Role Of User Generated Content In Hotels And Its Impact On Hotel Ratings

INTRODUCTION - Role Of User Generated Content In Hotels And Its Impact On Hotel Ratings

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2.0 Literature review

2.1 Overview of the study

At present, due to the fact that many technologies are much more advanced, it is used a lot in all fields. One such practical application is to visit a hotel and create a blog or review-based content. This study will provide detailed information on how the ratings of such approach hotels have made an impact.

2.2 Positive impacts of user generated content in hotel

Helps to gather more real-life information on hotel

One of the purposes of user generated content is to present actual hotel information to other customers, and if this helps a lot in the field of hotel advertising (Jang and Moutinho, 2019). Knowing all the details about the hotel helps a lot in attracting a large number of customers, and as a result, the company's popularity is likely to grow significantly.

Helps to increase brand value of hotel

The content that is developed depending on the hotel is of great help in understanding the culture and environment of the hotel, and in this case getting a lot more positive reviews helps a lot in increasing the brand value of the hotel (Oliveira and Casais, 2018). Understanding the environment of a hotel helps a lot in enhancing the reputation of the hotel.

Positive impacts on profit margin

If the user generated content is positive then it helps a lot in increasing the profit margin of the company (Kitsios et al., 2022). In many cases, when the hotel environment is good, the content creators monitor all aspects of the hotel in detail, and they are presented in very detailed content. Therefore, it can be said that user generated content in many cases raises the rating of the hotel a lot and thereby increases the attraction of the customer, and this helps a lot in increasing the company's profit margin.

Reduce costs

With the current market becoming more competitive, the trend of advertisement in the hospitality industry is increasing, and to manage marketing costs, the company has to increase service costs, which is not a good thing for customers. However, at present, due to the rating system, the company does not have to do much marketing approach, and as a result, the cost of the company is much lower. The service charge is going to be reduced a lot as there is not much cost in the case of advertisement, and because of this, customers are getting satisfied and this is having a much more positive effect on hotel ratings.

2.3 Negative impacts of user generated content on hotel ranking

Affect on hotel’s brand value

Often a lot of negative content about the company is generated through user generated content, and this has a negative effect on the ranking of the hotel and has a negative effect on the brand value of the company (Ukpabi and Karjaluoto, 2018). As all of this content is available on the Direct Online website, it hurts the customer's confidence, causing much damage to the hotel.

Impact of lie comments

In many cases, many customers intentionally post negative comments about a hotel on an online website, and as a result the rating of the hotel goes very negative and there is no customer attraction towards that hotel (Ana, 2019). The online platform is so flexible and universal that any customer can comment as they wish, but this has a huge impact on the company's reputation. This is why online content creation is a big risk factor for the hotel industry.

As a result, user-generated content is now more likely to have a positive as well as a negative impact on many of the hotel industry. This is one of the most controversial topics in the hotel industry, and with this, multiple hotel companies are trying to tackle the whole issue more than once.

2.4 Customer feedback maturity theory

Figure 1: Customer feedback maturity theory

(Source: Mendes-Filho ey al., 2018)

Initial

In this case, the user generated content is controlled by relying on certain information and advertisements provided by the company (Mendes-Filho ey al., 2018). Hotel companies currently do a lot of advertising in the province, and an initial feedback is given to see how customers react to this advertisement. This is a very important issue in the case of initial content creation.

Developing

In this case, the system collects company or hotel experience from itself in order to provide feedback. In this case, customers or content creators try to interact directly with the company, and in this case the experience from the company is what is created as content on the online platform (Jang and Moutinho, 2019). Content is being touted on a large number of online platforms.

Organized

At this stage, it is only by analyzing the experience of the company that an attempt is made to present it on the online platform. This approach also informs other customers about the company by trying to present the actual details of the company. In this case, if there is any bad experience towards the company, the customer is also made aware of it.

2.5 Conceptual framework

Figure 2: Conceptual framework

(Source: Self-developed)

From this conceptual framework it is known that user generated content depends on a number of factors, such as price, brand image, and quality of service. A good understanding of all these factors implies a kind of initial concept in each hotel customer, and in this case a positive or negative perception of the customer towards the company is born.

In addition to this, the user attaches great importance to the practical experience of the customer in the field of generated content. Depending on all of these approaches, appropriate content is developed for the hotel.

2.6 Literature gap

The biggest gap in this study is the lack of online content and hotel ranking-related articles. Moreover, the best problem is that it is not possible to carry out this study in critical analysis. In addition to all these problems, there have been many problems in collecting relevant data related to this topic.

Reference list

Ana, M. I. (2019). The role of social media and User-Generated-Content in millennials’ travel behavior.

Jang, S., and Moutinho, L. (2019). Do price promotions drive consumer spending on luxury hotel services? The moderating roles of room price and user-generated content. International Journal of Hospitality Management, 78, 27-35.

Kitsios, F., Mitsopoulou, E., Moustaka, E., and Kamariotou, M. (2022). User-Generated Content behavior and digital tourism services: A SEM-neural network model for information trust in social networking sites. International Journal of Information Management Data Insights, 2(1), 100056.

Mendes-Filho, L., Mills, A. M., Tan, F. B., and Milne, S. (2018). Empowering the traveler: an examination of the impact of user-generated content on travel planning. Journal of Travel and Tourism Marketing, 35(4), 425-436.

Oliveira, B., and Casais, B. (2018). The importance of user-generated photos in restaurant selection. Journal of Hospitality and Tourism Technology.

Ukpabi, D. C., and Karjaluoto, H. (2018). What drives travelers' adoption of user-generated content? A literature review. Tourism management perspectives, 28, 251-273.