A First Approach to Measuring the Impact of Changes in Online Reviews on Hotel Room Prices
Upcoming SlideShare
Loading in...5
×
 

A First Approach to Measuring the Impact of Changes in Online Reviews on Hotel Room Prices

on

  • 330 views

 

Statistics

Views

Total Views
330
Views on SlideShare
330
Embed Views
0

Actions

Likes
0
Downloads
4
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

A First Approach to Measuring the Impact of Changes in Online Reviews on Hotel Room Prices A First Approach to Measuring the Impact of Changes in Online Reviews on Hotel Room Prices Presentation Transcript

  • A first approach to measuring the impact of changes in online reviews on hotel room prices Igor Ibarguren, Ibai Roman, Jon Kepa Gerrikagoitia, Aurkene Alzua-Sorzabal CICtourGUNE, Spain ENTER 2014 Research Track Slide Number 1
  • Agenda • Introduction – Problem – Previous research • Method • Expected results ENTER 2014 Research Track Slide Number 2
  • Introduction Problem •Customers choose a destination and then select accommodation based on price and available rooms (Wu, Zhang, & Fujiwara, 2011), hotel location, category, services, facilities and third party experiences (Dickinger & Manzanec, 2008) •Travel agencies used to recommend a hotel depending on previous experiences ENTER 2014 Research Track Slide Number 3
  • Introduction • The user generated content (UGC) changed the information flow to an electronic word-of-mouth paradigm • There are several studies analysing the influence of online reviews on sales of products such as books (Clevalier & Mayzlin, 2006), but it is more pronounced on experience goods as they require consumption before knowing their quality ENTER 2014 Research Track Slide Number 4
  • Introduction • The Internet has changed the global business scene. The development of IDS has brought new opportunities (Van den Poel & Leunis, 1999) • Most hotel room attributes such as locational and non-locational attributes cannot change in time. Since online, adjust prices rating can be a deciding factor among similar hotels with similar prices ENTER 2014 Research Track Slide Number 5
  • Related Work Previous research •Ye, Law, & Gu (2009) studied the effect online reviews had on hotel room sales on the biggest Chinese IDS •Zhang, Ye, & Law (2011) used the hedonic price model to quantify the effect the quality of hotel attributes have on room price based on online reviews ENTER 2014 Research Track Slide Number 6
  • Related Work • Studies focused on locational attributes as price determinants: – Espinet, Saez, Coenders, & Fluvia (2003) and Alegre, Cladera, & Sard (2013) focused on sun and beach destinations in different parts of Spain and both concluded that proximity to the beach is a determining factor on room price. – Distance to other places, such as the city centre, was only found to affect prices on some destinations, while the polarity of the effect varied between customer nationalities. ENTER 2014 Research Track Slide Number 7
  • Related Work • Studies focused on locational attributes as price determinants: – A view of the sea was also found to increase the value of the room in Mediterranean locations (Fleischer, 2012). – Other studies concentrated on room specific attributes and identified hot-tub, private bath and a larger room to be determinant for bed-and-breakfasts (Monty & Skidmore, 2003), and hairdryer and mini-bar for hotels in Oslo (Thrane, 2007). ENTER 2014 Research Track Slide Number 8
  • Related Work • Pastor (1999) focused on the hotel sector, measuring the relationship between star categories and the services published on hotel guides, and their effect on price. • However as of yet, no study has analysed the relationship of online ratings and room price over time. ENTER 2014 Research Track Slide Number 9
  • Method • In previous work, a methodology to measure the hotel Average Daily Rate (ADR) was developed (Roman, Ibarguren, Gerrikagoitia, & TorresManzanera, 2013). • A information gathering system has been be developed to obtain review information along with, policies, services, star category, location and types of rooms • Several different hedonic price functions will be used ENTER 2014 Research Track Slide Number 10
  • Method • Every 24 hours, data on accommodation prices are collected automatically • The system asks for the price and availability of an overnight for the 1-28, 30, 45, 60 and 90 days -> Future price variation ENTER 2014 Research Track Slide Number 11
  • Method Data Volume Hotels Records Daily recs. Hist. Series Spain 11.569 140M 195K 5/2011 France 13.784 135M 300K 10/2011 Ireland 742 5M 18K 11/2012 Mediterranean Coastal Destination Sample Croacia 86 323K 2k Egypt 33 123K 1K Greece 431 138K 10K 1.105 2,5M 18K Morocco 217 812K 6k Portugal 163 141K 4k Tunisia 28 89k 1k Turkey 678 2,3M 16k Italy ENTER 2014 Research Track 6/2013 Slide Number 12
  • Method • Offered prices • Extracted from Internet Distribution System • Publicly available features of the hotel • • • • • Exact geographic location (coordinates) Services Policies Room features (bed type, AC, etc.) Customer rating • Historic booking data • From the hotel’s Property Management System • Event Databases ENTER 2014 Research Track Slide Number 13
  • Method Data Sets • • • • • • 1. Acommodation 2. Policy 3. Service 4. Product 5. Rating 6. Prices ENTER 2014 Research Track Slide Number 14
  • Method 2. Policy accommodation_id group hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 hotel_91748 Cancellation / Prepayment Check-out Pets Accepted credit cards Accepted credit cards Accepted credit cards Accepted credit cards Accepted credit cards Check-in Groups Groups Children and extra beds hotel_90599 hotel_90599 hotel_90599 hotel_90599 hotel_90599 hotel_90599 hotel_90599 hotel_90599 Cancellation / Prepayment Check-out Accepted credit cards Accepted credit cards Accepted credit cards Accepted credit cards Check-in Pets description Cancellation and prepayment policies vary according to room type. Until 12:00 hours Pets are not allowed. American Express Visa Euro/Mastercard Carte Bleue Diners Club From 15:00 hours When booking more than 5 rooms different policies and additional supplements may apply. Cancellation and prepayment policies vary according to room type. Until 12:00 hours American Express Visa Euro/Mastercard Diners Club From 14:00 hours Pets are not allowed. 15 ENTER 2014 Research Track Slide Number 15
  • Method 3. Service hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 hotel_90318 Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Services Internet Parking General General General General Meeting/banquet facilities Business centre Babysitting/child services Laundry Dry cleaning VIP room facilities Ironing service Shoeshine Car hire Tour desk Fax/photocopying Concierge service Special diet menus (on request) Trouser press Bicycle rental Ticket service Bikes available (free) Vending machine (drinks) Vending machine (snacks) Public parking is possible at a location near 24-hour front desk Newspapers Non-smoking rooms Facilities for disabled guests 16 ENTER 2014 Research Track Slide Number 16
  • Method 4. Product accommodation_id name adult_amount children_amount hotel_91748 Superior Double or Twin Room 2 N hotel_91748 Standard Double or Twin Room 2 N hotel_91748 Standard Triple Room 3 N hotel_91748 Junior Suite 2 N hotel_91748 Standard Single Room 1 N hotel_91748 Junior Suite with views 2 N hotel_90599 Guggenheim Museum Package - Double or Twin Ro 2 N hotel_90599 Double or Twin Room (1-2 Adults) 2 N hotel_90599 Single Room 1 N hotel_273500 Superior Double or Twin Room 2 N hotel_273500 Standard Double or Twin Room 2 N hotel_273500 Junior Suite (2 Adults + 2 Children) 2 2 hotel_273500 Double or Twin Room with Sofa Bed (3 Adults) 3 N hotel_273500 Family Room (2 Adults + 1 Child) 2 1 hotel_273500 Junior Suite (2 Adults + 1 Child) 2 1 hotel_273500 Junior Suite 2 N hotel_273500 Family Room (2 Adults + 2 Children) 2 2 hotel_273500 Double or Twin Room with Sofa Bed (2 Adults + 2 1 hotel_273500 Special Offer - Double or Twin Room 2 N hotel_92284 Twin Room (interior) 2 N hotel_92284 Twin Room Exterior 2 N hotel_92284 Guggenheim Offer 2 N 17 ENTER 2014 Research Track Slide Number 17
  • Method 5. Rating accommodation_i d booking_date name comfort value location clean services staff hotel_94558 04/06/13solo 6.6 7.2 6.5 7.7 6.6 8.0 hotel_94558 04/06/13youngCouples 6.6 7.6 7.3 7.4 6.8 8.0 hotel_94558 04/06/13average 6.6 7.5 7.0 7.5 6.6 8.0 hotel_94558 04/06/13friendGroups 6.1 7.7 6.7 7.3 6.8 8.3 hotel_94558 04/06/13familiesYoungChildren 6.7 6.3 7.5 7.2 5..6 7.5 hotel_94558 04/06/13familiesOlderChildren 6.1 7.7 6.7 7..3 6.8 8.3 hotel_94558 04/06/13matureCouples 6.7 7.5 6.7 7.6 6.7 8.0 18 ENTER 2014 Research Track Slide Number 18
  • Expected results • The study will be to validate the effects found in the literature within the scope proposed in this work • A data gathering process will be launched periodically and changes in online rating and hotel room prices will be analysed, looking for causal relationships ENTER 2014 Research Track Slide Number 19