Guests value ratings over brand value, study finds

Guest ratings and price are more influential than brand reputation when travellers book hotels, according to a new report – ‘The Big Decision: How travellers choose where to stay’ from Expedia Group and Unabashed Research.

The study’s 903 participants were asked to select two destinations; a familiar domestic city and an aspirational international location that was unfamiliar. The result? The report stated that ‘Price was by far the most important factor when picking a hotel, across both well-known and unknown brands.’ And ‘Interestingly, hotel brand carried a marginal advantage over the other attributes.’

“Our results revealed that guest ratings have a strong influence on traveler selection. Travelers are willing to pay more for hotels with higher guest ratings, and considerably more so than for premium branding.” according to the white paper by Expedia Group’s Abhijit Pal, head of research, lodging partner services.

“This shows that guest ratings have essentially leveled the playing field for independent hotels, as more potential guests seek out third-party endorsements for hotel properties they are considering,”

“Today’s brands succeed by filling up their hotels with business and group travellers, and for many second-tier business destinations, it may feel impossible to be an independent hotelier. Online marketplaces can help convince leisure travellers, as well as road warriors and their employers, to choose independent properties.”

So one of the study’s main takeaways is it “shows that a non-branded independent has opportunity to compete against an established brand player for traveler preference by focusing on the guest experience.”