1. REVIEWPRO
Reputation drives revenue:
How traveler reviews affect
hotel pricing power
Webinar
Melle Cecilia Filippi
MBA 2B

2. What is ReviewPro?
 Founded in 2008 with the idea that social medias could be used to
drive revenue growth by increasing guest satisfaction.
 Today: it has thousands of hotel clients in more than 70 countries
around the world
 Analysis, customer intelligence, competitive benchmarking and
automative reports all provide insight for action.
 Daniel Edward Craig invites experts in order to discuss highlights of
the research, its implications and how hotels can use these data to
optimize rates, distribution channels and revenue.
 Measure of guest satisfaction through guests’ reviews
 Competitors analysis through competitive quality index
 Performance measure

3. Three guests…
 Chris Anderson, Associate Professor in Cornell
University School of Hotel Administration
 Victoria
Edwards, Co-founder of Buckhiester
Management
 Fernando
Vives Soler, Global Director of Revenue
management for Meliã Hotels International

4. What is GRI?
 « GRI » stands for Global Revenue Index which is the « Online
guest satisfaction index ».
 Has more than 1,000 of clients today
 Can be used for any types of hotels
 Has the ability to analyze reviews from more than 90 OTAs and
guests reviews’ websites
 It takes into account a quantitative analysis or review scores
from all major OTAs and reviews’ websites.
 GRI is used to track operational and service excellence as well
as performance compared to direct competitors  Analyze an
establishment improvement over time

5. The results
 1st analysis from Cornell University, the 1st hospitality
management program which is now world leader in this field:
 Guests’ reviews and social medias used a public data showing
relationship between reviews and bookings
-Impact of Users Generated Content (UGC) and social medias
upon guests’ purchasing decisions and then hotel performance
 Relationship between online reputation and hotel performance
through three points:
- Performance (Revenue Per Available Room)
- Pricing power (Average Daily Rate)
- Occupancy (Demand)

6.  Analysis of Travelocity which is a major North American Online
Travel Agency
 Increase in review score by 1 point (3.8 to 4.8) increases the
odds of being booked by 13.5% and can increase price by 8%
while maintaining probability of purchase and market share
 Consistent results regarding the impacts with several other OTAs

7.  2nd analysis from Victoria Edwards:
 Develops a new synergie for the Revenue Management finding
out a correlation between Marketing (demand creation), Sales
(demand capture) and Revenue management (demand
management).
 Three generations of Revenue managers:
- Generation 1: revenue manager is the reservation manager
-Generation 2: manager more sophisticated, with more tools and
more education
-Generation 3: Actually combines all the elements, being the
most efficient

8.  Customer purchase is based on Value
 Value = Price + Product (service and quality)
 You can compare your hotel value with the competitive set
 Indexes from review sites provide pricing signals
 You have to dedermine the « weight » you place on metrics
provided by reputation management reports: how to use these
metrics?
 Value rating on TripAdvisor, Expedia…  The quality of value
index will be a driving force to your pricing decision

9. - Compare variance month over month
-Compare GRI to your pricing strategy during the same period
(rate shopping tool)
- Compare your STR index balance to GRI
- Compare your GRI with the competitive set GRI
- Compare your forecast occuracy with your GRI variance
- Drill down to see how your rooms score
-Look at all of these metrics in terms of forward looking indicators
such as the rate shopping tools and the predictive forecast sites

10.  3rd analysis from Fernando Vives Soler: Case study of Meliã
Hotels International
 You have to identify the RM tools you can use to have a
competitive advantage within a hospitality market more and more
challenging and competitive
 Challenging times because the demand isn’t really growing
except in the Middle-East and North Africa
 How to push the hotel pricing policy?
 Use the new performance indicator such as the « Quality
Penetration Index » (QPI) instead of the traditional and former
performance indicators (Market Penetration Index, Average Rate
Index, Revenue Generator Index…)
 QPI= Global Review Index of my hotel / Average Global Review
Index of the competitive set

11. Key takeaways
 Reviews drive revenue
 The Revenue manager role must become more and more
strategic and analytical
 Review metrics must be integrated as a key component of
revenue management strategy
 Comparison of your review index (with rate, occupancy and
RevPar indexes…) is paramount to maximize revenue and stay
ahead of competition (finding optimal rates, positioning in the
marketplace…)

12. Conclusions
 Controlling your online reputation is definitely essential and
ReviewPro is a great tool to help you do that. Through this
competitive tool, you have the opportunity to react more quickly
to guests’ feedbacks and find solutions when it is needed.
 In a word, revenue is directly linked to reputation as a good
online reputation with positive guests’ reviews has a positive
impact on demand, guest satisfaction and, finally, revenues.