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Photo Credit: Alex E. Proimos via Flickr Creative Commons |
Online reviews are having a huge
impact on service businesses says an article in the latest edition of the excellent
Attractions Handbook. Although few attraction operators
have embraced them to the degree seen in
the hotel and restaurant sectors, the opportunity is there to increase business
by encouraging and managing reviews across all areas of leisure, including
attractions.
A study by economists at the University of California,
Berkeley found
a variance of just half a star rating can determine whether a service business
grows and thrives or goes bust. Researchers focused on restaurant reviews on
Yelp.com and found that the difference between 3 and 3.5 stars increased the
chance of a business reaching capacity at peak times from 13 per cent to as
much as 34 per cent.
Further reinforcement of the
impact comes from a TripAdvisor study which found that properties with 11
reviews or more on the website see a 28 per cent rise in user engagement when
compared to those with 10 or fewer.
Dealing well with complaints
relating to online reviews is also important, according to a report from PhoCusWright
the travel research and analysis company. They
found that 84 per cent of TripAdvisor users said an appropriate management response
to a bad review improves their impression of a hotel or restaurant.
In the attractions industry,
monitoring reviews can act as a feedback loop for complaints, while managing them
helps to neutralise the impact of bad reviews which have been shared by
consumers. As more attractions build hotels, spas and restaurants, managing
these reviews also becomes an important part of the reputation management of
the operation.
Source: Attractions Handbook