JOURNAL ARTICLE

The Competitive Effects of Online Reviews on Hotel Demand.

  • Published In: Journal of Marketing, 2024, v. 88, n. 2. P. 40 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Cho, Sanghoon; Pekgün, Pelin; Janakiraman, Ramkumar; Wang, Jian 3 of 3

Abstract

This article investigates the impact of online reviews—both a hotel's own and its competitors'—on actual hotel bookings, using a proprietary data set of nearly one million reservations from six upscale U.S. hotels combined with review data from Tripadvisor. The study finds that positive own review sentiment increases bookings, while improvements in competitors' review sentiment decrease bookings, with these effects amplified by higher prices and greater review volume. Additionally, business travelers are more sensitive to review sentiment than leisure travelers, who are more price-sensitive, and reviews focusing on subjective experience attributes (e.g., amenities) have a stronger influence on bookings than those emphasizing objective attributes (e.g., location). The research highlights the importance for hotel managers to consider both own and competitor reviews alongside pricing strategies, tailored to consumer segments and review content, to optimize demand.

Additional Information

  • Source:Journal of Marketing. 2024/03, Vol. 88, Issue 2, p40
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2024
  • ISSN:0022-2429
  • DOI:10.1177/00222429231191449
  • Accession Number:175307140
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