William

TripAdvisor rankings are based on their own metric called “The Popularity Index,” a proprietary algorithm that determines rankings based on the quantity, quality and frequency of reviews for any given property. But how, exactly does ranking translate to room nights?

We’ve known for some time that even a small change in TripAdvisor ranking can have a significant impact on web traffic – the higher the ranking, the higher the traffic to the hotel’s website.

But traffic, these days, doesn’t mean much.  What we want is qualified traffic.  How much of that traffic from TripAdvisor is actually converting online?

That’s hard to say, to be honest.  It stands to reason, however, that if a large number of people are using TripAdvisor to research your property, then your ranking must play a pretty sizable role in your bookings.

To put this theory to the test, we took a random sampling of the MICROS eCommerce client base. The data speaks for itself – the closer a property is to a Number 1 ranking on TripAdvisor for its given market, the greater its direct online bookings.

The information breaks down like this:

* Properties ranked #20 in their market see 10% more directly booked room nights per month versus those ranked #40
* Properties ranked #10 in their market see 10% more directly booked room nights per month versus those ranked #20
* Properties ranked #5 in their market see 9% more directly booked room nights per month versus those ranked #10
* Properties ranked #2 in their market see 7% more directly booked room nights per month versus those ranked #5
* Properties ranked #1 in their marketing see 11% more directly booked room nights per month versus those ranked #2

Read The Full Story at Micros ECommerce



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