Topic analyze the impacts of online customer review and responses on tourismcompanies’ business

--- ---ONLINE TOURISM BUSINESS MANAGEMENT TOPIC: Analyze the impacts of online customer review and responses on tourism companies’ business.. Case studies that showcase the positiv

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 -ONLINE TOURISM BUSINESS MANAGEMENT

TOPIC: Analyze the impacts of online customer review and responses on tourism

companies’ business.

Class: POHE Hospitality Management Group: 4

Members: 1 Nguyễn Thị Trinh

2 Nguyễn Thành An

3 Bùi Quốc Việt

4 Lê Thu Phương Anh

5 Nguyễn Thị Quỳnh

6 Lưu Thị Minh Thư

Hà N i – 2023 ộ

I ONLINE CUSTOMER REVIEW

1.1 Definition of online customer review 3 1.2 Roles of online customer review 3 1.3 The impacts of online customer review on tourism companies' business 4 1.3.1 The positive impacts of online customer reviews on the tourism business 1.3.2 The negative impacts of online customer reviews on the tourism business

II MANAGEMENT RESPONSES TO ONLINE CUSTOMER REVIEW OF ONLINE BUSINESSES

2.1 Definition of management responses 5 2.2 The importance of management responses 5 2.3 Strategies for managing online customer reviews 6 2.3.1 General strategy for managing online customer review

2.3.2 Strategy for responding to negative reviews

III CASE STUDIES ABOUT RESPONSES OF TOURISM BUSINESSES TO ONLINE CUSTOMER REVIEW

3.1 Examples of tourism companies that effectively manage online customer reviews 8 3.2 Case studies that showcase the positive and negative impacts of online customer reviews and management responses on tourism companies 9 3.2.1 Case studies that showcase the positive impacts of online customer reviews and management responses

3.2.2 Case studies that showcase the negative impacts of online customer reviews and management responses

IV THE FUTURE OF ONLINE CUSTOMER REVIEWS FOR TOURISM COMPANIES

V CONCLUSION

VI REFERENCES

I ONLINE CUSTOMER REVIEW

1.1 Definition of online customer review

Customer reviews are a form of digital feedback customers share online about your products and services Customer review websites provide customers with the opportunity to review businesses independently Review websites enable customers to formally and informally discuss and rate your business online

Customers are often given general guidelines for reviews and asked to allocate a rating for the product or service Review websites then use an algorithm (mathematical formula) to filter out any reviews that they suspect are false or automatically generated before posting the remaining reviews Positive online reviews increase the likelihood of customers using your business Negative online reviews give your business an

opportunity to respond well publicly and to improve your services in response

Reviews enable direct insight into customers’ opinions, values and disappointments and can guide necessary adjustments to your business practices

1.2 Roles of online customer review

Online customer reviews play an essential role in the tourism industry Here are some of the roles that online customer reviews can play, along with corresponding examples:

Informing Purchasing Decisions: Online customer reviews can provide potential

customers with an insight into a tourism product or service before making a purchasing decision For example, a traveler may read reviews of hotels before booking a stay based

on the feedback other customers have given about the location, amenities, and level of service

Building Trust: Online customer reviews can help build trust between a tourism

company and potential customers For example, a travel agency may feature customer reviews on its website as social proof, providing customers with reassurance that the company is reliable and trustworthy

Identifying Improvement Opportunities: Online customer reviews can highlight areas

where a tourism company can improve its product or service For instance, an attraction may receive feedback about the wait times for a particular ride, allowing them to make changes to address this issue

Driving Engagement: Online customer reviews can drive engagement with a tourism brand For example, a restaurant may encourage customers to leave reviews by offering a

discount on their next visit, which can in turn boost their reputation and sales

Enhancing SEO: Online customer reviews can boost search engine optimization (SEO)

as a large number of positive reviews can lead to an increase in the overall page ranking

of a tourism business For instance, a hotel may receive higher search engine rankings and, therefore, may be more visible for potential customers based on the number, frequency, and quality of online customer reviews

1.3 The impacts of online customer review on tourism companies' business

1.3.1 The positive impacts of online customer reviews on the tourism business

Online reviews and testimonials are all about building trust And that’s especially true for e-commerce sales when shoppers can’t ask store associates for product

information before buying

There is a range of benefits to business that result from customer reviews, and these include: enhance the company's reputation by creating a positive perception of the company in the minds of potential customers; increased bookings and revenue as customers are more likely to choose companies that have positive reviews from other customers; increase the trust and confidence that customers have in the company's services, which can lead to repeat business and referrals; act as free marketing for the company, as satisfied customers become brand ambassadors and promote the company to others; give the company a competitive edge over its rivals by creating a positive perception of the company and its services, distinct from its competitors; offer insights into areas that need improvement, helping the company to implement strategies to enhance customer experiences and satisfaction; foster engagement and loyalty between the company and its customers, as customers feel valued and appreciated by the

company's response to their feedback

1.3.2 The negative impacts of online customer reviews on the tourism business

Negative feedback may cause suspicion, and there is a growing inclination among customers to doubt the honesty of such enterprises – whether they are local or small The overall sentiment toward a well-established firm may vary considerably

Customers may become irritated by negative product or company reviews that are not attended to Therefore, they may not only refrain from buying products from the company

in the future, but they may also share their negative experience with friends and family, potentially damaging the company's reputation

Negative reviews can lead to lost sales as potential customers might be discouraged from buying a tourism product or service For example, if a potential customer reads several negative reviews about a hotel's cleanliness or customer service, then they might choose to book with a competitor instead

Negative reviews can significantly harm the reputation of a tourism company, and it could hurt the business in the long term For instance, a travel agency that organizes adventure tours could receive negative reviews from customers who claim that they didn't deliver on their promises, which damages the brand image and could lead to fewer bookings

II MANAGEMENT RESPONSES TO ONLINE CUSTOMER REVIEW OF ONLINE BUSINESSES

2.1 Definition of management responses

Management responses refer to the actions taken by managers or leaders of an organization in response to various internal and external factors These factors may include changes in the market, shifts in consumer preferences, economic conditions, technological advancements, legal and regulatory changes, or any other issue that may affect the organization's ability to achieve its objectives

Management responses can take various forms, such as strategic planning, policy development, resource allocation, risk management, process improvement, performance evaluation, and communication with stakeholders The ultimate goal of management responses is to ensure that the organization is able to adapt and respond to changing circumstances effectively and efficiently while continuing to achieve its objectives and maintain its competitive advantage

2.2 The importance of management responses

Management responses to online customer reviews are critical for the success of any tourism company Here are some reasons why management responses are essential: Builds customer trust: Effective management responses to customer reviews build customer trust When a customer posts a review, they appreciate hearing back from the company, especially if they have had a negative experience If management responds promptly and with empathy, it can help to regain trust and confidence in the company

Improves reputation: Management responses are essential for improving the reputation

of a tourism company If the company responds effectively and addresses customer concerns, the response can be a valuable tool for potential consumers to assess the level

of customer service the company provides This can lead to more positive reviews and higher ratings, which ultimately improve the company's reputation

Provides valuable feedback: Management responses also provide valuable feedback to

companies Feedback can be an excellent tool to identify areas for improvement, customer needs and expectations, and industry trends Management responses can be

used to develop and adjust strategies, products and services and to ensure that future customers have an improved experience

Opportunity to resolve issues: Management responses present a unique opportunity for

companies to resolve customer issues If the company responds quickly and positively to negative reviews, it can help to address the situation and alleviate the customer's frustration In doing so, it can prevent a minor complaint from escalating into a

substantial issue that could lead to lost customers

Demonstrates commitment: Management responses demonstrate a company's

commitment to customer satisfaction When customers see that companies are taking the time to respond to their reviews, it sends the message that the company values their opinion and places a high priority on customer satisfaction This can lead to increased customer loyalty and retention

In conclusion, management responses to online customer reviews are essential for the success of any tourism company A high volume of positive reviews can help to build a strong reputation and attract new customers, while negative reviews can offer valuable feedback to improve company operations, identify areas for improvement and increase customer satisfaction levels Effective management responses can not only resolve customer issues but can also demonstrate that the company values customer feedback and places a high priority on customer satisfaction

2.3 Strategies for managing online customer reviews

2.3.1 General strategy for managing online customer review

Managing online customer reviews requires a dedicated approach, and companies must ensure that they provide prompt, customized responses that acknowledge the customer's experience and aim to remediate any issues By utilizing customer feedback for

improvement and tweaking processes, companies can enhance their level of customer service and provide a better experience for all customers Therefore, Managing online customer reviews is crucial to the success of any tourism company Here are some strategies that can be used to effectively manage them:

Monitor online channel: The first step in managing online customer reviews is to

monitor all the online channels regularly, such as social media, review websites like TripAdvisor, Google My Business, and booking websites This can help identify when a customer has posted a review or has raised any issues Ensuring that there is a dedicated team or tool to manage these channels is essential to timely and effective management

Respond promptly to review: It is essential to respond to reviews, both positive and

negative promptly When a customer posts a review, they expect a response within a reasonable timeframe Failing to respond or delayed responses can create negative

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impressions of the company A prompt response demonstrates that the company values and appreciates customer feedback

Customize the response: Companies should ensure that they customize their response

to each review A generic response might be viewed as insincere or lacking empathy Therefore, it's important to read the review thoroughly and tailor the response specifically

to the customer's comment Also, addressing the customer by name and including details

of the problem or issue helps to show sincerity and engagement

Acknowledge the customer's experience: Management responses should acknowledge the customer's experience to show empathy and understanding This demonstrates that the company cares about the customer's experience and will work to ensure that they have a positive one in the future

Remediate Problems: Management responses should aim to remedy the customer's problem Where possible, actions should be taken to remedy any issues the customer has raised This action should be followed by an apology and a reassurance that the company will do better in the future

Use reviews to improve services: Customer reviews can be a valuable tool to identify areas for improvement across products and services Analyzing and identifying common themes or issues can help improve operations and the overall customer experience

2.3.2 Strategy for responding to negative reviews

Best practices for responding to negative reviews include:

Responding promptly: Responding to negative reviews promptly shows that you care about your customer's experience and can mitigate the impact of the negative review on your business Example: "Thank you for your feedback We're sorry to hear about your negative experience with our product/services We would like to address your concerns and try to make things right."

Apologizing and showing empathy: An apology shows you take responsibility for the customer's negative experience, and empathy shows that you understand and care about their feelings Example: "We sincerely apologize for the negative experience you had with our service We can understand your frustration, and we're here to find a solution that works for you."

Offering a solution: Offering a solution or a way to rectify the issue shows that you are willing to take responsibility and make things right Example: "We would like the opportunity to make things right Can you please provide us with additional details so we can better understand what happened and work towards finding a solution that works for you?"

Taking the issue offline: Providing a phone number or email for the customer to reach out to you offline can help to resolve the issue privately and mitigate any negative impact

on your business Example: "We would appreciate the opportunity to speak with you about your experience Can you please provide a phone number or email address where

we can reach you?"

Staying professional: It's essential to remain professional, courteous, and objective when responding to negative reviews Avoid becoming defensive or using negative language Example: "We appreciate your feedback, and we would like to assure you that we take our customer's concerns seriously Providing exceptional customer service is our top priority, and we would like to do everything we can to rectify the situation."

Here's an example that embodies all of these best response practices:

"Dear Sarah, we're sorry to hear that you had a negative experience with our service We understand how frustrating this can be and would like to take the opportunity to resolve the issue We appreciate your feedback and would like to gather more information to help

us address the problem Could you please provide us with additional details, and we would be happy to reach out to you offline to discuss this further We take our customer's satisfaction seriously, and we strive to provide exceptional service Thank you for sharing your feedback with us."

III CASE STUDIES ABOUT RESPONSES OF TOURISM BUSINESSES TO ONLINE CUSTOMER REVIEW

3.1 Examples of tourism companies that effectively manage online customer reviews

Currently, there are many tourism companies that effectively manage online customer reviews Here are a few more examples:

Airbnb: Airbnb has a strong presence on review forums like TripAdvisor and Yelp, as well as on its own platform Airbnb encourages hosts and guests to leave feedback after each stay Both parties have the opportunity to review each other, which helps to promote transparency and trust on the platform The reviews are publicly available and help to highlight the strengths and weaknesses of each listing, allowing other customers to make well-informed decisions

Booking.com: Booking.com sends automated emails to customers after their stay, asking for reviews They also have a feature that allows customers to search for reviews

by traveler type (such as solo travelers, families with young children, or couples) TripAdvisor: TripAdvisor is one of the most popular review platforms for the tourism industry They use algorithms that take into account the quality and quantity of reviews,

as well as the reviewer's history, to establish a company’s ratings

Expedia: Expedia sends follow-up emails to customers after their trip, asking them to leave a review They also use incentives, such as a discount on a future booking or entry into a prize draw, to encourage customers to leave reviews

Hilton Worldwide: Hilton Worldwide monitors all social media sites and review platforms to stay up to date with customer feedback They respond to both positive and negative reviews in a timely and personalized manner, demonstrating that they value customer feedback and are working to improve their services

Marriott International: Marriott International has a dedicated social media command center that monitors social media for mentions of its brand and responds to customer reviews and feedback The company actively engages with customers, addressing any concerns, and thanking customers for positive feedback As a result, Marriott

International has one of the best reputations in the hotel industry

Yelp: Yelp is a review website that helps customers find and review local businesses Yelp has developed an algorithm to filter reviews and ensure that only high-quality reviews from real customers are posted This helps to prevent fake reviews and maintain customer trust

Delta Airlines: Delta Airlines maintains a dedicated social media team that actively monitors and responds to customer feedback on social media platforms such as Twitter, Facebook, and Instagram The team responds promptly to customer concerns and complaints and offers solutions to any issues As a result, Delta has one of the highest satisfaction ratings in the airline industry

Viator: Viator is a tourism company that offers tours and activities for travelers around the world They have a robust review system that allows customers to give detailed feedback on their experiences Viator actively monitors and responds to both positive and negative reviews, offering solutions and remedies to any problems that may have arisen This helps Viator to maintain its reputation as a reliable and trustworthy tourism company

…

3.2 Case studies that showcase the positive and negative impacts of online customer reviews and management responses on tourism companies

3.2.1 Case studies that showcase the positive impacts of online customer reviews and management responses

 Vietnam Backpacker’s Hostels

In 2013, Vietnam Backpacker’s Hostels faced a crisis when a video emerged of a tourist being robbed at knifepoint outside one of their hostels The video went viral and