Impact of Electronic Word of Mouth

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UNLV Theses/Dissertations/Professional Papers/Capstones

4-1-2011

How User-Generated Review Websites Impact a Hotel’s RevPar Milan Patel
University of Nevada, Las Vegas

Follow this and additional works at: http://digitalscholarship.unlv.edu/thesesdissertations Part of the E-Commerce Commons, Hospitality Administration and Management Commons, and the Technology and Innovation Commons Repository Citation Patel, Milan, "How User-Generated Review Websites Impact a Hotel’s RevPar" (2011). UNLV Theses/Dissertations/Professional Papers/Capstones. Paper 1066.

This Professional Paper is brought to you for free and open access by Digital Scholarship@UNLV. It has been accepted for inclusion in UNLV Theses/ Dissertations/Professional Papers/Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact marianne.buehler@unlv.edu.

HOW USER-GENERATED REVIEW WEBSITES IMPACT A HOTEL’S REVPAR

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How User-Generated Review Websites Impact a Hotel’s RevPar

By

Milan Patel

Bachelor of Science University of Nevada, Las Vegas 2011

A professional paper submitted in partial fulfillment of the requirements for the

Master of Hospitality Administration William F. Harrah College of Hotel Administration

Graduate College University of Nevada, Las Vegas

HOW USER-GENERATED REVIEW WEBSITES IMPACT A HOTEL’S REVPAR May 2011

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ABSTRACT How User-Generated Review Websites Impact a Hotel’s Revenue

By Milan Patel

Dr. Mehmet Erdem, Committee Chair Associate Professor of Hotel Management University of Nevada, Las Vegas

This is a professional paper which explores the correlation between user-generated reviews on TripAdvisor.com and how a hotels’ TripAdvisor Popularity Index ranking affects a hotels’ RevPar. The study surveyed nine hotels in Dallas, TX, three hotels in the four star level, three hotels in the three star level, and three hotels at the two and one half star level. The study focus’s on the strength of TripAdvisor in the hotel industry, the credibility of reviews, influence and expectations of guest that are developed due to the reviews, and lastly the impact the reviews on TripAdvisor have on a hotels’ RevPar.

HOW USER-GENERATED REVIEW WEBSITES IMPACT A HOTEL’S REVPAR

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TABLE OF CONTENTS ABSTRACT …………………………………………………………………………………..…2 TABLE OF CONTENTS PART I …......................................................................................................3

…..............................................................................................................................4

Introduction ……………………………………………………………………………..4 Purpose Statement ……………………………………………………………………..5 Justification ……………………………………………………………………………..5 Constraints ……………………………………………………………………………..7 PART II ……………………………………………………………………………..7

Literature Review ……………………………………………………………………..7 Growth of User-Generated Hotel Review Websites … ………………………7 TripAdvisor.com ……………………………………………………………..8 Review Credibility …………………………………………………..………..13 Influence and Expectations ………………………………………………...….14 Revenue Impact ………………………………………………..…………..16 PART III ……………………………………………………………………………..……..17

Methodology …………………………………………………………………..………..17 Correlation Study ………………………………………………………………..…..18 Results ………………………………………………………………………………..…..18 Recommendations ………………………………………………………………...….23 Conclusion ………………………………………………………………………..…..25 APPENDIX ………………………………………………………………………...………….27 …………………………………………………………………..………..27 ………………………………………………………………..…………..30

Glossary REFERENCES

HOW USER-GENERATED REVIEW WEBSITES IMPACT A HOTEL’S REVPAR

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Introduction “The Web in general makes it possible to broadly disseminate information nearly instantaneously” (Schetzina, 2010). We are in a new era where people are increasingly gaining access to the Web from their desktops, laptops, mobile phones, iPads, etc. Consequently, people are communicating via word-of-mouth and online about websites and...
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