How to turn. Reviews into Revenue & Trends in Online Reputation

Transcription

1 How to turn Reviews into Revenue & Trends in Online Reputation

2 1. Status Quo AGENDA 2. Top Performers 3. Reviews are boring. Reviews are fake. 4. What to do?

3 FACTS ABOUT THE COMPANY 5,000+ customers 35+ countries 90+ employees 16 nationalities

4 REPUTATION MANAGEMENT WE ANALYZE MILLIONS OF REVIEWS

5 INFORMATION CONTAINED IN REVIEWS Text Image Video Overall Sound Date Submitted Pre-, Post-, During-Stay Channel Submitted Location Form Score REVIEW Topics mentioned Meta Data Type of Guest Semantics Age Travel Purpose Nationality Type Business, Leisure, Family, Couple, Single, Etc Price Room other LTV CAC Reviewer Source of Booking Revenue Data Average Price Operating Costs Tonality Detail of Text Negative / Positive Booking Frequency

6 STATUS QUO A closer look at the hotel market

7 900+ REVIEWS per hotel per year

8 PORTAL RELEVANCE Portal New Reviews in Q Booking.com 62,7% 2 TripAdvisor 15,9% 3 Google 9,0% 4 Hotels.com 3,5% 5 HolidayCheck 3,1% 6 Facebook 2,5% 7 HRS 2,5%

9 PORTAL RELEVANCE Portal New Reviews in Q Booking.com 62,7% 2 TripAdvisor 15,9% 3 Google 9,0% 4 Hotels.com 3,5% 5 HolidayCheck 3,1% 6 Facebook 2,5% 7 HRS 2,5% Expedia?

10 PORTAL RELEVANCE Portal New Reviews in Portal Q New Reviews in Q Booking.com 62,7% 1 Booking 53.3% 2 TripAdvisor 15,9% 2 Google 21.8% 3 Google 9,0% 3 TripAdvisor 12.4% 4 Hotels.com 3,5% 4 Facebook 3.6% 5 HolidayCheck 3,1% 5 hotels.com 2.5% 6 Facebook 2,5% 6 HolidayCheck 2.4% 7 HRS 2,5% 7 Expedia 1.5% Expedia?

11 PORTAL RELEVANCE Portal New Reviews in Portal Q New Reviews in Portal Q New Reviews in Q Booking.com 62,7% 1 Booking 53.3% 1 Booking 53.0% 2 TripAdvisor 15,9% 2 Google 21.8% 2 Google 28.2% 3 Google 9,0% 3 TripAdvisor 12.4% 3 TripAdvisor 8.8% 4 Hotels.com 3,5% 4 Facebook 3.6% 4 Facebook 2.5% 5 HolidayCheck 3,1% 5 hotels.com 2.5% 5 hotels.com 1.9% 6 Facebook 2,5% 6 HolidayCheck 2.4% 6 HolidayCheck 1.9% 7 HRS 2,5% 7 Expedia 1.5% 7 Expedia 1.8% Expedia?

12 PORTAL RELEVANCE Portal New Reviews in Portal Q New Reviews in Portal Q New Reviews in Q Booking.com 62,7% 1 Booking 53.3% 1 Booking 53.0% 2 TripAdvisor 15,9% 2 Google 21.8% 2 Google 28.2% 3 Google 9,0% 3 TripAdvisor 12.4% 3 TripAdvisor 8.8% 4 Hotels.com 3,5% 4 Facebook 3.6% 4 Facebook 2.5% 5 HolidayCheck 3,1% 5 hotels.com 2.5% 5 hotels.com 1.9% 6 Top Facebook 3 = 87,6% 2,5% 6 HolidayCheck Top 3 = 87,5% 2.4% 6 HolidayCheck 7 HRS 2,5% 7 Expedia 7 Expedia Expedia? 1.5% Top 3 = 90,1% 1.9% 1.8%

13 PORTAL RELEVANCE Portal New Reviews in Booking.com dominating, followed by TripAdvisor Google Newcomers Google and Facebook are catching up. One review can be displayed multiple times (e.g. trivago, ctrip, 1 Booking 53.0% travelocity) 2 Google 28.2% 3 TripAdvisor 8.8% 4 Facebook 2.5% 5 hotels.com 1.9% 6 HolidayCheck 1.9% 7 Expedia 1.8% Do not forget local niche players like TopHotels & Zoover. Q4 2017

14 BERLIN IN 2016 Average Review Score in Berlin: 80.03%

15 BERLIN IN 2016 Best Scores on Booking: Average Review Score in Berlin: Lowest Scores on HRS: 81.4% 80.03% 77.5%

16 BERLIN IN 2016 Best Scores on Booking: Average Review Score in Berlin: Lowest Scores on HRS: SMALL HOTELS HAVE BETTER SCORES THAN BIG HOTELS 1 10 rooms = 84.1% rooms = 81.1% vs rooms = 79.1% >100 rooms = 80.2% 81.4% 80.03% 77.5%

17 BERLIN IN 2016 Best scores on Booking.com Best player to activate silent mass Lowest scores on HRS => Business Travellers Small hotels have better reviews than big hotels => Big chance to compete

18 TOP PERFORMERS in Stockholm

19 TOP 25 TripAdvisor - STOCKHOLM

20 TOP 25 TripAdvisor - STOCKHOLM The Top 25 TripAdvisor Hotels in Stockholm not only have better review scores, but also collect significantly more reviews. ALL HOTELS IN Q4 / 2017 Number of Reviews: 36 Average Score: 3.89 More information on TripAdvisor can be found here and here.

21 TOP 25 TripAdvisor - STOCKHOLM The Top 25 TripAdvisor Hotels in Stockholm not only have better review scores, but also collect significantly more reviews. ALL HOTELS IN Q4 / 2017 Number of Reviews: 36 Average Score: 3.89 TOP 25 IN Q4 / 2017 Number of Reviews: 67 Average Score: 4.48 More information on TripAdvisor can be found here and here.

22 TripAdvisor CITY RANK - STOCKHOLM City Rank Stockholm Total Number of Reviews Total Average Rating Data as of December, 30th 2017

23 TripAdvisor CITY RANK - STOCKHOLM City Rank Stockholm Total Number of Reviews Total Average Rating Number of Average Rating Reviews Q4/2017 Q4/ Data as of December, 30th 2017

24 TripAdvisor - COMMENT RATE City Rank Average % % % % % % Average 40% Data: Hotels Stockholm, Reviews submitted submitted in Q4/2017, Comment Rate as of January, 2nd 2018

25 TripAdvisor - COMMENT RATE City Rank Average 1 point 2 points 3 points 4 points 5 points % 95% 75% 58% 55% 55% % 68% 53% 59% 53% 59% % 37% 52% 46% 47% 49% % 56% 70% 39% 39% 34% % 33% 12% 17% 15% 30% % 0% 0% 0% 0% 0% Average 40% 51% 52% 44% 41% 56% Data: Hotels Stockholm, Reviews submitted submitted in Q4/2017, Comment Rate as of January, 2nd 2018

26 SUCCESS FACTORS Three success factors to climb up rankings. NUMBER OF REVIEWS QUALITY RECENCY

27 REVIEWS & CONVERSION RATE Month Conversion Rate October ,2% November ,2% December ,1% January ,2% February % Reviews put live (more than 5) Reviews

28 REVIEWS & CONVERSION RATE 31.9% increase in conversion rate

29 REVIEWS ARE BORING. REVIEWS ARE FAKE.

30 OUTLOOK Reviews are fake and cannot be trusted. Reviews are boring. Nobody wants to read reviews anymore.

31 REVIEWS NEED TO CHANGE Word of mouth People will always want to know what their friends and their peers think about a product or service before they buy it.

32 REVIEWS NEED TO CHANGE Word of mouth People will always want to know what their friends and their peers think about a product or service before they buy it. Asking better questions Not ask the same question 1,000 times. Ask questions that add value for the hotelier to get insights. Ask questions that add value for the potential guest that chooses a hotel.

33 REVIEWS NEED TO CHANGE Putting reviews in context Enriching reviews with data like author, room number, room category, ADR, traveller type, booking channel, revenue, etc. will lead to better insights help to solve the discovery problem

34 REVIEWS NEED TO CHANGE Putting reviews in context Enriching reviews with data like author, room number, room category, ADR, traveller type, booking channel, revenue, etc. will lead to better insights help to solve the discovery problem Fake reviews Anonymous reviews will become neglected. They are boring. Only reviews which contain enriched information will be relevant.

35 WHAT TO DO NOW?

36 ACTIVATE THE SILENT MASS Better Reviews TripAdvisor review score when asking guests to submit a review: 89% TripAdvisor review score without asking: 82% More Reviews Actively asking for a review: Return Rate between 18% and 30% depending on the portal.

37 ASK BETTER QUESTIONS Better questions Ask questions that actually add value for you and the guest. Put reviews into context Enrich the review with other information.

38 IMPROVE Analyze your strengths and weaknesses. How can you improve? Integrate reviews to increase conversion rate Expectations Management & More Feedback Points Get guest feedback before and during the stay. Too much data / No time? Get insights. Automate it.

39 NO CHANCE TO COMPETE? Remember: Small hotels have better reviews than big hotels Focus on long-tail search. E.g. Hotel Stockholm Södermalm, independent hotel, affordable hotel NO ADDRESS? Use SMS. Ask guests for a review during stay. Collect direct contact details.

40 SUMMARY 1. Google and Facebook catching up quickly 2. Opportunity in niche portals 3. Quality, number of reviews and recency matter most to climb up rankings 4. Reviews increase conversion rate 5. Reviews will always be important. But reviews will change. 6. Activate the silent mass. 7. Ask better questions. Put reviews into context. 8. Use operational insights from data to improve 9. It is possible to compete (also for small hotels)

41 Start your free trial ( Moritz Klussmann / mk@customer-alliance.com /