Should Hotels Respond to Online Reviews?

I chose to comment on this article because i think the opinion of the writer is very important and i totally agree with him.
I think it is important for an hotelier to seriously take into account the feedbacks from the customers since they give an objective opinion on which elements should be improved by the hotelier.
Moreover i think that the fact to answer to a negative comment will show the customer that his opinion is important to the hotelier and that measures are taken to do better. To me, it will reduce the terrible impact of a bad word of mouth and maybe, make the unsatisfied customer want to come back.

Ebusiness

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IF TRAVEL IS DOWN, WHY ARE TRAVEL WEBSITES DOING WELL?

I chose this article because it illustrates the paradox faced by the travel industry during the economic crisis.
Indeed, during the economic crisis, the budget dedicated to leisure, and therefore travel, is the first to decrease. This phenomenon totally explain the fact that the travel industry is going down.
However, thanks to the OTAs or other Reverse Auction websites, travel websites are generating more revenue than expected.
This can be explain by the fact that those websites are proposing better best rates or special promotions than the hotels websites.
Eventhough those sites can be persued as rivals by the hoteliers because they have to pay a commission foreach reservation and propose discount and maybe sell their rooms at a lower price than expected, i think the hoteliers should see them as partners since they can get rid of their distressed inventory and, therefore, increase their revenue.

REVERSE AUCTION WEBSITES

Here is my presentation on reverse auctions websites. I chose the example of Priceline in order to illustrate it.

Reverse Auction Websites Analysis

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03/12 In Class Exercise : the characteristics of OTAs

1. Customer reach

According to the destinations, hotels (chains, individuals...) the top activities and the promotions offered on their websites, the OTA's can target a specific clientele (leisure or business...).
For example, Orbitz is more oriented in leisure customers since the top destinations are Las Vegas, Hawaii, Orlando and Anaheim...

2. Customer communication methods

The OTAs can first communicate on their partners websites.
For example, Expedia are communicating on the SNCF website.
They can also buy advertising space on other websites.
They can create on account on different social network sites like Facebook and Twitter.
They can offer a newsletter program to their customers.
Finally, they can make their promotion during special fairs.

3. Types of products

All the OTAs are proposing packages combining hotels and transports. These services can also be booked individually. People can also buy special insurance linked to their travel.

4. Special Promotion capabilities

Best rates, mysterious sales, last minute offers, deal detectors (alert),special conditions packages (3 nights at the price of 2).
Orbitz also proposes a special assurance : If another Orbitz customer books the same pre-paid hotel as you for less, you'll get a cash refund for the difference automatically.

5. Online booking conditions and fees

The OTAs define the conditions of booking with the hoteliers and the fees are defined in the contract.
We know that Orbitz doesn't ask for any fees for the flight tickets.

6. Affiliate programs

Yes. OTAs can be affiliated to different affiliation programs with car rentals...

7. Affiliate programs payment structure

An OTA ca, put a ban leading the clients to another website. If these clients buy something on this site, the OTA will receive a commission.

8. Info for hoteliers

In some OTAs hoteliers can find information that will help them take the decision to join the OTA.
For example, Expedia has made a video

Orbitz

Orbitz

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