Skip to main content

4 Negative Reviews Equals to a 70% Loss of Potential Customers

In a recent blog post, discusses just how important online reviews are for the hospitality industry. While most hoteliers and restaurateurs are certainly concerned with providing excellent customer service, it is becoming ever more important that those positive experiences end up online for future customers to read.
Just how much of an impact can online reviews have on businesses? Take Yelp, for example. For every star an independent restaurant gets in its rating on Yelp, its sales revenue will increase approximately 5-9%, and a restaurant with a rating improved by just half a star is much more likely to be full at peak dining times. At the same time, 22% of consumers will not purchase a product after reading just one negative review about it; after three negative reviews that number jumps to 59%. And as many as 90% of consumers read less than 10 reviews before forming an opinion about a business which means these decisions being made are made quickly, without much hesitation.
These facts should especially concerning to the hospitality industry, because restaurants and hotels are among the top five industries affected by negative online reviews. Data reveals that 59% of consumers say that travel review sites have the most influence on their hotel booking decisions. Just how much of an influence? Seventy-six percent of travelers say they're willing to pay more for a hotel with higher review scores. Meanwhile 61% of consumers have read online reviews about restaurants, which is more than any other business.

Hospitality need not fear that it is at the mercy of online reviewers. The industry has at its disposal a powerful tool: social media. For instance, 55% of consumers use Facebook as a place to learn more about brands and when retailers replied to negative reviews on social media and online ratings sites, a third of customers either deleted their original negative review or even replaced it with a positive review. And nearly a fifth went on to become loyal customers, making another purchase.

For more statistics and some infographics depicting this information, please visit:
This ad will auto-close in 10 seconds