visitors to attractions want information, based on online reviews. An NVivo-based content analysis was conducted using 4831 traveler reviews posted on Tripadvisor.com. In total, seven critical factors were identified: environment (e.g. hygiene and cleanliness); experience (e.g. being in good order, overcrowding); location and/or transportation (e.g. subways); price, purpose (e.g. taking photos); target group and suitability (e.g. with/without children); and time. The findings provide guidance for attraction managers on how to make an effective and efficient response to negative reviews on social media channels and how to identify and meet future customer needs. This study supports the attraction industry to improve service quality and attract more visitors in future.     

The culture of hospitality: From anecdote to evidence

We examine the effects of hotel workers' national culture on hotel guests' satisfaction with services rendered by the workers. The results suggest that workers from countries scoring low on Hofstede's cultural dimensions named Individualism and Indulgence are particularly gifted for rendering high quality hotel services. Interestingly, many Asian countries, including Japan, Pakistan, Hong Kong, China, Lebanon, India and the Philippines have advantageous overall cultural profiles, which is consistent with portrayals of the Asian (or Eastern) hospitality culture in the scientific and professional literature. The insights presented in this study have important implications for the processes of staff recruitment and training in the global hotel industry.     

Hotels’ environmentally-framed eWOM. The moderating role of environmental culture

Consumers are increasingly concerned about sustainable development. This study investigates the impact of environmentally-framed reviews on review rating scores considering the moderation of the reviewer's country's environmental performance. We use ordered logistic and linear regression analysis on a dataset of 45k TripAdvisor reviews of green hotels posted by reviewers from 150 countries. The findings reveal that environmentally-framed reviews are associated with higher rating scores, and the reviewer's country's environmental performance positively moderates this impact. This indicates that the environmental ranking of the reviewer's country of origin influences environmentally-framed eWOM about green and non-green services.     

Marketing decisions,customer reviews,and business performance: The use of the Toprural website by Spanish rural lodging establishments

Modern travelers often rely on reviews provided by other consumers online, or electronic word of mouth (eWOM), to choose their accommodations. This study considers the effects of marketing decisions by rural lodging establishment owners (i.e., price and advertising expenditures) on eWOM (i.e., ratings and number of reviews), as well as the effects of eWOM on business performance. The results rely on marketing data and customer reviews obtained from a leading rural tourism infomediary website, related to 202 Spanish rural lodging establishments. A complementary survey also provided information about the lodging establishments' performance. The study thus reveals that price and advertising expenditures affect eWOM; in turn, eWOM affects business performance. Moreover, owners' experience with the infomediary slightly moderates the link between eWOM and performance.     

The price competitive position of Mediterranean countries in tourism: Evidence from the Thomson brochure

Tourism in the Mediterranean region is highly dependent on the few, large, mass market tour operators situated in the North European tourist originating countries. Price competition is intense both between the tour operators and between the Mediterranean countries themselves. This paper uses the hotel package prices listed in the Thomson summer and winter brochures to develop relative price indexes of each Mediterranean country with respect to the Mediterranean average. Indexes are developed in the 3 star, 4 star, 5 star, 7 nights and 14 nights, half-board holiday packages. The prices in the Thomson brochure can be regarded as a unified, internally consistent, set of price data, compiled by the largest UK tour operator and offered to UK tourists desiring a Thomson summer holiday. The change through time of the competitive relative price ranking of hotels, regions and countries listed in the Thomson brochure, may be regarded as an important competitive indicator by industry operators and national policy makers concerned about tourism development.     

Consumer reviews and the creation of booking transaction value: Lessons from the hotel industry

In recent years, much has been said about online consumer-generated feedback. Concern typically emerges regarding consumer decision-making as well as the preservation of an organization's image. Additionally, a company's financial performance can be affected by customer online ratings. The present study explores the impact of a hotel's rating and number of reviews on the value generated through online transactions. Through collaboration with consulting company Travel Click, the research team gathered a sample of 178 hotels representing various companies and brands within the United States. Research results demonstrate that TripAdvisor ratings as well as the number of reviews had positive relationship with the average size of each online booking transaction. The paper concludes with theoretical and practical implications.     

Impact of online reviews on hotel booking intention: The moderating role of brand image,star category,and price

This paper analyses the impact of online reviews on hotel booking intention. The moderating effect of brand image, star category, and price on this relationship was also tested. A quantitative approach has been followed by collecting questionnaires from a convenience sample of 432 customers who have previous experience with online booking. Results of the research revealed that reviews with positive valence do not affect booking intention, while reviews with negative valence have a strong impact. In addition, it was found that several moderators made this impact more or less severe. Brand image demonstrated a slight moderating effect due to the factor's inherent subjective nature. A moderating effect was also observed for both price importance and star category on the relationship. In conclusion, this study emphasizes the need for hotel managers to address online customer reviews, and specifically negative ones, to take advantage of promotional opportunities.