Would Hotel Management Effort Could Manage the Impact of the Online Reviews

Abstract

Electronic word-of-mouth (eWOM) is regarded as crucial in business development. Given the intangible nature of tourism and hospitality products, potential customers find it hard to assess them before making purchase. Accordingly, online customer reviews and management responses accept influential roles in their decision-making process. While a plethora of previous research focused on customer reviews, scholarly attention on how luxury hotels answer to the reviews was scant. Using content analysis, this study examines the management response characteristics of 35 luxury hotels and response style of 7 luxury chain hotels in Hong Kong. Their response characteristics including response frequency, responder's job position, and timeliness of response were generally like. The response style and tone (professional and conversational tones) vary with hotels even they are in the same hotel group. Implications on exercise of management responses are offered for luxury hotel operators.

Keywords

• Communication style
• Hotel
• Online review
• eWOM

Introduction

The Internet is an essential platform for industry practitioners to communicate with customers and enables the practitioners to expand the market segment as well equally to retain the customers [i]. As experiencing a service before making buy is difficult for customers, they would exist more concerned about the recommendation from various online sources, such as other customers, experts, and key opinion leaders; withal, the impacts of online recommendation sources on consumer determination making vary [ii]. This situation is particularly relevant to tourism and hospitality products because of their intangible nature and the boom of tourism and hospitality online review platforms, for examples, TripAdvisor, Ctrip, and others. These platforms power the spread of word-of-oral cavity amongst consumers and have go a crucial factor for making purchase decision [3].

The usual reasons for customers to write reviews revolve effectually customer satisfaction in consequence of performance-expectation comparison, desirability for service recovery, and seeking social support. From the organizational perspective, a positive review reinforces online reputation and consequently enhances hotel occupancy rate and financial performance [iv]. As online reviews can influence hotel reputation and consumer decisions, hotels need to effectively manage the online reviews through their online responses which are publicly bachelor on the review platforms. Management response is mandatory if the review is negative, emotional, and characterized by customer expectation of improvement [5]. In management response, the responder's job position and timeliness of response are the major factors for assessing hotel performance. Autonomously from these characteristics, the response contents and tone are besides considered. Therefore, hotels need to deliberate their responses in terms of suitability [6]. Scholars have provided recommendations on the structure of responses (i.e., what should be mentioned), and the responder's tone (i.e., how to nowadays responses) [vii,viii,9]. Practitioners also put emphasis on direction responses. TripAdvisor provides response guidelines for hoteliers and encourages them to answer to each review [x].

Prior research has provided significant implications on effective ways to answer to customer reviews in hospitality [six, 11]. However, the implications may not exist applicable to all types of hotels as their customers' expectations vary. Empirical prove drawn from specific types of hotels will extend knowledge in the existing literature and equip relevant practitioners with accurate implications. While expectation for luxury hotels is generally higher than that for hotels of lower form, management response is a mandatory practice. It should be important for luxury hotel operators to understand what their peers are doing and how they tin improve in responding to their customers. Therefore, focusing on Hong Kong which is a popular destination in the world, this written report collected luxury hotels' management responses from TripAdvisor, content-analyzed the data, synthesized the response characteristics and style, and provided implications for the practitioners.

Literature Review

Electronic word-of-oral cavity (eWOM) is currently considered as the most important source of data which helps customers brand purchase decisions. In hospitality and tourism, interpersonal influence is essential because the products are intangible and inaccessible before consumption. Rapid development of the Internet facilitates people to share and exchange information using different types of electronic media, such as email, blogs, websites, chatrooms, and newsgroups. In hospitality and tourism, managing eWOM is an indispensable marketing strategy to accomplish two purposes: (1) information generation and (2) revenue generation. Collected information can exist used for production improvement, reputation reinforcement, and customer relationship management. Fiscal performance would eventually be enhanced [3]. Suppliers' unethical practice of employing false review writers reflects the importance of online reviews in determining their concern operation [12].

Numerous websites permit users to share their hotel experience after consumption. Intuitively speaking, positive reviews motivate users to make bookings, whereas negative reviews discourage bookings. In addition to the review contents, the person who writes the review influences users' evaluation of the service providers. Chan, Lam, Grub, Fong, and Constabulary [13] revealed that demographic and preference similarities between readers and reviewers affect the influence of the review valence on hotel booking intention. Readers tend to deeply consider reviews provided past people with a similar background, such equally historic period, occupation, land of origin, and username, because they seem to share mutual judgment. As such, information source is an important factor that potential customers would consider [14]. Following this rationale, when they read the management responses, users would pay attention to the person who writes the response, specially the responder'due south job level.

Apart from job level, users would also consider other characteristics of management response such as responding time, response contents, manner, and tone [6]. As timely response to customers' comments is important [15], reviewers expect hoteliers to give a speedy response related to the service failure they described in the reviews. Responding fourth dimension would touch on client satisfaction and repurchase intention [16]. In addition, speedy response to negative online review effectively improves customer trustworthiness with the hotels [eight]. Trust will eventually be translated into better financial functioning of the hotels [six]. Regarding response content, some elements are necessary and important. Cook [17] indicated that in treatment complaints, an effective resolution letter of the alphabet should express appreciation for the customer's opinion, apologize for inconvenience, acknowledge the problems, explain findings from investigation, offer compensation, and present a resolution programme.

Organizations should ensure that a message is presented properly and with a suitable tone. From the customers' perspective, acknowledging a trouble is a rapport-enhancing movement which is ofttimes applied in effective responses, whereas denying a problem is a rapport-damaging move [xviii]. When facing an unfair review, a defensive managerial response strategy is needed to protect the reputation of service providers. Even so, the defensive message should also exist communicated in a professional tone [19].

Based on our literature review, response characteristics and style of luxury hotels are under-researched. This gap is filled by the current study using the method which is articulated in the next department.

Method

Using a qualitative approach which has been widely adopted in previous hospitality and tourism research [20], this report content-analyzed the management responses made by luxury hotels in Hong Kong. Data were nerveless from TripAdvisor.com which is a highly pop online review website that allows customers to share their tourism and hotel experiences. As our targets are luxury hotels, all Hong Kong hotels which were classified as 5-star past TripAdvisor were selected – 35 hotels. Information drove and assay were separated into two parts. The first part analyzed response characteristics (presence of response, responder's job level, and responding time) based on a large volume of data. The second part which concerns the response style and tone requires a deeper analysis was conducted manually and seven hotels were included. To dominion out whatever possible bias caused past the linguistic communication, this report only focused on English language reviews.

In the first part, TripAdvisor reviews, regardless of their valence, posted in the recent three years (2018–2020) were retrieved. Contempo reviews allow the reveal of latest practices in the industry. Although this menstruation featured the non-existence and existence of COVID-19, the impact of pandemic is unlikely to exist a concern as this study does non focus on specific bug (e.g., prophylactic of operation), but rather focuses on fundamental components including responder's job position and responding time. A full of 109,903 reviews were analyzed in this study. First, we recorded if the reviews have whatever direction response. 2nd, if at that place was a response, two response characteristics including responder's chore position and responding fourth dimension were recorded.

The second part of this research focused on the response manner and tone. As noted earlier, selected hotels are included in this function. Our option was based on whether a hotel is a chain hotel. Compared with independent hotels, chain hotels are supposed to possess richer experience and more resource in dealing with customers. The system and procedures in chain hotels are more often than not more well-established, enabling them to better satisfy their customers [21]. Because of their functioning in unlike cities and countries, chain hotels may also be more capable in responding to customers with different cultural backgrounds. Therefore, concatenation hotels practice should accept high reference value for luxury hotel operators. Furthermore, while chain hotels belong to the same group, they may need to maintain a certain level of consistency in their operations. Then, their response style and tone may exist similar to their peers in the same group. This theorize, however, had not been examined in previous studies even so and was examined in this study.

This study selected seven hotels from three hotel chains, including (1) Hyatt Regency Hong Kong Sha Tin and (two) Grand Hyatt Hong Kong from the Hyatt Group; (3) Kowloon Shangri-La Hong Kong, (4) Island Shangri-La Hong Kong, and (five) Kerry Hotel Hong Kong from the Shangri-la Group; and (6) Regal Hong Kong Hotel and (7) Regal Airport Hotel from the Majestic Grouping. Given the large scale of bachelor data, only responses written in 2020 were extracted. A total of 1,264 managerial responses were nerveless. The comments and feedback were read word-by-give-and-take to ensure accurate interpretation of the content. Any inconsistent interpretations of the investigators were resolved by word until consensus was achieved. Review valence including positive, neutral, and negative were also recorded.

Findings and Discussion

Characteristics of Management Responses

Amongst the 35 luxury hotels, 19 responded to every review regardless of valence. Although other hotels did not respond to all reviews, they mostly addressed most of the reviews. The findings are consequent with a previous study which interviewed 13 managers [22] and found that most managers openly responded to online positive and negative reviews. A few of them privately contact the customers who posted negative reviews. Only one manager did not answer to customer comments, and that manager believed that bug should be fixed before the customer leaves the hotel and that post-service recovery is useless in enhancing client satisfaction. While all hotels in this study were luxury hotels, people would have a high expectation on the service. Responding to all reviews gives an impression that the hotels value and care every customer. Responding to negative reviews is essential as any ignorance will trigger people's doubt on the hotel's service standard. While potential customers make decision based on the reviews and responses [xiv], a well-written management response may help transform readers to customers. On the other paw, responding to positive reviews is a kind of appreciation which is a practice in line with the spirit of hospitality. Therefore, responding to all reviews should be the best practice for luxury hotels. Despite this, the responses should exist advisedly written because inappropriate responses to an online review tin can be disastrous [22].

Past observing the responder's job titles, all feedback was endorsed past staff at the management level. Some examples were general manager, director of rooms, and manager of invitee relations. Responder'south organizational position can have an influence on customer satisfaction [seven]. Response from someone at management level shows respect to the customers. This practice is especially important in dealing with negative online reviews because the complainants may want the direction to be aware of the service failure they had encountered in the hotel. Prior research reported that changing client attitude should be handled by a credible person [8]. In this regard, compared with operational staff, direction staff should accept advantage. All the same, whether the responses should be fabricated by the general managing director is controversial. While the job title in the response implies it is that person who responds to the review, customers and users would question if it is really the full general manager who is supposed to deal with strategic problems to write the response. In this case, credibility of the hotel will be threatened. Then, the job title effect will backfire.

The analysis shows that most hotels (26 out of 35) responded to reviews within a week. According to the findings near response time to complaints [16], customers deem a response fabricated within 7.9 days equally acceptable. In this sense, the hotels in this report by and large performed well in timeliness. Timely response should exist expected by near (if non all) customers, especially those who raised complaints in the reviews. This expectation should be exceptionally high for luxury hotels as they are supposed to outperform the low-class counterparts in all service aspects. A delayed reaction or service recovery would threaten the reputation of service provider [23]. Complainants would consider timely response as something which a service provider should prioritize because their feeling of doubtfulness and negative emotion need to exist promptly addressed [24]. Therefore, it was even argued that additional compensation is not necessarily more than of import than timely response in addressing a complaint [25].

Response Fashion and Tone

Our perusal of management responses made by the seven chain hotels revealed that repetition of contents in customer review was salient in positive reviews but not in negative reviews. The hotels might not want to reinforce the incidence or service failure in their response to negative reviews. They generally acknowledged the problems and expressed apologies. In dissimilarity, when responding to compliments in positive reviews, the hotels might want users to pay attention to their practiced deeds. It may also exist due to the fact that non much can be written to accost compliments. Information technology is worth-noting that lengthy responses demonstrate hotel'due south serious attitudes toward consumer feedback and enhances customer satisfaction [6]. Therefore, repetition of the compliments is a viable approach. Furthermore, we found that repetition of contents is frequent if hotel staff is praised. This is important equally hotel is a service industry where staff is the nearly valuable capital.

Regarding the contents in responses to positive review, responders generally included structural components suggested in previous studies which are greeting, expressing feelings, thanking reviewers, and continuing relationships, with some of them besides recognizing the reviewer'due south value [9, eighteen, 26]. Notwithstanding, when facing customer complaints, their response way exhibited some variations. This approach is important as personalized responses assistance regain customers' trustworthiness [27]. The personalized messages signal the hotel's concerns about the client's opinions and the high level of hotel appointment [28]. Therefore, in the instance of service recovery, direction response should not be standardized [29].

Response tone can mostly be categorized into conversational tone and professional person tone. A conversional tone refers to an engaging and natural style of organizational advice every bit perceived by consumers [30]. Conversely, professional tone means a relatively standard response which is more respectful, formal, and facts-oriented [8]. An case of response consistent with professional tone is shown below:

"Thank you for taking your precious time to share your experience at K Hyatt Hong Kong.

We are most delighted to hear that you lot enjoyed your stay in a room with stunning view of the harbor, and the exceptional service provided by Osman, Grace, and our Guest Experience Team has enhanced the experience. We will definitely pass on your kind words of praise to the squad to recognize their efforts. Your compliments on our scrumptious breakfast spread is too much appreciated.

Cheers for your perfect rating and we expect forward to welcoming you back in the nearest hereafter" . [ 31 ]

In this example, it tin can be observed that the writing is formal and contains respectful words such as "thank you" and "much appreciated". The response also emphasizes on the facts which the customer appreciated, for examples, "stunning view", "infrequent service", and "scrumptious breakfast spread".

The post-obit shows an instance of response featuring conversational tone:

"Firstly, cheers for staying at Kowloon Shangri-La, Hong Kong for having taken the time to share your feedback with united states of america.

Please accept my sincerest apologies for the inconveniences that y'all accept experienced regarding your room reservation. I have personally reviewed the whole situation every bit described with my Reservations Manager. I concurred with you that you should expect nothing simply a expert experience throughout the reservation process, especially being our loyal guests. Please rest assured that we are able to make necessary improvements to enhance our guest's booking experience.

Despite of this thing, fifty am very thrilled to know that we provided yous with an enjoyable stay with us.

Indeed, information technology's always our pleasure to take care of you. Thank you very much for your compliments about the Hotel and our friendly services. We are looking frontwards to welcoming y'all back at the Hotel again real soon" [ 32 ].

In this example, the tone is relatively less formal, such as the phrases "firstly", "I am very thrilled", and "it'due south". The third and fourth paragraphs of this response sound natural as of s/he was talking to the invitee. This communication manner was recommended when customer reviews are negative because information technology is beneficial for organizational reputation [33]. The natural mode of communication helps shorten the psychological distance between the hotel and guest, which will in plow increment the effectiveness of service recovery [34].

As this study too investigates whether chain hotels within the group had dissimilar response styles and tones, we observed if variations exist during our analysis of the data. We found that the tone used by hotels in Hyatt grouping and Regal grouping was consistent. They commonly used a professional tone in responding to positive or negative customer reviews. Yet, hotels in Shangri-la group adopted both professional person and conversational tone approaches. The adopted approaches seem varying with the responders. We found that ii managers were assigned to reply to online customer reviews. The resident manager preferred using a conversational tone in responding to all types of reviews. In contrast, the general manager preferred using a professional tone, especially in responding to positive and neutral reviews. The findings echo the argument that communication styles vary with the socio-demographic groundwork of responders [35]. While general managing director is at the executive level of the organization, a professional (formal) tone should exist coherent with his/her status. Responder at the middle management level (e.m., resident manager) should be more suitable to use conversational tone.

Regarding response contents, hotels in the same grouping generally adopted like structure components including greeting, expressing feelings, thanking reviewers, and standing relationships, in responses to positive reviews. Withal, at that place were besides exceptions. Majestic Hong Kong Hotel preferred to utilise like sentences to answer to every positive reviews. Nonetheless, Royal Airport Hotel managers employed varied words to answer. On the other mitt, more than variations between concatenation hotels in the same grouping were observed in responses to negative reviews. Grand Hyatt Hong Kong preferred to explain the cause of the problem and was self-justifying in responding to problems that were non caused past the hotel. Conversely, Hyatt Regency Hong Kong Sha Tin would not mention problems in detail or offer explanations but instead directly apologizes for whatever inconvenience acquired.

According to Ho [18], acknowledging problems helps maintain relationships with customers and is the nearly constructive way to reduce customer dissatisfaction. Denying a problem should be avoided in the situation of service failure. Surprisingly, we found that these practices were not consistently pursued. Kowloon Shangri-la Hong Kong tended to answer to negative reviews past acknowledging the bug, whereas Island Shangri-la Hong Kong tended not to mention the problems stated in the customer review while neither best-selling nor denied the issues. Additionally, they typically used like content to respond to negative reviews. Kerry Hotel Hong Kong made relatively brief responses. Although it was willing to admit the problems, it seldom expressed apologies. The findings show that the chain hotels in the same group did not use a consequent approach.

Contributions and Managerial Implications

Online reviews and management responses are both important in influencing client decision making and hotel performance, therefore hotels should devote effort to manage eWOM. In view of the loftier service standard of luxury hotels, useful insights can plausibly exist drawn from their responses. While scholarly attention on luxury hotel direction response was scarce, the current enquiry fills the gap past unveiling the response characteristics, fashion, and tone of this hotel class, and then that a comprehensive theoretical framework can be developed in the hereafter.

Findings of this report show that most hotels responded to all review regardless of the review valence. This practice should be strictly followed by other luxury hotels equally response hints that the hotels value and intendance their customers. In general, the responses were made within a week which tin be a benchmark for luxury hotels in determining the performance indicators of the team responsible for managing customer reviews. As customers more often than not look a prompt response, hotels should strive to reply even quicker but without sacrificing whatever accuracy. The findings testify that responders' task positions were primarily at the management level. This industry norm signals that luxury hotels should not assign an operational staff to reply to the customers. Otherwise, customers might feel disrespectful.

Regarding the response style, professional and conversational tones were used. However, if the review was negative, a conversational tone was salient while message was personalized. These practices appear reasonable as a conversational tone helps shorten the psychological distance between the guest and hotel, while personalized bulletin demonstrates hotel'due south sincerity in addressing the customers' problems. This arroyo is worthwhile for other luxury hotels to follow. On the other manus, the findings generally conclude that chain hotels in the same group adopted dissimilar response styles and tones. The appropriateness of inconsistency approach is controversial. Customers may look consistent service from hotels in the same group. This expectation may be more salient for frequent customers and those who have joined the membership of the hotel group. The grouping may need to provide guidelines for its hotels in their response to online reviews.

Limitations and Future Inquiry

This study has some limitations. Start, while a qualitative approach was adopted, nosotros have to ensure a manageable data size. So, simply recent reviews of a small number of hotels were analyzed. Robustness of the findings was threatened. Future research is recommended to adopt a quantitative approach such as large information analytics. Given the findings of this exploratory written report, hypotheses tin can be developed and validated in the future, for case, the impact of a response on subsequent reviews and the impact of review topics (e.one thousand., safety bug) on management responses. Second, to reduce any language bias, merely English reviews and responses were analyzed. We practise not know if language would make a difference on the findings. Third, this study just considered hotels in Hong Kong. Findings may be different if the case was from other places. Given these limitations, future inquiry is recommended to enlarge the sample size, incorporate not-English language reviews, and focus on hotels in other regions and countries. Comparisons tin also be fabricated between English language and non-English language reviews (and responses), and responses fabricated by chain hotels located in dissimilar regions and countries, besides as responses fabricated past chain hotels versus independent 5-star hotels. Succeeding studies can examine if and how the socio-demographic background of responder influences the responses, especially if the responses are personalized. Some other interesting future written report would be whether responders' names (Chinese versus non-Chinese) would touch on user'southward evaluation of responses. Although the findings and implications were drawn from the practices of luxury hotels, it does not mean that their practices are the best. Future research should evaluate the responses using chief research approach, for case, survey, experiment, and fifty-fifty mixed-method arroyo so that broader and deeper insights can exist drawn.

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Acknowledgement

This project was partly supported by a research grant funded by the Academy of Macau (Ref.: CPG2021-00036-APAEM).

Writer data

Affiliations

1. Schoolhouse of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong S.A.R., China

   Suki Siuki Tam

2. Department of Integrated Resort and Tourism Management, Faculty of Business Administration, University of Macau, Macau Due south.A.R., Communist china

   Lawrence Hoc Nang Fong & Rob Law

3. Asia-Pacific Academy of Economics and Direction, Department of Integrated Resort and Tourism Direction, Faculty of Business Administration, University of Macau, Macau S.A.R., China

   Rob Police

Corresponding writer

Correspondence to Lawrence Hoc Nang Fong .

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Tam, Southward.S., Fong, L.H.N., Law, R. (2022). Management Response to Online Review: The Case of Hong Kong Luxury Hotels. In: Stienmetz, J.L., Ferrer-Rosell, B., Massimo, D. (eds) Information and Communication Technologies in Tourism 2022. ENTER 2022. Springer, Cham. https://doi.org/10.1007/978-3-030-94751-4_12

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• Publisher Name: Springer, Cham

• Print ISBN: 978-3-030-94750-7

• Online ISBN: 978-3-030-94751-four

• eBook Packages: Business organization and Management Business and Management (R0)

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Source: https://link.springer.com/chapter/10.1007/978-3-030-94751-4_12

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