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Hotel reviews and ratings are a hot topic of discussion and it’s getting hotter. Recent PhoCusWright research finds 43% of travelers are influenced by social media and that two-thirds of hotel reviews are submitted on Online Travel Agency sites, with the remaining 34% posted on travel review sites. However, various groups are also accusing TripAdvisor of not doing enough to identify and eradicate phony hotel reviews.

Five-star Hotel Plaque
Creative Commons License photo credit: jcberk

Hotel ratings and reviews are an invaluable resource for travelers, but with no industry standards and a black-hat element of the industry transitioning from Online Reputation Management (ORM) to Fake Review Optimization (FRO) can they be trusted?

All of the action isn’t necessarily taking place online. Earlier this year, Forrester Research found 29% of leisure travelers would work with a traditional agent, if they could find a good one. That statistic is sharply up from 23% in 2008.

To make matters worse, there are no global standards for hotel ratings, subjecting the prospective hotel guest to a litany of rating scales, often graded by vague, inconsistent, and frequently contradictory measures.

Regardless, the stakes have now been raised dramatically. User generated reviews now factor into search engine results, so enterprising Search Engine Optimization specialists, perhaps recently thwarted by Google’s Panda updates to its search algorithm, have now turned their sites on exploiting the system by doctoring user reviews to enhance search engine rankings.

Some intrepid pioneers brazenly promote their ability to bury negative reviews with positive ones originating from 10,000+ IP addresses and thousands of email addresses. Not surprisingly, there is no mention of these reviews originating from actual guests, a blatant violation of US Federal Trade Commission official guidelines governing endorsements and testimonials. Similar rules prohibit such black-hat practices throughout Europe and elsewhere.

Google itself is also making waves in the review space as it solidifies its local strategy surrounding its Places pages – already a hotbed of activity with hotel price ads pitting hotels against online travel agencies, this time using context sensitive inventory and pricing as the weapons of choice. Simultaneously, with Google’s launch of Google Plus, the decision to require individuals to identify themselves only by using real names adds an additional method to structurally inhibit illegitimate reviews from anonymous sources.

Perhaps Google’s most bold move is its purchase of Zagat, and its highly curated, yet crowd-sourced review platform. With Google internalizing a respected review platform, undoubtedly with an idea of expanding it dramatically, it gets much closer to the deep content that drives customer engagement, validation and relevance. This is particularly important when leveraging semantic search technologies capable of introducing much needed context into travel search processes.

Who Do You Trust?

So, where do travelers look for recommendations regarding their lodging choices? The burning question is more importantly, whose advice do they truly trust and act on when making a hotel reservation?

Considering the fact that I interact with a large number of sophisticated travelers, I prepared a brief 1-page survey to find out whose hotel reviews and ratings the travel cognoscenti trust. The resulting 34 potential sources are roughly divided into three categories – types of individuals, prominent hotel review sites and general categories of sites hosting reviews.

The survey has been designed with a single question and should take only a couple minutes to complete.

Please Scroll Down to rate more sources of Hotel Ratings and Reviews.

Thank you for taking the time to complete the survey. I am expecting to see some surprising results.

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It was an honor to be invited to give the closing keynote address for The Leading Hotels of the World 2011 Sales, Marketing and Distribution Conference at the Kameha Grand Bonn in Bonn, Germany.

Leading Hotels of the World members understand luxury travel

Challenge: Identify a group that better understands the needs of luxury hotel guests than members of The Leading Hotels of the World

The topic of the presentation was Deconstructing Distribution – It’s all about the Customer with a focus on the customer, the channels and the future.

Setting the scene, the luxury hotel industry continues to recover from its steepest decline on record that unfortunately coincided with a period of momentous technological advancement – particularly mobile and social media that have significantly empowered consumers.

As a result, hotels and resorts target a changed guest, armed with access to information and backed by a network of trusted advisers – both corporal and virtual. The hotels also face an impossibly complex variety of distribution channels that have expanded into social networks and location-based services. continue reading →

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Henry Harteveldt, Forrester Research‘s Vice President and Principal Analyst for Travel opened his keynote for the OpenTravel Alliance 2011 North American Advisory Forum with Bette Davis’ famous quote as Margo Channing in All About Eve, “Fasten your seat belts, it’s going to be a bumpy ride.”

Fasten your seat belts, it's going to be a bumpy ride
Creative Commons License photo credit: Jerad Heffner

Travel distribution executives are warned to fasten their seat belts. They may be encountering more than a bump.

Speaking to over 100 travel industry distribution executives at the Aria Resort and Casino in Las Vegas, Henry’s premise was that when the greater degree of customization demanded by consumers collides with the direct connections proposed by suppliers and is further complicated by market forces pushing for new Global Distribution System business models, the flight will encounter considerable turbulence.

The following is a synopsis of some key factoids and snippets of Henry’s always insightful perspective.

Travel Industry

  • Overall Retail Sector (all products) is up 13% year to date through March, 2011
  • Airlines Reporting Corporation reports that Airline Revenue is +10.7%, but the number of passengers flying is down 1.6%
  • Fuel price increases are removing discretionary income from travelers prior to the peak summer travel season
  • 30% of travel suppliers report that the booking window in 2011 is shorter than in 2010

continue reading →

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First, thanks for all the positive feedback from my earlier post, What’s Wrong With the US Hotel Industry Recovery? Regardless of the pithy and enlightened analysis provided (my personal and unbiased self-assessment) there was a select group of readers that remained unappeased.

More Numbers
Creative Commons License photo credit: Patrick Gage

For those who requested a broader statistical comparison, all I can say is 'You want more numbers... Are you serious?'

There appear to be two categories of hotel industry data aficionados – gourmets and gourmands. You may know them better as the Smith Travel Research, Colliers PKF and PricewaterhouseCoopers fanboys & fangirls you see hanging out by the stage at the Hotel Data Conference.

The gourmands revel in devouring every data point in sight. They like their data raw and in large quantities. One would imagine these folks drink their wine from boxes and buy sides of beef that they cut themselves. Not afraid of getting their hands dirty, they have no use for utensils, but prefer to dig their teeth directly into their meal like lions savaging their prey.

The gourmets are a but more refined – They savor the nuanced flavors of the freshest, meticulously prepared, and most creatively presented information available. They prefer the finest cuts from the finest chefs, with portion size and cost being irrelevant as long as the quality is there. They even look at well aged data like wine – given expert handling and loving care, even the oldest statistics can yield valuable insights and points of comparison for the latest growths.

Despite my initial inclination to help organize interventions to get these individuals into some form of hospitality stats junkie 12-step program, I cooked up a few more data dishes as a belated holiday buffet. continue reading →

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What’s Wrong With the US Hotel Industry Recovery?

by RobertKCole on December 20, 2010

If the US economy is in recovery, why is the US hotel industry still in rehab?

Online Hotel Booking Junkie
Creative Commons License photo credit: nataliej

It starts out innocently enough... A couple spot promotions and internet-only specials. Then it spirals into merchant rates, opaque deals and most-favored nations clauses - such goes the story of hotels becoming online travel volume junkies...

A year ago, I authored a post titled US Hotel Performance – Time for a Baseline Reset? – it was a follow-up to a post from four months earlier titled US Hotel Industry Recession Enters New Rate Erosion Phase.

In the 12-16 months since those posts were written, I am very pleased to report that hotel demand in 2010 has grown more rapidly than predicted by myself, Smith Travel Research, PricewaterhouseCoopers and Colliers PKF Hospitality Research – I love being wrong – especially among such esteemed company.

However, this better than expected uptick has resulted in considerable discussion painting a rosy picture of the US hotel industry recovery. Based on many glowing reviews citing double-digit occupancy percentage (Occ %) growth and solid increases in Revenue per Available Room (RevPAR), one can easily arrive at the conclusion that the US hotel industry recovery is in full swing and that the industry is nearly back to normal.

Unfortunately, most of these evaluations only reference US hotel industry performance relative to 2009, which was the worst year on record for hotel performance. It is not particularly beneficial to benchmark the industry against those record depressed levels, so it is much better to frame the recovery relative to hotel performance in earlier periods.

On that basis, the US Hotel Industry has recovered to somewhere near 2005/2006 business levels.

2011 will undoubtedly be a challenging year for the US hotel industry. Certainly results will exceed 2010, and be well beyond the despair of 2009, but nowhere near levels that could lead one to characterize the hospitality business as healthy. continue reading →

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Changing Global Travel Trends From 2010 to 2020

by RobertKCole on November 7, 2010

Amadeus recently sponsored a research study evaluating the profile of the global travel industry in 2020. The report, titled The Travel Gold Rush 2020, prepared by Oxford Economics, arrived at the conclusions that the greatest trends would be a “dramatic realignment” of travel spend with Asia-Pacific visitor arrivals accounting for 22% of global traffic and Asia-Pacific residents representing 32% of global travel spend in 2020.

Panning for Visitors in Travel Gold Rush
Creative Commons License photo credit: ToOliver2

Not much has changed in the 160 years since the California Gold Rush. The winners will still need to get there first, and having some good luck wouldn't hurt either.

While these statistics are accurate, upon closer examination of the figures, a number of more subtle changes are forecast to occur – many that may be surprising and unexpected for individuals that may have seen the accompanying infographic that depicted comparatively large golden piles of coins and large pink rays of growth emanating from the Asia-Pacific region.

The Asia-Pacific growth projected is indeed impressive, yet the visual impact of the graphics overshadow the digits indicating the percentage share of overnight foreign visitor arrivals, resident trips abroad, and the related travel spend associated with those visitors and residents respectively.

What may be difficult to discern from briefly glancing at the infographic is that Europe will continue to exhibit a dominating share of the 2020 global travel market, with more than half of resident trips abroad originating from Europe and 40% of the foreign visitor spend transacting in Europe.

Taking a closer look at the Travel Gold Rush 2020 Infographic, the great news is that global travel spend is projected to double between 2010 and 2020, but the design does not illustrate the doubling of the travel pie.

Amadeus Travel Gold Rush 2020 Inforgraphic

A beautiful Infographic does not always tell the full story. In this case, it is difficult to see that Europe will produce 400 million more outbound travelers and receive nearly double the inbound visitors relative to the Asia-Pacific region in 2020.

The study segments its travel projections by three dimensions:

  • Direction (Inbound or Outbound)
  • Region (Asia-Pacific, Europe, North America, Latin American, Middle East and Other)
  • Timeframe (1995, 2000, 2005, 2010 and 2020)

This discussion will focus solely on the 2010 and 2020 figures, with the objective of highlighting trends impacting foreign visitor arrivals and resident trips abroad, plus how the inbound and outbound traffic balances out to identify any big winners and losers. continue reading →

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Travel Industry Site Traffic Rebound – Not a Hotel Slam Dunk

December 15, 2009

Compete produced an analysis that indicates traffic to hotel brand and Online Travel Agency hotel specific web pages have increased faster than airline and car rental sectors, indicating a faster path to recovery. Unfortunately, the increase in site traffic has not translated to improved hotel performance as hotels continue to deeply discounting their product to shift market share from competitors. As the hotels fight to support occupancy and average rate, share of leisure travel bookings is shifting away from hotel brand sites to the OTAs.

With the steepest drop in US hotel net operating income on record and non-performing Commercial Backed Mortgage Securities hotel loans hovering close to 15%, the US hotel industry appears to be preparing for a difficult stretch that will continue to provide travelers with excellent hotel values, but test the patience and wallets of hotel owners.

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US Hotel Performance – Time for a Baseline Reset?

November 12, 2009

US hotel industry performance has not yet shown signs of recovery. Declines in all key industry metrics – occupancy percentage, average daily rate (ADR) and revenue per available room (RevPAR) continue to decline in 2009 when compared to comparable periods in 2008. Smith Travel Research (STR), PriceWaterhouseCoopers(PWC) and PKF International (PKF) all forecast that ADR and RevPAR will continue to decline in 2010. Reviewing peak period weekly performance statistics, it appears that the US hotel industry needs to prepare for “A New Normal” with lower corporate and group business and value oriented leisure travelers when supply and demand reach equilibrium.

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Socialnomics Should Not Be Voodoo Economics

August 27, 2009

Socialnomics runs into some fact checking issues with its video heralding the incredible growth of social media. The video inadvertently highlights the key issues most frequently cited by social media critics: First, not referencing its obvious creative source – the Karl Fisch, Scott McLeod and Jeff Brenman “Did you Know” work. Additionally, the difficulty in measuring the impact of social media is amplified by several statistics turning out to be grossly inaccurate or based on unsubstantiated opinions.

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