The Influence of E-wom on Hotel Occupancy Rates

Abstract

Purpose The importance of reviews from the real customers has increased in decision making process because they act as the most reliable and valid predictor of performance of hotels. Different studies have been conducted to see the results of online reviews from the customer in decision making process in hotel industry. This paper aims to determine the impact of online reviews and electronic word of mouth on hotel occupancy rates. The effect of Electronic Word of mouth Score, Electronic Word of mouth Authenticity and Electronic Word of mouth Volume and their effect on hotel occupancy rates will be examined. Design/Methodology A research model was developed and the model was then examined with the help of date that was collected from different people of Islamabad and Rawalpindi. The target market was the people living in twin cities Islamabad and Rawalpindi. 150 people were given questionnaires and then data was collected. Correlation and regression analysis was used and later the results were analyzed to see the impact of online reviews and the authenticity on hotel performance and its occupancy rates. Findings The results were according to the hypothesis which was made. The results showed that online reviews and electronic word of mouth positively influence the behavior of other customers in hotel industry. Keywords Hotel Occupancy Rates, Online reviews, Electronic word of mouth score, Electronic word of mouth Authenticity, Electronic word of mouth Volume. 3 Originality/Value This research paper contributes in understanding and analyzing the relationship between online reviews shared by the customers and their effect on occupancy rates with the help of sample consisting of a wide range of hotels. Practical Implications The findings of the research study provide a strong association between online reviews and hotel occupancy rates in hospitality industry. This paper suggests managing the hotel systems in order to increase hotel occupancy and performance of the hotels.