Why Social? The Direct Impact of Your Online Presence on Revenue

by | October 16, 2015

One of the most common concerns we receive from hoteliers is about understanding the value of having a social media presence. While there are many long-term benefits like brand recognition, building credibility, and establishing trust in your company, most business owners are more concerned with the bottom line. The numbers show that social media (and in turn, reputation management) can help drive traffic to your website, increase occupancy, and boost revenue.

Social Increases Website Traffic

why-social-statsA huge amount of referral traffic to websites comes from social media, and it’s on the rise. By the end of 2014, almost 1/3 of website traffic came from social media websites, and a quarter of all website referral traffic came from Facebook alone. At a time when 1/3 of leisure travelers and 1/2 of business travelers prefer to book with OTAs, you need to be harnessing the potential referral traffic from social media.

Aside from website traffic, social media can act as word-of-mouth marketing and a way for soon-to-be travelers to ask for input from friends and family about an upcoming trip. Over 50% of travelers have changed their travel plans after consulting social media – are you there to help them make these decisions?

Reviews Impact ADR and RevPAR

We know that travelers are checking online reviews before making their travel decisions, and travelers are more likely (almost 4 times as much) to stay somewhere with better reviews when the prices are the same. Did you know that travelers will also pay more for the peace of mind of visiting a more well-reviewed property? In controlled experiments, travelers were found to choose more expensive hotels with a better score, and when surveyed, 76% said they would pay more for a hotel that had higher review scores.

How much more? One study found that an increase in 1 star on a 5-star scale would allow a hotel to increase its Average Daily Rate by over 11% and keep the same occupancy. It was also found that a 1% increase in review score would lead to a 0.89% increase in ADR, a 0.54% increase in occupancy, and a 1.42% in RevPAR.

So what do you need to do to benefit from the potential social media has to help your company? Post more often on social media and actively pursue positive online reviews. If you’re not sure where to start or think that you don’t have time for these vital activities, then read more about our social posting and reputation management services.



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