The Influence of TripAdvisor Consumer-Generated Travel Reviews on Hotel Performance

The Influence of TripAdvisor Consumer-Generated Travel
Reviews on Hotel Performance
Pasi Tuominen

University of Hertfordshire Business School Working Paper (2011) University of Hertfordshire Business School Working Papers are available for download from https://uhra.herts.ac.uk/dspace/handle/2299/5549

and also from the British Library: www.mbsportal.bl.uk
The Working Paper Series is intended for rapid dissemination of research results, work-inprogress, and innovative teaching methods, at the pre-publication stage. Comments are welcomed and should be addressed to the individual author(s). It should be noted that papers in this series are often provisional and comments and/or citations should take account of this.

Copyright and all rights therein are retained by the authors. All persons copying this information are expected to adhere to the terms and conditions invoked by each author's copyright. These works may not be re-posted without the explicit permission of the copyright holders.

The Business School at the University of Hertfordshire (UH) employs approximately 150 academic staff in a state-of-the-art environment located in Hatfield Business Park. It offers 17 undergraduate degree programmes and 21 postgraduate programmes; there are about 80 research students, mostly working at doctoral level. Business School staff are active in research in numerous areas, including complexity theory, institutional economics, economic modelling, efficiency measurement the creative industries, employment studies, finance, accounting, statistical methods and management science.

The University of Hertfordshire is the UK’s leading business-facing university and an exemplar in the sector. In 2010 it won the Entrepreneurial University of the Year Award. It is one of the region’s largest employers with over 2,700 staff and a turnover of £235million. In the 2008 UK Research Assessment Exercise it was given the highest rank for research quality among the post-1992 universities. It has a student community of over 27,000 including more than 2,000 international students.

The Influence of TripAdvisor Consumer-Generated Travel
Reviews on Hotel Performance

Pasi Tuominen
University of Hertfordshire Business School
Presented at the 19th annual Frontiers in Service Conference

Abstract
Many consumers consult online reviews before making (online) travel arrangements. Yet, little is known about the impact of these reviews on hotel performance, and therefore managing on-line reviews has been widely neglected by the hospitality industry. The basis of the study has been obtained from the existing literature combining the Xiang et al.’s (2008) model of online tourism domain and the Consideration Set Model created by Roberts & Lattin (1991). The consequences of user generated travel reviews and ratings are also largely undefined and unrehearsed within the hospitality industry and the author attempts to rectify this situation by reporting the insights obtained in an extensive exploratory investigation of 1752 reviews, and hotel performance data on 77 hotels in six different cities. The results show that there are correlations between hotel performance and the number of reviews given as well as with the ratings of the reviews. The paper gives suggestions for further research which could shed light on the possibilities for managing reviews and the level of service quality described in customer-generated reviews and ratings. Keywords

Online Review, Reputation, Hotel Performance, Tourism Domain, Hospitality

2

1. Introduction
With difficult market conditions surrounding the travel industry, increasing interest and loyalty among online prospects is integral to hotel suppliers' success. With consumers more likely to cross-shop and price check than ever before, the word of mouth, the on-line reviews, incentives and transparent benefits of the service will often be the deciding factor in the online travel purchase process. The growth of...


References: Alba, J., & Chattopadhyay, A., 1986. Salience Effects in Brand Recall. Journal of Marketing Research, 23(4),
363–369.
Anderson, E., W., 1998. Customer Satisfaction and Word of Mouth. Journal of Service Research, Vol. 1, No.
1, 5-17
Blackshaw, P., 2006
Blackshaw, P., & Nazzaro, M., 2006. Consumer-generated media (CGM) 101: Word-of-mouth in the age of
the web-fortified consumer
Braun-LaTour, K. A., Grinley, M. J., & Loftus, E. F., 2006. Tourist memory distortion. Journal of Travel
Research, 44(4), 360–367.
Buhalis, D., & Law, R., 2008. Progress in information technology and tourism management: 20 years on and
10 years after the Internet the state of eTourism research
Cohen, E., & Cooper, R. L., 1986. Language and tourism. Annals of Tourism Research, 13(4), 533–563.
Compete Inc. 2009. http://www.competeinc.com/research/newsletters/growing-opportunity-online-travelsites-target-social-networks. Accessed 24.11.2009
Crompton, J
Dann, G. M. S., 1997. The language of tourism: A sociolinguistic perspective. Wallingford,
UK: CAB International.
Dellarocas, C., 2003. The digitization of word of mouth: Promise and challenges of online feedback
mechanisms
Etcnewmedia.com., 2009. New media review – from the European travel commission: online travel market.
eMarketer., 2008. First summer vacation stop: the Internet.
Fesenmaier, D. R., 2007. Introduction: challenging destination promotion. Journal of Travel Research, 46(1),
3–4.
Fodness, D., & Murray, B., 1998. A typology of tourist information search strategies. Journal of Travel
Research, 37(2), 108–119.
Friedman, T. L., 2006. The world is flat. New York: Farrar, Straus and Giroux.
Goldenberg, Jacob, Barak Libai, & Eitan Muller, 2001. Talk of the Network: A Complex Systems Look at the
Underlying Process of Word-of-Mouth
Gretzel, U., 2006. Consumer generated content – trends and implications for branding. e-Review of Tourism
Research, 4(3), 9–11.
Gretzel, U., & Yoo, K. H., 2008. Use and impact of online travel reviews. In P. O’Connor, W. Höpken, & U.
Cromie, J. G. & Ewing, M. T., 2009. The rejection of brand hegemony. Journal of Business Research, 62 (2),
218-230
Gursoy, D., & McLeary, K. W., 2004. An integrated model of tourists’ information search behavior. Annals of
Tourism Research, 31(2), 343–373.
Henzinger, M., 2007. Search technologies for the Internet. Science, 317(5837), 468–471.
Hennig-Thurau, T., Gwinner, K., Walsh, G., & Gremler, D., 2004. Electronic word-of- mouth via consumeropinion platforms: what motivates consumers to articulate themselves on the Internet? Journal of Interactive
Marketing, 18(1), 38–52.
Hoeffler, S., & Ariely, D., 1999. Constructing stable preferences: a look into dimensions of experience and
their impact on preference stability
Hopkins, H., 2008. Hitwise US travel trends: how consumer search behavior is changing. Available from.
Hwang, Y. H., Gretzel, U., Xiang, Z., & Fesenmaier, D. R., 2006. Information search for travel decisions. In
D
Keller, K. L., 1993. Conceptualizing, measuring and managing customer-based brand equity. Journal of
Marketing, 57(1), 1–22.
nd
Krippendorff, K., 2004
Leiper, N., 1979. The framework of tourism: towards a definition of tourism, tourist, and the tourist industry.
Leiper, N., 1990. Tourist attraction systems. Annals of Tourism Research, 17(3), 367–384.
Leiper, N., 2008. Why ‘the tourism industry’ is misleading as a generic expression: the case for the plural
variation, ‘tourism industries’
Litvin, S. W., Goldsmith, R. E., & Pan, B., 2008. Electronic word-of-mouth in hospitality and tourism
management
Litvin, S. W., Goldsmith, R. E., & Pan, B., 2008. Electronic word-of-mouth in hospitality and tourism
management
Mack, R. W., Blose, J. E., & Pan, B., 2008. Believe it or not: credibility of blogs in tourism. Journal of
Vacation Marketing, 14(2), 133–144.
Nedungadi, P., 1990. Recall and consumer consideration sets: influencing choice without altering brand
evaluations
Pan, B., & Fesenmaier, D. R., 2006. Online information search: vacation planning process. Annals of
Tourism Research, 33(3), 809–832.
Pan, B., MacLaurin, T., & Crotts, J. C., 2007. Travel blogs and their implications for destination marketing.
Pearce, P., 1982. The social psychology of tourist behavior. Oxford: Pergamon Press.
Prescott, L., 2006. Hitwise US travel report. Available from. http://www.hitwise.com/registrationpage/hitwise-us-travel-report.php.
Priester, J., Nayakankuppam, D., Fleming, M., & Godek, J., 2004. The ASC model: the influence of attitudes
and attitude strength on consideration and choice
Pudliner, B. A., 2007. Alternative literature and tourist experience: travel and tourist Weblogs. Journal of
Tourism and Cultural Change, 5(1), 46–59.
Pühringer, S., & Taylor, A., 2008. A practitioner’s report on blogs as a potential source of destination
marketing intelligence
Roberts, J., & Lattin, J., 1991. Development and testing of a model of consideration set composition. Journal
of Marketing Research, 28(4), 429–440.
Schmallegger, D., & Carson, D., 2008. Blogs in tourism: changing approaches to information exchange.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about performance review
  • Consumer Generated Advertising Essay
  • Tripadvisor Essay
  • hotel Research Paper
  • consumer Essay
  • Managing A Hotel S Image On TripAdvisor Essay
  • Sky High Consumer Influences Essay
  • Social Influence on Consumer Behaviour Essay

Become a StudyMode Member

Sign Up - It's Free