Hotel Classification System and Online Review

This report discusses the hotel classification system and the impact of online reviews on hotels. It explores how customer review sites can protect against fake hotel customer reviews and the importance of online hotel reviews for an organization. It also highlights the negative impact of online reviews on business operations.

Hotel classification
system and online review

Table of Contents
INTRODUCTION...........................................................................................................................3
Title and abstract....................................................................................................................3
How customer review sites can protect against fake hotel customer reviews........................4
Rationale of the study.............................................................................................................5
Literature review .............................................................................................................................5
Online reviews are beneficial for hotels.................................................................................5
Why online hotel reviews are important for an organisation.................................................6
Negative impact of online review on company's business operations and functions.............7
The Impact of Online Reviews on Customers’ Buying Decisions.........................................9
Identify the impact of online ratings on brand perception and awareness...........................10
Critical review and analysis..................................................................................................11
Conclusion.....................................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Hotel classification system is defined as the recurrence of criteria in 4 star or 5 star
Hotels. This identifies a common criteria among these hotels that provides valuable insights for
destinations that has a purpose for revising existing or establishing new hotel classification
system. The benchmarking international accommodation standards are helpful for destinations to
establish hotel classification system that is more relevant and useful for consumers (Hollenbeck,
Moorthy, and Proserpio, 2019.). In the following report, there is a discussion that is based on
critical review of customer of Marriott. This report will provide information of rationale of this
topic, literature review, critical analysis of the most important issue faced from food provided to
customers in JW Marriott International. This is an American organisation that provides services
across the world. This is a diversified hospitality company that manages and franchises broad
portfolio of hotel and lodging services.
Title and abstract
The title for this report is classification of hotels and this classification system is widely
used in the accommodation sector for the means of providing an indicator to both customers and
intermediaries on the standard to be found at individual establishments. Hotel classification can
give marketing platform for individual hotels and for the destinations that are going to promote
quality of their services and offerings. The presence of multiple systems worldwide is a
challenge. The classification system can be divided into factors that evaluate objective criteria
and that evaluates both subjective and objective criteria (Baker, 2016). This title is used for
managing the feedback given by customers. The rating of hotel describes quality of service that
is offered by the company (Warner, and Hewett, 2017). The title of the report includes – how an
online review of customer can be true or false. This is so because it is one of the major factor
which impact on the restaurant reputations because visitor check rating before coming to the
restaurant or hotel or visitors also decide their hotel according to the rating. But it is true that
rating of the restaurant which is showed on any application or website is calculated on the
aggregate basis that sometime affect reputation of hotel. Along with this companies or restaurant
sometime also paid for positive review which will also consider as misleading practices. So in
respective report analysis will be done that online reviews of customers are effective or
ineffective.

How customer review sites can protect against fake hotel customer reviews
Customer review is considered as a review which is provided by a customer on a
particular products and services, that he/ she purchased, experienced as well as used. This is also
consider as customers feedback that can be provided on electronic commerce as well as online
shopping sites. Moreover, customer review of a customers plays an essential role in impacting
others decision. Such as if a person see positive review and five stars rating of a hotel, then they
definitely visit that place whereas if a hotel having minimum stars but have quality food and
service, customer avoid to visit or they ask others before visit that hotel. This shows how a rating
as well as review of others highly impact on a person's decision. According to a research, it is
concluded that around 20% of online hotel customer reviews can be fake and unreliable (Dens,
De Pelsmacker, and Purnawirawan, 2015). It is so because there are many companies who paid
peoples for posting good comments or reviews on firm's website and various application at
which firm is registered. Respective types of practices are generally done in hotel and restaurant
industry because in this sectors people consider rating before visiting place. In addition to this
rating of restaurant can be analyse through its star rating one star shows hotel services and
products are not good as well as customer is not happy. Two star mean offering are not good but
it is good from bad. Three star relate with moderate review i.e. service is much good but it is not
that much of bad. Whereas four star show services and products are effective and five star mean
offering are excellent as well as customers is happy with it. This research created a source of
anxiety for different hoteliers because online reviews are very important as different luxury
customers rely on these feedbacks. There are 93% of travellers according to which online
reviews impact the decision making of the customers. According to another study, it is concluded

that a one point increase in the average hotel rating on a 5 point scale helps in making potential
customers upto 13.5%. Most of the mahor review sites have software in place to protect against
fake reviews (Hewitt and Stubbs, 2017). This can be explained with an example – a research
suggested that there are around 16% of Yelp reviews which are identified by the site's software
as fake and subsequently filtered by the Yelp'd detection algorithm.
Rationale of the study
It is important for the hotels to sustain a profitable revenue stream there are various
factors that must be maintained (Hochrein, Muther, and Glock, 2017). The review websites have
a significant impact on how travellers choose their accommodation. It is important to remember
that just because you are a three-star hotel, it doesn’t mean your reviews will be rated lower than
those of a five-star hotel. People balance their reviews with their expectations so ratings often
even themselves out across all hotels (Ali, Kwak and Kim, 2016). But these rating impact
strongly on the company brand image and visitor decision making process. Such as, everyone
know that Marriott is a big hotel brand which provide several quality services as well as they
also arrange several programmes according to requirement. Along with this respective hotel is
operating at international level as well as it is a third largest hotel around the world. But
consumer- affairs rated Marriott Hotel with one and half star out of five which mean service is
not good due to which fell unsatisfied. This rating is calculated on the basis of aggregate of 95
customers or visitors reviews (Marriott Hotels, 2019). From 95 some peoples gives five star but
lots of them give lowest star (one or two) due to which agree come as least rating. This shows
how a review of customer mislead decision making process of others because by analysing the
review customers will think that receptive hotel is not much effective as well as they also not
provide effective services to visitors. So respective study is based on the evaluation of How
customer review sites can protect against fake hotel customer reviews.
Literature review
Online reviews are beneficial for hotels
According to the viewpoint of Dens, De Pelsmacker, and Purnawirawan, (2015) , online
review of a hotel is beneficial for business. Customer reviews are available at different places of
web such as website, social media and online travel agenda. These are one of the most viewed
content regarding property and thus it is necessary for business organisations or big hotels to pay

attention to them. Online reviews of a product or service affects behaviour of customers a lot.
The importance of review and how customers rely on them varies on the behaviour how they are
sold. It is important for hotel organisations to pay great attention on feedbacks and read reviews
for understanding the needs and demands of Luxury customers (Aureli and et. al., 2013). This
can be explained with an example, if an individual posts positive online review then it attracts a
lot of customers to use services and products offered by the company. Along with there are
several other benefits which are gain by a firm through customers reviews on different online
application such as website, Customers affair, Facebook and many more. Such as through this
firm able to conduct free advertisement on another website, enhance trust and loyalty of
customers, improve search engine and customers credibility and so on. In addition to this, it will
also minimise the complaints as well as return situation because customers can determine all
negative aspects of products and services before purchasing it. This will also help in highlighting
areas of improvement in products as well as services of firm. These are some of the main
benefits which are gain by an organisation business through positive customers reviews.
Why online hotel reviews are important for an organisation
According to the views of Dong, Li and Zhang, 2014, it is concluded that within the
hospitality industry, hotel's online reputation management plays an important role. The views
and reviews of travellers on different websites like booking.com, Tripadvisor, Makemytrip, etc.
is important for hotels as this influences other individuals who are visiting that place. The online
reputation of hotel plays a key role in decision making when other factors like room quality,
price and amenities are equal. Hotel custom,er review is in hands of hotel industry and they
must make sure that all customers are giving positive feedback on internet. This directly affects
the reputation of the company. According to a research, 93% of the customers make bookings for

hotel after reading reviews of hotel given by other people who have already visited that hotel. It
is analysed that hoteliers globally believe that reviews are very important and there are around
70% of individuals who are looking for hotel bookings read minimum of 7-10 reviews before
selecting hotels. Reviews have massive impact on the individual who is booking the hotel. Also,
reviews play an important role in generation of revenue for the organisation. Customers who had
bad experience with hotel are more likely to write reviews than the customers who enjoyed the
stay (Duan and et. al., 2016). Reviews are both positive as well as negative and they must be
responded by the organisation in an effective manner to build a good customer relation. There is
no each and every individual who is giving feedback. Success of a hotel is judged by the front
desk staff who gets opportunity for greeting staff. Online reviews have significant impact on the
bookings of people's decision making. A hotel business cannot escape from the power of reviews
that impacts consumer decision making.
As per the perspective of Pranjal Prashar, 2019, who is the Founder and CEO of RepUp.
Co, online review plays an essential role in maximising as well as reducing customers. It is so
because reviews of other impact of consumers mind. Moreover, according to author's thinking
one the feedbacks respond of other plays an essential role because it attract peoples who visited
to website for checking review (The Impact of Online Reviews on the Hospitality Industry
[Infographic], 2019). Along with this it will also lead to avoiding negative point because people
think it may happen sometime. Photos or article on online sites also help in attracting customers
as well as it will also inspire others for travelling and staying at particular hotel.
Negative impact of online review on company's business operations and functions
As per the view point of Julie Rains, 2019, when a person conduct online purchasing of
any things like products, services, accommodation, table or room booking, flight booking and so

on, they must analyse the company rating. Because through it customers able to take proper
decision but sometime it will lead to wrong decision. Along with this there are several negative
impact of online review on company business operations and function such as negative comment
or review of products and services will skew potential customer's view point. Along with this,
mostly third parties at which customers post out the company will charge money for using
services. In respect of Hotel and restaurant there are several websites and applications such as
hotel website, Trivago, Zomato, booking.com and many more. There are several other negative
impact of customers review like unsupportive review may damage prestige, trustworthiness and
profitability of business unit (Pros and Cons of Online Customer Product Reviews, 2019).
Moreover, it is also analyse that one negative feedback will drive away nearly 22 percent of
customers as well as three negative review will drive approximately 59 percent of customers. In
addition to this unsupportive review of customer also affect business of firm because people
hesitate in purchasing thinks from that company which have no review or too may negative
comments.
Furthermore, in respect of article given on Outbound Engine, 2019, there are some online
reviews ways which impact on the status of business such as 68 percent consumers trust on the
opinions that are posted online. It will also encourage them to visit place for attaining particular
place services. Another related fact is that 85 percent customers trust online reviews so much
because they think it is personal recommendations like their own friend or family give it (5 ways
online reviews are affecting your business [Stats], 2019). Customers who faced bad experiences
are more likely to share it which impact on the good comments because it is human behaviour
that they focus more to negative points. This will directly or indirectly lead to hamper of
business name. Along with this, company has to conduct various activities in order to turn
negative comments into positive one.

The Impact of Online Reviews on Customers’ Buying Decisions
As per the view point of Stacey Rudolph, 2015, online review of users highly impact on
the potential customer's decision making process. So it is essential for company's management to
evaluate customers review so that they can evaluate customers demand, attitude and usage
related to products and services they are offering. According to the data collected by respective
author 90 percent of customers consider online review before they visit to store or hotel as well
as 88 percent of consumers trust on online reviews or rating provided by others as they consider
it as a personal recommendation (Ghorpade and Ragha, 2012). In addition to this according to
gathered data 31 percent customers are more likely to spend on that business which have
excellent review or five rating because they predict that respective hotel services as well as
products are best. Moreover in respect of 72 percent customers positive or supportive reviews
help them in trusting on local business more. It is also seen that 92 percent users use those local
business that have 4 or plus star rating whereas 72 % take action or take services when they read
positive reviews (The Impact of Online Reviews on Customers’ Buying Decisions [Infographic],
2019). Furthermore, if a company have negative online review then approx 86 percent people
will hesitate in taking services and products of that company. There are near by 26,380 reviews
are posted on Yelp (customers review application) in every minute.

Identify the impact of online ratings on brand perception and awareness
According to the perspective of Matt Bowman, 2019, a company's brand perception and
awareness get impacted by online ratings which are done by customers or users after using
particular products or services or visiting to place (Gräbner and et. al., 2012). By providing
online review a person able to convince or influence other's potential customers decision
regarding particular services, products or place. Moreover it will also help a company in
understand perspective of user on their products and services, through which they can develop
effective as well as appropriate decision. Along with this if a company have positive customers
reviews then the society perceive positively whereas if they have lots of negative comments then
it will impact negatively on the brand perception (Online Reviews And Their Impact On The
Bottom Line, 2019). Customers review on the different online application like website, Trivago,
Zomato, booking.com and many more, help in enhancing brand awareness that directly lead to
enhancement in company market value. This will generally happen when application contain
positive review about the company because negative review directly lead to decline in company
business and profitability ratio at potential marketplace. So it is essential for company as well as
restaurant to maintain their online review because it highly impact on the their business

operations and functions as it will lead to attracting more and more customers, generating high
profit and shares and so on.
Critical review and analysis
As per the view point of Mal McCallion, 2015, online review sites are considered as
those sited at which customers or users post their experiences about the products and services,
place, game and so on (Kwok, Xie and Richards, 2017). There are so many sites at which
customers provide feedbacks, suggestion and reviews such as facebook, Google, Yelp,
TripAdvisor, Mantra, Yellowpage and many others. In respect of restaurant and hotel there are
several other customers review sites such as Yelp, Zomato, OpenTable, Zagat, Gayot, Dine and
so on. Along with this, when a company adopt online review sites they go through several
advantages and disadvantages which directly impact on their business operations and functions
(Pro’s and Con’s of online review sites, 2019). Some of the main positive factors which are gain
by a company by adopting online review sites are through good online reviews firm able to bring
new customers by analysing customers reviews on products and services. This will also lead to
trustworthiness as well as transparency among the company and their customers that attract new
customers and retain old one effectively. This will also enhance company's reach among the
potential marketplace or customers which lead to enhancement in profitability, market shares and

market value. Through this an organisation management also able to know customers need,
demand and expectations through their reviews as well as comments.
On the other hand, online customer review also impact on the company negatively
because if their will be negative comment then mostly visitors get convinced that the products,
service and place is bad (Lee, Hu and Lu, 2018). Along with this, it can be false because there
are several companies or restaurants which paid their customers to write good on their website
and other applications like facebook, Google, Yelp, TripAdvisor, Zomato, OpenTable and many
more. This practices will mislead the decision of customers because they think that particular
company is effective but they experience services and products they feel cheated. So it can be
determine that customer reviews on online application as well as websites will impact strongly
on customers decision negatively as well as positively both (Martin-Fuentes, 2016). Along with
this is also necessary for a company of all industry especially hotel and restaurant to conduct
their business operations effectively as it will lead to avoiding negative customers review on
online applications.

Conclusion
By above discussed point it can be determined and summarised that customers review
plays an effective role in decision making process of a customers as well as it will also help a
company in enhancing their business positive review. But there are some situation arise at which
customers review consider as negative factors because because it review or rating which show at
website or application are based on aggregate. Due to which if a company have more negative
review and less positive review then aggregate will be negative every if a company offer quality
offering. This will negatively impact on the particular company business and profit margin. In
addition to this there are also several misleading activities are conducted by a company in order
to increase their positive rating such as they paid to visitors who give five star or good reviews as
well as company also provide some discount coupons to them. In respect of hotel and restaurant
industry customers reviews consider as essential factor because it will help in convincing
customers to visit to their hotel. Along with this through customers reviews other peoples get to
know about restaurant and hotel's food, drink, accommodation and many mores.

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