Digital marketing strategies, online reviews and hotel performance

Abstract

We investigate to what extent digital marketing strategies (such as having a digital marketing plan, responsiveness to guest reviews, and monitoring and tracking online review information) influence hotel room occupancy and RevPar directly, and indirectly through the mediating effect of the volume and valence of online reviews they lead to, and to what extent this mechanism is different for different types of hotels in terms of star rating and independent versus chain hotels. The research was carried out in 132 Belgian hotels. The results indicate that review volume drives room occupancy and review valence impacts RevPar. Digital marketing strategies and tactics affect both the volume and valence of online reviews and, indirectly, hotel performance. This is more outspoken in chain hotels than in independent hotels, and in higher-star hotels than in lower-tier hotels.