What Is Online Reputation? Hotel Reviews Explained

Online reputation is how a hotel is rated in guest reviews. How it affects rates and what the law says.

By Michael Külbel 3 min read

Graphic: Cornell study: one more review point allows 11.2 per cent higher rates; each 1 per cent better reputation means up to 0.89 per cent higher rates and 1.42 per cent RevPAR
Findings from the study by Chris Anderson, Cornell University, 2012. Graphic: eingecheckt.de · Background photo: Basile Morin, Wikimedia Commons, CC BY-SA 4.0
Key points
  • Online reputation is a hotel’s standing on the internet, above all in guest reviews on Google, Booking.com, Tripadvisor and other platforms.
  • According to a Cornell University study, a hotel whose review score rose by one point on a five-point scale could raise its rate by 11.2 per cent without losing occupancy.
  • In Germany, businesses that display reviews on their own website must state under Section 5b of the Unfair Competition Act whether and how they check that the reviews come from genuine guests.
  • Responding to reviews in a factual and personal way is part of managing online reputation.

Before booking, guests read what others have experienced. An average score of 8.9 or 7.4 can decide whether a hotel makes the shortlist. Online reputation therefore affects both rates and occupancy.

What online reputation means

Online reputation covers everything guests write publicly about a hotel: stars and reviews on Google, scores on Booking.com, reviews on Tripadvisor and comments on social media. Many hotels use software to combine these into an overall index so they can track it over time.

How reviews affect rates

In 2012, Chris Anderson of Cornell University studied how reviews affect hotel performance. Based on booking data from the travel site Travelocity, a hotel whose rating rose by one point on a five-point scale, for example from 3.3 to 4.3, could raise its rate by 11.2 per cent while maintaining occupancy and market share.¹

A second analysis using reputation data from ReviewPro and market data from STR found that a 1 per cent increase in reputation score was associated with up to 0.89 per cent higher average daily rate, up to 0.54 per cent higher occupancy and up to 1.42 per cent higher RevPAR. The study also shows that a growing share of travellers read reviews before booking.¹

What the law says in Germany

Under Section 5b(3) of Germany’s Unfair Competition Act (UWG), anyone who makes consumer reviews available, for example on their own website, must state whether and how they ensure that the published reviews come from consumers who have actually used or purchased the service.² This entry is not legal advice.

How hotels manage their reputation

The most effective reputation management is a good stay. Beyond that, it helps to ask guests politely for a review after departure, to respond to reviews and to analyse recurring criticism internally. Responses are read not only by the reviewers but also by future guests. A factual, personal reply shows them how a property deals with criticism.

What hoteliers should look for

Checklist: managing online reputation
  1. Keep an overview: Read reviews on Google, Booking.com and Tripadvisor regularly.
  2. Respond: Reply promptly, personally and factually, including to praise.
  3. Spot patterns: Collect recurring criticism and discuss it with the team.
  4. Ask for reviews: Politely ask satisfied guests for a review after departure, without offering anything in return.
  5. Be transparent: For reviews on the hotel’s own website, state whether and how they are verified.

More in the magazine

Why hotels often look very different on booking platforms than expected is explained by Sahin Toprak in our article "What Does Your Hotel Really Look Like to Guests?". How to create hotel photos that live up to their promise is described in "Hotel photographer Tom River on pictures that live up to their promise".

Sources

This glossary entry is based on the following sources:

  1. Chris Anderson (Cornell University) (2012)
    The Impact of Social Media on Lodging Performance
    Report, Center for Hospitality Research, November 2012. Effect of reviews on rates, occupancy and RevPAR, data from Travelocity, ReviewPro and STR.
  2. Federal Ministry of Justice (2026)
    § 5b Gesetz gegen den unlauteren Wettbewerb (UWG): Wesentliche Informationen
    Statutory text, gesetze-im-internet.de. Paragraph 3: duty to inform whether and how published consumer reviews are verified. Original publication in German.
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