How do you calculate ROI?

Blend response metrics with observed revenue lifts and OTA benchmarks.

Can we export ROI reports?

Yes—export summaries for leadership presentations.

What if we lack historical data?

Use industry benchmarks, then refine as your data accrues.

What if our team is small?

AI drafts with approvals reduce time while keeping quality and compliance.

The ROI of Review Management

Quantify the lift from better, faster responses. Tie reply coverage and time-to-response to bookings and RevPAR with a simple model.

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Is your investment in reputation management paying off? For modern hoteliers, this isn't a "soft" marketing question—it's a direct inquiry into financial performance. Every review you receive is a data point that influences future bookings, pricing power, and, ultimately, your bottom line. Moving beyond simply managing reviews to actively measuring the return on your efforts is the key to unlocking significant revenue growth.

This page breaks down the proven financial impact of a structured review management strategy, providing a clear model to connect your team's actions to tangible results like increased bookings and higher RevPAR.

Why This Matters

Research Summary: The Financial Impact of Engagement

The connection between online reputation and hotel revenue is no longer anecdotal; it's a well-documented financial reality. Nearly 9 out of 10 consumers report that they read online reviews to evaluate local businesses. More importantly, potential guests don't just read reviews; they actively assess your responses to them. A remarkable 89% of consumers are 'highly' or 'fairly' likely to use a business that responds to all of its online reviews.

Academic and industry research provides compelling evidence:

Direct Impact on RevPAR: A landmark study from Cornell University found that a 1% improvement in a hotel's online reputation score can lead to a 1.42% increase in Revenue Per Available Room (RevPAR).
Increased Pricing Power: The same research shows that a single-point increase on a five-point review scale can allow a hotel to raise its room rates by as much as 11.2% without sacrificing occupancy.
Conversion and Trust: Effectively managing your reviews on critical platforms like Google and major OTAs is not just about customer service—it's a direct lever for influencing conversions and revenue.

Levers You Control

You can directly influence your hotel's financial performance by focusing on three core metrics of review management. Tracking each of these levers against revenue provides a clear picture of your ROI.

Reply Faster (Time-to-Response): In today's digital environment, guests expect promptness. Over half of consumers expect a response to a negative review within a week. By meeting and exceeding this expectation (industry best practice is under 24-48 hours), you demonstrate attentiveness and make a positive impression on prospective guests reading your replies.
Cover More Reviews (Response Rate): You don't have to reply to every single review to see a financial benefit. Research shows that businesses that reply to at least 25% of their reviews earn, on average, 35% more revenue than those that do not.
Keep Tone Consistent (Response Quality): The quality of your response is paramount. A thoughtful, empathetic, and professional reply to a negative review can dramatically shift perception, with 77% of TripAdvisor users stating it makes them more likely to book. A consistent brand voice builds a trustworthy and professional image that justifies premium rates.

Calculator & Assumptions: Modeling Your ROI

While every property is unique, you can build a powerful business case by modeling potential outcomes. An effective ROI model uses your hotel's specific data alongside established industry benchmarks.

How the model works:

Inputs: Start with your baseline metrics: Number of Rooms, Average Daily Rate (ADR), Average Occupancy Rate, and Current Average Review Score.
Assumptions (Based on Industry Research):
- A +0.1 star rating increase can lead to a measurable lift in conversion.
- A 1% improvement in your reputation score can increase RevPAR by ~1.4%.
- Improving your response rate to the optimal 25-40% range correlates with a significant revenue increase.
Projected Outcomes: Based on these inputs and assumptions, the model can quantify the impact of improving your review management. For example, it can project the annual revenue gain from increasing your average rating from 4.2 to 4.4 stars.

This model transforms reputation management from an expense into a strategic revenue-generating activity.

Use the ROI Calculator

Expected Outcomes

Faster Replies Lead to More Bookings: Prompt and professional engagement builds trust. With potential guests spending up to 49% more at businesses that reply to reviews, faster response times directly contribute to higher conversion rates and revenue.
Steady Tone Keeps Ratings Moving the Right Way: A consistent, high-quality response strategy improves guest perception and gradually lifts your average rating. Even a fractional increase in your star rating can boost revenue by 5-9%.
Clearer Reputation Brings More Direct Traffic: A strong, trustworthy online reputation built on active review management encourages guests to book directly with you. This reduces your reliance on costly OTA commissions and increases the profitability of every booking.