How Do Online Reviews Impact Hotels and Restaurants?

In this new digital world, where everyone is becoming dependent on getting services or facilities online, reading online reviews has made people vigilant consumers. Reviews play an important role for businesses; they hold the potential to take businesses to new heights or affect their market reputations and sales adversely. In the Hospitality industry, reviews have a vital place, especially for Hotels and Restaurants, because they influence others to make booking decisions, shape brand reputation, and increase revenue. Here on this page, let's go deep and try to figure out how these online reviews impact Hotels and Restaurants by sliding over some statistics.

Impact of positive reviews on Hotels & Restaurants

A positive review about a hotel and restaurant can significantly uplift the brand's visibility and credibility. Here are some points on how positive reviews affect. 

For Hotels

• Positive reviews directly affect booking and revenue, and booking rates are higher. 
   
• Positive reviews can significantly enhance a hotel's search ranking on Google and other search engines. Online reviews also influence SEO, which can benefit hotels and eventually lead to more organic traffic. 
   
• For a brand's reputation, reviews matter since they explain a lot about the hotel, what is best, and directly improve their reputation.
   
• Reading positive reviews can build trust and loyalty among customers, encouraging them to choose the hotel every time and making them loyal customers, thus helping to retain customers for longer. 
   
• The more positive reviews a hotel gets, the more edge it earns in the competitive market. Every positive review on online platforms attracts more readers, who in turn become customers. 

For Restaurants

• For restaurants, reviews affect people's dining decisions, and if they are positive, more people are attracted to them.
   
• When a customer reads a review, they get valuable feedback about the cleanliness, food quality, environment, and staff. Reading positive reviews about a restaurant means they are serving people well.
   
• Collecting positive reviews attracts more leads and queries for reservations and gradually increases the overall revenue of a restaurant.
   
• Gaining more positive reviews makes people think of a revisit, thus building brand loyalty. 
   
• Positive Reviews create a competitive difference among the same businesses, and these can be a key differentiator for you to stand out. 

Dealing with the Impact of Negative Reviews Online.

Hotels and restaurants both gain positive and negative reviews, but what if negative reviews reach a higher number than positive ones? Or how do they impact the businesses, and how can you turn a negative review into a positive experience? You need to understand that it is inevitable that you will not receive any negative reviews online. Instead of reacting to a negative one, you should think about responding politely and professionally. Learn from the feedback and improve the focused areas, and encourage taking suggestions. Stay calm and do not take it personally; instead, start by saying "Thank you." If you feel the negative reviews highlight the genuine fault in the notice.

What do the stats say?

Below are some statistics compiled from numerous studies and research done in previous years. These contain some insights that illuminate how reviews play a significant role in hotel and restaurant businesses.

• When it comes to booking a hotel room, 80 % to 90 % of people read reviews about hotel amenities.
   
• Around 60 % to 70 % of people like to read reviews online of any particular restaurant they heard about from someone they know.
   
• Hotels with more than 100 reviews get three times more booking inquiries. 
   
• More than 50 % of bookings at restaurants are made after reading responses and heavily rely on peer feedback.
   
• Online reviews with photos have more than 70 % chances of influencing hotel booking decisions. 
   
• More than 40 % of people prefer to book a hotel that practices eco-friendly activities, even if they have to pay slightly more.
   
• 1-star ratings can increase growth by around 10 % to 15 % in hotel and restaurant inquiries.
   
• More than 70% of people who have taken the hotel or restaurant service only drip a review when asked, otherwise they don't

Tips to manage online reviews for hotel or restaurant owners

Online reviews can't be taken for granted, thus they need to be managed smartly to get the most out of their user in order to take the brand to reach new growth. Most of the things depend on managing online reviews, and here are some tips you must remember if you own a hotel or restaurant. 

• It is obvious that negative reviews read online can adversely affect a hotel or restaurant's brand reputation. So, you must smartly monitor those reviews regularly. 
   
• You must optimize your online presence by listing your information more accurately and updating it in a timely manner. You can also be active on social media and other platforms, building engagement by connecting with people more.
   
• Take action against the issue highlighted in the reviews and implement necessary changes. Ask the reviewer to provide more information and be more generous to them.
   
• Ask satisfied customers to leave a positive review.
   
• Ask them to update their negative review if you have compensated them with additional services, discounts, or refunds and fixed the issues. It shows that the brand listens to its customers and builds trust. 

Some Important Key Takeaways To Consider.

For guests like you who are looking to book hotels or dine at restaurants but rely on reading online reviews, here are some important tips to remember.

• Do not rely completely on online reviews to make your buying decisions. 
   
• You must verify the source and authenticity. Since most of the online reviews are fake so consider only those who are verified purchasers or premium members of the platforms.
   
• Examine the reviewers' profiles and check whether they are making fake reviews about a single hotel or restaurant. 
   
• Try to capture the overall sentiment of the online review when you read, this may help you identify the genuine opinions and feedback.
   
• You must evaluate whether negative reviews highlight a single issue or multiple issues with a hotel or restaurant.
   
• Compare reviews on other review platforms that are also trustworthy. 
   
• Lastly, trust your judgement. Make decisions based on your own needs, preferences, and priorities, and not under anyone else's influence.