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

NATIONAL ECONOMICS UNIVERSITY - - ONLINE TOURISM BUSINESS MANAGEMENT TOPIC: Analyze the impacts of online customer review and responses on tourism companies’ business Class: POHE Hospitality Management Group: Members: Nguyễn Thị Trinh Nguyễn Thành An Bùi Quốc Việt Lê Thu Phương Anh Nguyễn Thị Quỳnh Lưu Thị Minh Thư Hà Nội – 2023 Contents I ONLINE CUSTOMER REVIEW 1.1 Definition of online customer review 1.2 Roles of online customer review 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 2.3 Strategies for managing online customer reviews 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 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 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 Document continues below Discover more from: E-Tourism 27 documents Go to course BÀI TẬP KẾ TOÁN HCSN 107 - 2021- thầy phạm E-Tourism 94% (35) Bi Mat Dotcom - Cuốn sách kinh điển marketing 108 E-Tourism 100% (1) Ch3 Etour - e-tour 26 E-Tourism None TMĐT 2022 - Báo cáo Thương Mại Điện Tử 2022 32 E-Tourism None VR-tourism-Gr7 - fvsvsbfbf 21 E-Tourism None ANH-001 - Practice Test E-Tourism None 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 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 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 the company received hundreds of negative reviews, damaging their reputation However, the company took swift action by establishing a crisis management team and working closely with law enforcement to ensure the safety and security of their guests Additionally, they responded to each negative review with a detailed explanation and reassurance of the measures being taken to improve security This proactive approach helped the company rebuild its reputation and earn back customer trust  Victoria Mekong Cruises Victoria Mekong Cruises worked to gain customer reviews by offering options for personalized experiences on their cruises The company actively monitored its online reviews, responding to every positive and negative feedback to address the issues and offer potential solutions Effective response strategy and their willingness to improve helped Victoria Mekong Cruises to earn TripAdvisor's 2020 Travellers' Choice Award  Ha Giang Mountain Guide Ha Giang Mountain Guide specializes in trekking and touring in the Ha Giang region of North Vietnam They actively encourage their customers to leave reviews, and also provide timely and personalized responses both on official reviewing platforms and trip sharing on social media This approach has helped them collect helpful feedback to guide their service evolution as well as provide future customers the confidence to choose them 3.2.2 Case studies that showcase the negative impacts of online customer reviews and management responses  Queen Cafe Lounge, Ho Chi Minh City Queen Cafe Lounge, a popular music venue in Ho Chi Minh City, made headlines in 2020 when they responded to a negative review with attacks against the customer's weight and appearance The response went viral, resulting in tens of thousands of negative reviews and comments on their social media accounts The company ended up issuing an apology and hired a PR agency to help restore their reputation Unfortunately, this incident caused irreversible damage to the company's reputation, resulting in a significant loss of business and trust among customers  L'Azalee Cruises, Ha Long Bay In 2019, L'Azalee Cruises came under fire after a series of negative customer reviews on TripAdvisor accused the company of making false promises, misleading marketing, and poor service Instead of addressing the issues with sincerity, the company owner resorted to attacking the customers who left negative reviews This response resulted in hundreds of one-star reviews, causing significant reputational damage that was difficult to recover from  Khoi Hostel, Nha Trang In 2017, Khoi Hostel in Nha Trang received backlash after they posted a sign that prohibited Chinese tourists from staying at their hostel The company received thousands of negative reviews on Facebook and TripAdvisor, accusing them of discrimination and racism The company responded with a written statement apologizing for the sign and explaining that it was a misunderstanding on the part of the staff The company lost many Chinese customers and was forced to shut down the hostel a few months later IV THE FUTURE OF ONLINE CUSTOMER REVIEWS FOR TOURISM COMPANIES The future of online customer reviews for tourism companies is likely to become even more important than it already is today As technology advances, travelers' reliance on online reviews is likely to increase, and companies that not take online reviews seriously risk losing market share and customer trust Here are some potential changes and trends that could impact the future of online customer reviews for tourism companies: Greater Importance of Personalization: As the travel industry becomes more personalized and consumer-driven, customer reviews will increasingly play an important role Companies that can provide personalized travel experiences based on customer feedback are likely to achieve higher levels of customer satisfaction and positive reviews Increased Role of AI: As the volume of online reviews grows, companies are using AI to help them analyze these reviews to identify trends, issues, and patterns This can help them to better understand their customers' needs and preferences and improve their products and services AI-powered tools such as chatbots and natural language processing will play a more significant role in managing customer reviews Such tools will help tourism companies monitor and respond to reviews in real-time and analyze data to identify emerging trends and issues Growing Influence of social media: Social media platforms like Facebook and Instagram have introduced review features, making it easier for customers to leave reviews that can be easily shared with a wider audience Social media platforms will increasingly impact online customer reviews Companies will need to actively manage their social media presence and ensure they respond quickly and effectively to comments, reviews, and other feedback Micro-influencer marketing: Micro-influencers are individuals who have a smaller but highly engaged following on social media Tourism companies can partner with these influencers to promote their products and services, increase brand awareness, and generate positive reviews on social media platforms Increased Use of Visuals: Consumers are increasingly drawn to visuals, especially images and videos, when researching travel destinations and reviewing tourism products and services Tourism companies are using high-quality visuals to showcase their products and services, as well as user-generated content, to create a more authentic brand voice and improve the impact of customer reviews More Transparency and Trust: Customers will expect even more transparency and honesty from tourism companies, and companies that demonstrate authenticity and a genuine commitment to their customers' satisfaction are likely to achieve high levels of customer trust and positive reviews Collaboration with Review Providers: Tourism companies can collaborate with review providers like TripAdvisor, Google My Business, and Yelp to increase their visibility and access to customer reviews This helps them improve their online reputation and attract more potential customers Generally, tourism companies must embrace the future of online customer reviews by adopting a customer-centric approach and investing in enhancing the overall customer experience Companies must be willing to monitor and manage customer feedback thoroughly, integrate technology to simplify review management processes, and demonstrate authenticity and transparency to gain and maintain customer trust V CONCLUSION Online customer reviews and management responses have become an important aspect of the tourism industry Increasingly, consumers rely on online reviews to make better-informed travel decisions, and tourism companies can use reviews as valuable sources of customer feedback Trust and transparency are becoming critical factors in consumers' decision-making processes, and the quality of customer service and satisfaction can have a significant impact on travel businesses' reputations and revenue Many tourism companies recognize the importance of online customer reviews and are taking steps to manage reviews effectively These companies actively monitor their online presence, respond to reviews in a timely manner, take action where necessary to address customer concerns, and use reviews as an opportunity to engage with customers and build loyalty Management response can generate a positive impact, with an increased number of reviews and ratings leading to more bookings and a higher level of customer satisfaction However, negative reviews and inadequate management responses can damage the company's reputation and lead to lost revenue Moreover, some unscrupulous companies have been known to exploit fake reviews, leading to further damage to the tourism industry Similarly, some tourism companies may not be aware of the importance of review management, which can result in negative customer impressions and a lack of trust from potential customers In conclusion, online customer reviews and management responses are essential in the tourism industry, and companies must embrace this trend and work to manage feedback effectively Creating an outstanding customer experience through exceptional service, responsiveness, and follow-up can significantly enhance the review cycle, providing valuable customer insight to companies, leading to maintaining or improving their market position VI REFERENCES Journal of Travel & Tourism Marketing: https://www.tandfonline.com/loi/wttm20 Social Media in Tourism and Hospitality: A Literature Review: https://www.tandfonline.com/doi/abs/10.1080/10548408.2013.750919 Online communication and customer review: business.qld.gov.au Tourism Management: https://www.sciencedirect.com/journal/tourismmanagement