theoretical framework about the effect of online reviews on hotel bookings

Theoretical Framework: The Effect of Online Reviews on Hotel Bookings

Introduction

The advent of the internet has revolutionized the way consumers make purchasing decisions, particularly in the hospitality industry. Online reviews have become a critical source of information for potential customers, influencing their booking intentions and perceptions of hotels. This theoretical framework aims to explore the multifaceted impact of online reviews on hotel bookings, considering various moderating factors such as review valence, brand image, price, and reviewer characteristics.

Impact of Review Valence

The valence of online reviews—whether positive or negative—plays a significant role in shaping consumer behavior. Research indicates that negative reviews have a more substantial impact on booking intentions compared to positive reviews. Negative reviews tend to deter potential customers more effectively, highlighting the importance for hotel managers to address and mitigate negative feedback promptly .

Moderating Factors

Several factors moderate the relationship between online reviews and hotel booking intentions:

Brand Image and Familiarity: The impact of online reviews is moderated by the brand image and familiarity of the hotel. Lesser-known hotels benefit more from positive reviews, which enhance consumer awareness and improve attitudes towards the hotel. Conversely, well-known brands may experience a lesser impact from reviews due to their established reputation .
Price and Star Category: The price and star category of a hotel also influence how reviews affect booking decisions. Higher-priced and higher-starred hotels may see a more pronounced effect from reviews, as consumers have higher expectations for these establishments. The interaction between price, star category, and review valence can significantly alter booking intentions .
Reviewer Expertise and Similarity: The expertise of the reviewer and the similarity between the reviewer and the reader can further moderate the impact of reviews. Reviews from perceived experts or those with similar demographic or preference characteristics to the reader are more influential. This similarity can enhance trust and the perceived credibility of the review .

Interaction with Other Cues

Online reviews do not operate in isolation; they interact with other informational cues such as virtual reality applications, numerical ratings, and the framing of reviews. For instance, the application of virtual reality can complement online reviews, providing a more immersive experience that can enhance booking intentions. Similarly, the presence of numerical ratings alongside written reviews can influence consumer trust and decision-making processes .

Differential Effects on Hotel Segments

The effects of online reviews vary across different hotel segments. Luxury hotels are more affected by the valence of reviews, while lower-tier hotels are more influenced by the volume of reviews. This differential impact underscores the need for tailored review management strategies based on the hotel's market position.

Key Online Reviews (KORs)

Not all online reviews are created equal. Key Online Reviews (KORs), which are identified based on content quality and reviewer characteristics, have a more significant influence on consumer decisions. These reviews serve as critical touchpoints that can sway booking intentions more effectively than common reviews. Understanding the factors that contribute to the identification of KORs can help hotel managers prioritize and manage these influential reviews.

Conclusion

The theoretical framework highlights the complex interplay between online reviews and hotel booking intentions. By understanding the various moderating factors and the differential effects on hotel segments, hotel managers can develop more effective strategies to leverage online reviews, enhance consumer trust, and ultimately drive bookings. Future research should continue to explore these dynamics, particularly in the context of emerging technologies and evolving consumer behaviors.

References

Impact of online reviews on hotel booking intention: The moderating role of brand image, star category, and price
Tried and tested: The impact of online hotel reviews on consumer consideration
The impact of online user reviews on hotel room sales
The Interaction Effects of Online Reviews, Brand, and Price on Consumer Hotel Booking Decision Making
When online reviews meet virtual reality: Effects on consumer hotel booking
The effect of online reviews on hotel booking intention: The role of reader-reviewer similarity
The impact of online reviews on hotel booking intentions and perception of trust
The influence of online ratings and reviews on hotel booking consideration
The Differential Effects of the Quality and Quantity of Online Reviews on Hotel Room Sales
The role of key online reviews in affecting online hotel booking: an empirical investigation

Theoretical framework about the effect of online reviews on hotel bookings

Summary

Theoretical Framework: The Effect of Online Reviews on Hotel Bookings

Introduction

Impact of Review Valence

Moderating Factors

Interaction with Other Cues

Differential Effects on Hotel Segments

Key Online Reviews (KORs)

Conclusion

References

Sources and full results

Impact of online reviews on hotel booking intention: The moderating role of brand image, star category, and price

Negative online reviews strongly impact hotel booking intention, with brand image, star category, and price playing moderating roles.

Tried and tested: The impact of online hotel reviews on consumer consideration

Online hotel reviews generally enhance consumer consideration, with stronger effects for lesser-known hotels and a minor impact from reviewer expertise.

The impact of online user reviews on hotel room sales

Online consumer reviews significantly impact hotel room sales, with a significant positive relationship observed between reviews and bookings.

The Interaction Effects of Online Reviews, Brand, and Price on Consumer Hotel Booking Decision Making

Negative reviews have a dominating effect on hotel booking intention, with online reviews, brand familiarity, and price playing varying roles in consumer decision-making.

When online reviews meet virtual reality: Effects on consumer hotel booking

Online reviews and virtual reality together significantly impact consumer hotel booking, with a stronger combined effect than either alone.

The effect of online reviews on hotel booking intention: The role of reader-reviewer similarity

Online reviews positively influence hotel booking intentions, with demographic similarity and preference similarity playing a substituting moderation role in this relationship.

The impact of online reviews on hotel booking intentions and perception of trust.

Positively framed information with numerical rating details increases booking intentions and consumer trust in hotel reviews, while early negative information is more influential.

The influence of online ratings and reviews on hotel booking consideration

When a hotel has a good rating, the number of reviews increases the trust in the rating, but if a rating is bad, the number of reviews has no effect on how trustworthy the rating is.

The Differential Effects of the Quality and Quantity of Online Reviews on Hotel Room Sales

Online reviews impact hotel sales and revenue differently based on the quality and quantity of reviews, with a greater impact on luxury hotels and a lesser impact on lower-tier hotels.

The role of key online reviews in affecting online hotel booking: an empirical investigation

Key online reviews (KORs) significantly influence online hotel booking, mediating the effects of review content and reviewer characteristics.

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