TY - JOUR
T1 - The influence of internet customer reviews on the online sales and prices in hotel industry
AU - Öǧüt, Hulisi
AU - Onur Taş, Bedri Kamil
PY - 2012/2
Y1 - 2012/2
N2 - In this paper, the impact of two service quality metrics (star rating and customer rating) on hotel room sales and prices is investigated. Two of the most popular tourist destinations in the world, Paris and London, are chosen. It is found that a higher customer rating significantly increases the online sales of hotels. The study results show that a 1% increase in online customer rating increases Sales per Room up to 2.68% in Paris and up to 2.62% in London. Contrary to expectations, higher stars do not increase the sales. It is also shown that higher customer ratings result in higher prices of the hotel and the prices of high star hotels are more sensitive to online customer ratings.
AB - In this paper, the impact of two service quality metrics (star rating and customer rating) on hotel room sales and prices is investigated. Two of the most popular tourist destinations in the world, Paris and London, are chosen. It is found that a higher customer rating significantly increases the online sales of hotels. The study results show that a 1% increase in online customer rating increases Sales per Room up to 2.68% in Paris and up to 2.62% in London. Contrary to expectations, higher stars do not increase the sales. It is also shown that higher customer ratings result in higher prices of the hotel and the prices of high star hotels are more sensitive to online customer ratings.
KW - internet customer reviews and ratings
KW - online hotel booking
KW - online hotel price
KW - service quality metrics
UR - http://www.scopus.com/inward/record.url?scp=84858309648&partnerID=8YFLogxK
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U2 - 10.1080/02642069.2010.529436
DO - 10.1080/02642069.2010.529436
M3 - Article
AN - SCOPUS:84858309648
SN - 0264-2069
VL - 32
SP - 197
EP - 214
JO - Service Industries Journal
JF - Service Industries Journal
IS - 2
ER -