Significance of Star Ratings in Tourism and Hospitality Industry

This study analyzes the significance of star ratings in the tourism and hospitality industry. It evaluates the pros and cons of TripAdvisor star ratings and how they affect consumer booking decisions. The study also discusses the impact of social media on the traditional review platforms and the importance of monitoring reviews to gather responses from tourists.

Running head: TOURISM AND HOSPITALITY RESEARCH AND ANALYSIS
Tourism and Hospitality Research and Analysis
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TOURISM AND HOSPITALITY RESEARCH AND ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Background......................................................................................................................................3
Pros and Cons of TripAdvisor Star Ratings....................................................................................3
Evaluation........................................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Topic: Do you think star ratings affect consumer booking decisions or have they lost their
significance and why?
Introduction
Hotel Star rating is a quicker process of evaluating the quality and the specifications of
any hotel that the tourists would like to avail. It is true that the consumer decision depends on
their satisfaction level towards the products or services (Zhao et al., 2015). The positive
experience regarding the product or service use influences their decisions in a significant way.
However, it has been observed that despite their experience-based judgments, the customers tend
to make quicker decisions by judging the star ratings. In the tourism and hotel industry, this star
rating plays a crucial role in shaping the customers’ perceptions towards the hotel (Park &
Nicolau, 2015). For example, if a customer would like to avail the luxurious hotel experience,
they often opt for the five star rating hotels. Similarly, if they are looking for any overnight stay
or low rating hotels, they would shift their search towards the two-star rating hotels. However, in
today’s world, the significance of such star ratings is questioned due to the advancements in
internet. People receive the various search engines to identify the best options and make the
decisions thereafter.
The study would thus analyze the case study of Trip Advisor for understanding the
significance of star ratings in current tourism industry. The critical evaluation of the subject
would provide the clear understanding regarding the case scenario. Considering the identified
significance of star ratings, the study will develop the ideas about the current scenario in hotel
selection.

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Background
The current advancements in the technological field have transformed the business
functionalities (Radojevic, Stanisic, & Stanic, 2015). The internet driven world is changing the
customer needs in a recognizable way. People usually take the advanced method for booking
tickets or selecting the products though online sites. Hotel star rating is thus one of the most
convenient methods taking the quick decisions regarding the selection of hotel. Trip Advisor is
the largest travel site in the world that provides the detailed information about the trip to the
customers. The site contains almost 630 million opinions and reviews that influence the
decisions of the customers. It covers approximately 7.5 million accommodations, restaurants,
airlines, and experiences (Fagerstrøm, Ghinea & Sydnes, 2016). The larger amount of the star
ratings can mislead the tourists during their decision making process. People around the world
take the advice from this site prior to plan any trip. However, the current development of social
media is decreasing the value of the star rating process. The customers get the access to the user
review platform on social media (Radojevic, Stanisic & Stanic, 2015). The feedback shared on
the social media sites has the considerable impact on customers’ minds. Therefore, the traditional
review platforms are losing the significance these days.
Pros and Cons of TripAdvisor Star Ratings
Review of the star ratings is the traditional method that influences the hotel booking
decisions of the customers. In the year of 2015, Trip Advisor released a survey report, which
signified the importance of the reviews. The obtained idea from the survey report disclosed that
almost 96% of customers prefer to read reviews before planning for any trip or booking any hotel
(Koo, Caponecchia & Williamson, 2018). The survey also highlighted that almost 83% of the
users of Trip Advisor usually or always reference the reviews before making any decision. Xie et

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al. (2016) implied that the power of the internet and changes to the hotel industry have the clear
impact on the accommodating rating services. The industry looks for the well-respected and
administered rating system for attracting more numbers of the customers. The current tourism
industry is morphed into a recognizable social force in which the tourists’ decisions depend on
the collective experience shared in different social media platforms. TripAdvisor has been using
the user generated contents through the star rating review that helped the company in standing
out much promptly (Abrate & Viglia, 2016). However, it is noticeable that some of the reviews
are biased or misleading. In such cases, it becomes quite difficult for the tourists to make the
appropriate decision. TripAdvisor garnered more than 75 million reviews, which mixed up with
much biasness. Therefore, it was anticipated that the reviews on TripAdvisors are not
authenticated and reliable. In addition to this, it was in fact noticed that some of the reviews
presented by the tourists are incomprehensible, which affects the decision making process of the
tourists more complicated.
Evaluation
Decision of the tourists based on star ratings was the traditional way of selecting the best
trip or hotel experience. However, the evolution in social media transformed the selection of the
trips or hotels (Cezar & Ögüt, 2016). Analyzing the pros and cons of the star ratings on
TripAdvisor, it can be implied that the company is much suitable for the smaller operators. The
larger amount of the star ratings can mislead the tourists during their decision making process.
Moreover, the influence of the social media is also creating the considerable impacts on the
hotels. Hotel star rating is thus one of the most convenient methods taking the quick decisions
regarding the selection of hotel. The customers get the access to the user review platform on
social media. The hotels are also creating web pages to gather the review of the customers

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separately on social media. Hence, TripAdvisor needs to monitor the reviews to gather responses
from the tourists.
Conclusion
The study evaluates the idea of hotel star ratings utilized by TripAdvisor. The
transformation of the internet world has been influencing the tourists in making decisions about
their trips or hotels for accommodations. The use of the traditional star rating review method is
currently shifting from its focus. The biasness of the reviews is making the decisions more
complicated. Misleading reviews on TripAdvisor affects the business operations in a significant
way. Therefore, it can be suggested that TripAdvisor is much appropriate for the smaller
operations.

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References
Abrate, G., & Viglia, G. (2016). Strategic and tactical price decisions in hotel revenue
management. Tourism Management, 55, 123-132.
Cezar, A., & Ögüt, H. (2016). Analyzing conversion rates in online hotel booking: the role of
customer reviews, recommendations and rank order in search listings. International
Journal of Contemporary Hospitality Management, 28(2), 286-304.
Fagerstrøm, A., Ghinea, G., & Sydnes, L. (2016). Understanding the impact of online reviews on
customer choice: A probability discounting approach. Psychology & Marketing, 33(2),
125-134.
Koo, T. T., Caponecchia, C., & Williamson, A. (2018). How important is safety in making flight
choices? Evidence from simple choice experiments. Transportation, 45(1), 159-175.
Park, S., & Nicolau, J. L. (2015). Asymmetric effects of online consumer reviews. Annals of
Tourism Research, 50, 67-83.
Radojevic, T., Stanisic, N., & Stanic, N. (2015). Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management, 51, 13-21.
Xie, K. L., Zhang, Z., Zhang, Z., Singh, A., & Lee, S. K. (2016). Effects of managerial response
on consumer eWOM and hotel performance: Evidence from TripAdvisor. International
Journal of Contemporary Hospitality Management, 28(9), 2013-2034.

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Zhao, X., Wang, L., Guo, X., & Law, R. (2015). The influence of online reviews to online hotel
booking intentions. International Journal of Contemporary Hospitality
Management, 27(6), 1343-1364.