Social media review rating versus traditional customer satisfaction: Which one has more incremental predictive power in explaining hotel performance?

Abstract

Purpose

This paper aims to examine the effects of traditional customer satisfaction (CS) relative magnitude and social media review ratings on hotel performance and to explore which online travel intermediaries’ review ratings serve as the most reliable and valid predictor for hotel performance.

Design/methodology/approach

In 2014, CS and hotel performance data were collected from the internal database of full-service hotels operated and managed by a large hotel chain in the USA. Each property’s social media review ratings data were hand-collected from major online travel intermediaries and social media websites.

Findings

The results of this study indicate that social media review rating is a more significant predictor than traditional CS for explaining hotel performance metrics. Additionally, the social media review rating of TripAdvisor is the best predictor for hotel performance out of the other intermediaries.

Research limitations/implications

This research contributes to the hospitality literature because it examines the incremental explanatory power of social media review rating and traditional CS on hotel performance. Among the leading online travel intermediaries, the findings show that TripAdvisor’s social media review rating has the most salient effect on hotel performance.

Practical implications

The result of this study provides useful practical implications for hotel marketers and revenue managers. This study assists hotel marketers and revenue managers in better allocating their budget for marketing and suggests ways for channel optimization.

Originality/value

The finding of this study will help revenue managers, marketing managers, and hotel owners make decisions regarding their marketing budget allocation to their social media marketing campaign and select the optimal online travel intermediaries as part of their channel management strategies.

Citation

Kim, W.G. and Park, S.A. (2017), "Social media review rating versus traditional customer satisfaction: Which one has more incremental predictive power in explaining hotel performance?", International Journal of Contemporary Hospitality Management, Vol. 29 No. 2, pp. 784-802. https://doi.org/10.1108/IJCHM-11-2015-0627