A summit of more than 160 leading Asian hotel industry professionals in Kuala Lumpur, Malaysia, has found that the rise in popularity of social media and online review sites across Asia is having a significant influence on how hoteliers operate and their ability to attract guests.
Asian hotels to see a hike in online bookings.
More than 90% of respondents at the ‘Driving Hotel Revenue Malaysia Summit” predicted that hotel bookings from online sources will grow by more than 20 percent in the coming two years.
Other key findings from the summit organised by IDeaS Revenue Solutions, a leading provider of pricing and revenue management software to the Asian hotels sector:
- 94% of hoteliers surveyed stated that a hotel’s online reputation could have an impact on a guest’s decision to stay with a specific property or hotel group.
- 66% of hoteliers believe that a hotel’s online reputation can have a ‘large’ impact on how it can price its rooms and services.
- 83% of hoteliers at the summit stating their belief that demand will grow for the regional hotel sector by more than 10% in the coming two years, with business travellers expected to drive growth in the hotel sector at a greater rate than leisure travellers.
This research is backed by a recent Cornell School of Hotel Administration Study, which found that online guest satisfaction has a direct impact on the financial performance of hotels. Their research found a 1-point increase in a hotel’s 100-point ReviewPro Global Review Index leads up to a 0.89% increase in price (ADR), a 0.54% increase in occupancy, and a 1.42% increase in Revenue per Available Room (RevPAR).
Gladys Ang, IDeaS’ regional director of sales, said “In an increasingly digital age, a hotelier’s reputation has never been more critical. With the ability for guests to share both positive and negative hotel experiences to large groups of people – including potential guests – in real-time, ensuring that guests have a positive perception of your hotel is paramount.
“While online reviews have been generally used by hoteliers to help improve operational and marketing activities to date, the proven relationship between online reputation and pricing means that hoteliers need to incorporate online reputation data when they develop their pricing strategies, consider their competitive positioning and make tactical pricing adjustments.”
