Asymmetric relationship between customer sentiment and online hotel ratings: the moderating effects of review characteristics

Abstract

Purpose

Online hotel ratings, a form of electronic word of mouth (eWOM), are becoming increasingly important to tourism and hospitality management. Using sentiment analysis based on the big data technique, this paper aims to investigate the relationship between customer sentiment and online hotel ratings from the perspective of customers’ motives in the context of eWOM, and to further identify the moderating effects of review characteristics.

Design/methodology/approach

The authors first retrieve 273,457 customer-generated reviews from a well-known online travel agency in China using automated data crawlers. Next, they exploit two different sentiment analysis methods to obtain sentiment scores. Finally, empirical studies based on threshold regressions are conducted to establish the asymmetric relationship between customer sentiment and online hotel ratings.

Findings

The results suggest that the relationship between customer sentiment and online hotel ratings is asymmetric, and a negative sentiment score will exert a larger decline in online hotel ratings, compared to a positive sentiment score. Meanwhile, the reviewer level and reviews with pictures have moderating effects on the relationship between customer sentiment and online hotel ratings. Moreover, two different types of sentiment scores output by different sentiment analysis methods verify the results of this study.

Practical implications

The moderating effects of reviewer level and reviews with pictures offer new insights for hotel managers to make different customer service policies and for customers to select a hotel based on reviews from the online travel agency.

Originality/value

This paper contributes to the literature by applying big data analysis to the issues in hotel management. Based on the eWOM communication theories, this study extends previous study by providing an analysis framework for the relationship between customer sentiment and online hotel ratings from the perspective of customers’ motives in the context of eWOM.

Citation

Lai, X., Wang, F. and Wang, X. (2021), "Asymmetric relationship between customer sentiment and online hotel ratings: the moderating effects of review characteristics", International Journal of Contemporary Hospitality Management, Vol. 33 No. 6, pp. 2137-2156. https://doi.org/10.1108/IJCHM-07-2020-0708