Guest reviews, room price more valuable than brand name in hotel selection

Reviews and ratings from prior guests carry more weight than a hotel’s brand name as consumers consider where to book future stays.

A survey from Expedia Group Lodging Partner Services found guest ratings have a significantly stronger influence than brand value when consumers are picking a property. The findings indicate there is a 72% chance that a consumer will value guest ratings higher than a hotel brand.

In fact, the research found consumers are willing to pay 35% more for a hotel rated 4.4 than for one rated 3.9, and they will pay 24% more for a 3.9-rated hotel versus one rated 3.4.

Thanks to the rise of online marketplaces and the transparency they have created, Expedia says independent hotels have an opportunity to better compete with branded hotels if they focus on creating a guest experience that generates positive reviews and ratings.

“Peer, or guest, ratings have essentially leveled the playing field for independent hotels, as more potential guests seek out third-party endorsements for hotel properties they are considering,” says Abhijit Pal, head of research at Expedia Group.

“Independent hotels today can compete on a global scale with brands because distribution and technology enable them to compete, and quality is within their control.”

Expedia also suggests independent hotels “demand more help from OTAs and travel management companies.”

“This will ultimately require working closely together to communicate the value of independent offerings to corporate travel managers and creating compelling loyalty programs for business travelers who want to collect points from independent hotels,” the report states.

The survey also confirmed that price is still the most influential factor in hotel selection, for both well-known and unknown brands.

“While consumers want the best deal on travel bookings, their individual selections ultimately reflect their values,” Pal says.

“The consumer searching for a budget accommodation will look for the best value within their constraints, while someone with more disposable income may prefer a luxury option and be willing to pay more per night, but not more than they have to.”

Although price and guest ratings outweigh brand, Expedia says brand does factor a bit higher than other hotel attributes such as room images, remodel callouts or hotel star ratings.

The survey of 903 consumers in the United States was conducted by Expedia Group and Unabashed Research.