How valuable are online reviews?
Posted: Sat Dec 07, 2024 9:25 am
Andres Romero
CEO and Project Manager
June 23, 2016
The influence of online reviews on purchasing decisions for hotels and other tourism businesses has been accepted in recent times. However, less known is the financial impact of a bad review or a business's lack of response to a negative review.
A study by Barclays entitled “The Feedback Economy” shows it from another angle. British firms could be in a position to improve their numbers by recognising the growing power of online reviews and dealing with them appropriately.
The company has shown some numbers on how this could be quantified over the next 10 years.
Barclays has looked at the growing ghana email list
potential of the accommodation sector and says economic modelling shows that an increase in consumer use of feedback sites through reviews, combined with the sector becoming more receptive to these sites, could represent a £3.2bn boost to its economy.
The report says:
“Our model is based on projections of economic performance sector growth (gross value added) for the period 2015 to 2030. The base projection, which assumes current trends in business and consumer behavior, predicts that GVA will grow by an average of 2.6% over the next 10 years.”
He goes on to say that “greater receptivity to increased feedback” means that GVA could grow by an additional 0.07% annually.
Barclays says this equates to an outflow of £555m per year by 2026, compared to BAU growth rates.
To meet the objectives of the Feedback Economy study, Barclays also conducted consumer research and assessed the opinions of businesses in the accommodation sector.
Consumer review highlights include:
59% of consumers say online feedback helps them decide which place to visit and 45% say they are more likely to leave a review now than they were 18 months ago.
Younger age groups are more likely to report this, with 70% of millennials saying they are a part of the decision-making process.
Nearly a third (29%) of those aged 18 to 24 and a quarter (27%) of those aged 25 to 44 rate online reviews as one of the three most important factors influencing their decision about where to stay – alongside elements such as value for money and customer service. That compares with 18% of those aged 65 and over.
CEO and Project Manager
June 23, 2016
The influence of online reviews on purchasing decisions for hotels and other tourism businesses has been accepted in recent times. However, less known is the financial impact of a bad review or a business's lack of response to a negative review.
A study by Barclays entitled “The Feedback Economy” shows it from another angle. British firms could be in a position to improve their numbers by recognising the growing power of online reviews and dealing with them appropriately.
The company has shown some numbers on how this could be quantified over the next 10 years.
Barclays has looked at the growing ghana email list
potential of the accommodation sector and says economic modelling shows that an increase in consumer use of feedback sites through reviews, combined with the sector becoming more receptive to these sites, could represent a £3.2bn boost to its economy.
The report says:
“Our model is based on projections of economic performance sector growth (gross value added) for the period 2015 to 2030. The base projection, which assumes current trends in business and consumer behavior, predicts that GVA will grow by an average of 2.6% over the next 10 years.”
He goes on to say that “greater receptivity to increased feedback” means that GVA could grow by an additional 0.07% annually.
Barclays says this equates to an outflow of £555m per year by 2026, compared to BAU growth rates.
To meet the objectives of the Feedback Economy study, Barclays also conducted consumer research and assessed the opinions of businesses in the accommodation sector.
Consumer review highlights include:
59% of consumers say online feedback helps them decide which place to visit and 45% say they are more likely to leave a review now than they were 18 months ago.
Younger age groups are more likely to report this, with 70% of millennials saying they are a part of the decision-making process.
Nearly a third (29%) of those aged 18 to 24 and a quarter (27%) of those aged 25 to 44 rate online reviews as one of the three most important factors influencing their decision about where to stay – alongside elements such as value for money and customer service. That compares with 18% of those aged 65 and over.