Theoretical framework about the effect of online reviews on hotel bookings
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Theoretical Framework on the Effect of Online Reviews on Hotel Bookings
Introduction to Online Reviews and Hotel Bookings
Online reviews have become a critical factor in the decision-making process for consumers booking hotels. The influence of these reviews extends beyond mere ratings, affecting perceptions of trust, brand image, and ultimately, booking intentions. This article synthesizes research findings to provide a comprehensive theoretical framework on how online reviews impact hotel bookings.
Impact of Review Valence on Booking Intentions
Positive vs. Negative Reviews
Research consistently shows that negative reviews have a more substantial impact on hotel booking intentions than positive reviews. Negative reviews tend to dominate consumer decision-making, significantly reducing the likelihood of booking . Conversely, positive reviews, while beneficial, do not have as strong an effect on increasing booking intentions.
Interaction with Numerical Ratings
The interaction between numerical ratings and the number of reviews also plays a crucial role. When ratings are good, the number of reviews enhances trust in the rating. However, if the rating is bad, the number of reviews does not significantly alter the perceived trustworthiness of the rating.
Moderating Factors: Brand Image, Price, and Star Category
Brand Image
Brand image can moderate the impact of online reviews on booking intentions. A strong brand image can slightly buffer the negative effects of poor reviews, although this effect is relatively minor due to the subjective nature of brand perception .
Price and Star Category
Price and star category also moderate the relationship between reviews and booking intentions. Higher prices and higher star categories can amplify the impact of review sentiment, making negative reviews more detrimental and positive reviews more beneficial .
Role of Review Content and Reviewer Characteristics
Key Online Reviews (KORs)
Not all reviews are created equal. Key Online Reviews (KORs), identified by their content quality and reviewer characteristics, have a more significant influence on booking decisions. These reviews often mediate the effects of general review content and reviewer traits on booking intentions.
Perceived Credibility
The perceived credibility of online reviews is another critical factor. Reviews that are two-sided (presenting both positive and negative aspects) are perceived as more credible and have a stronger positive impact on booking intentions compared to one-sided reviews.
Influence of Competitor Reviews
Competitive Effects
A hotel's own reviews and its competitors' reviews both significantly impact booking performance. This effect is more pronounced for business travelers and for reviews discussing subjective attributes, which are harder to evaluate without relying on others' experiences.
Technological Enhancements: Virtual Reality
Combined Effects with Virtual Reality
The integration of virtual reality (VR) with online reviews can enhance the overall impact on booking intentions. While VR alone positively influences booking intentions, its combination with online reviews provides a more substantial effect, suggesting that VR can complement and amplify the persuasive power of reviews.
Conclusion
The theoretical framework on the effect of online reviews on hotel bookings highlights the complex interplay between review valence, numerical ratings, brand image, price, star category, review content, and technological enhancements. Negative reviews have a dominant impact, moderated by factors such as brand image and price. Key Online Reviews and perceived credibility further influence booking decisions, while competitor reviews and VR integration offer additional layers of complexity. Understanding these dynamics can help hotel managers strategically manage online reviews to optimize booking performance.
Sources and full results
Most relevant research papers on this topic
The influence of online ratings and reviews on hotel booking consideration
Impact of online reviews on hotel booking intention: The moderating role of brand image, star category, and price
The Interaction Effects of Online Reviews, Brand, and Price on Consumer Hotel Booking Decision Making
The impact of online user reviews on hotel room sales
The effect of online reviews on hotel booking intention: The role of reader-reviewer similarity
EXPRESS: The Competitive Effects of Online Reviews on Hotel Demand
The impact of online reviews on hotel booking intentions and perception of trust.
The role of key online reviews in affecting online hotel booking: an empirical investigation
Perceived credibility of online hotel reviews and its impact on hotel booking intentions
When online reviews meet virtual reality: Effects on consumer hotel booking
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