Many travel companies do not manage there ratings strategically, new research from pricing specialists Simon-Kucher & Partners has revealed.
In a study titled Trend Radar 2019 – The Rating Economy (Focus on Tourism), the firm concluded that only about 20 percent of the firms surveyed currently have an effective strategy to deal with bad ratings.
This is despite the fact that around 60 percent of travelers worldwide use customer ratings in their purchasing decisions when planning vacations, while 43 percent regularly leave ratings themselves.
The study found that, when making a purchase, ratings are the third most important factor after product features and price.
Many companies already recognize the key role ratings play in business with 55 percent of companies surveyed consider ratings “very important” – they just weren’t doing enough to act on them.
Dimitris Hiotis, global head of the leisure, travel and transportation practice and at Simon-Kucher, said: “Hoteliers, in particular, have known for years that customers’ trust in established providers can decrease very quickly due to low customer ratings.
“Our project experience confirms that there is a clear correlation between damage to reputation and weaker sales figures. But what’s more surprising is that, when making strategic decisions, the companies surveyed only incorporate these findings to a limited extent.”
Amongst the study’s finding was the fact that just six percent draw conclusions from direct customer feedback to improve their product and quality management.
Hiotas added: “There’s enormous untapped potential here. If companies focus on four or five of the most common criticisms, they can reduce their risk of receiving low ratings,” “
“Ideally, this will also prevent the number of bookings from falling. In fact, 33 percent of the consumers surveyed said that they had decided not to book a particular offer due to poor ratings or opted for a higher-rated alternative.”