The efficiency of Tripadvisor for top hotels is uncontested. But what about the others, should they invest in more advertising and getting more reviews with Tripadvisor if they are below the top 50 for their city? This study gives some facts about the efficiency of Tripadvisor link and pay-per-click advertising for hotels at all levels.
We conducted this study after receiving an offer to promote hotels on Tripadvisor’s “Show Prices” button. To determine the validity of paying for clicks on this button we wanted to see the effect this could have on hotels that aren’t in the top 10 for their destination. After this conclusive study we have integrated the Tripadvisor PPC solutions to our advertising campaigns services for hotels. For more information on this click here.
Per Tripadvisor’s own statistics 72% of travelers begin their search for a hotel or for travel advice on Tripadvisor’s website. With over 40 million visitors per month it is the number one travel site in the world and probably the most popular hotel review site to date.
Method of tracking bookings
As not all hotels have purchased the Business Listing link we couldn’t simply track the bookings generated with Tripadvisor as a referral, besides that would not necessarily be correct way to track since a guest could have found the hotel using Tripadvisor and then gone off to compare rates and finally searched for the hotel on a search engine to book on the hotel’s website. We analyzed the bookings made and surveyed the guest to find out how they had found out about the hotel. Here are the results of the analysis.
Grouped by Ranking
Grouped by Average Price
Effect of ADR on Tripadvisor Bookings.
Grouped by Number of Reviews
Number of Reviews effect on Tripadvisor Bookings.
Conclusion: Is it worth advertising on Tripadvisor for hotels ranked below the top 10?
Hotels that are in the top 20% for their destination, obviously get a lot of bookings from this position. What is interesting however is that hotels below the top rankings get 9% of their bookings from Tripadvisor on the hotels surveyed. What this study reveals is that being 25% or within 50% from the top of the ranking the share of business from Tripadvisor is the same. If you’re thinking that 9% is not much consider the fact that Tripadvisor is within the top 3 most efficient platforms to generate bookings for hotels.
The quality of the hotel obviously plays a large role in the business received from tripadvisor as is evidenced by the second graph based on the ADR. Cutting prices doesn’t seem to be a large factor in customer satisfaction, at least not near as large as quality of the hotel and it’s service which. A guest is more likely to remember a great experience than a great price.
The number of reviews does not play a big part in the bookings generated as is evidenced by the last graph.
As mentioned above, based on this we decided to offer the “Show Prices” pay-per-click advertising model to our clients.
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