Customer reviews and feedback play a crucial role in the tourism industry, significantly influencing consumer decisions, satisfaction and business success.
This Digital Traces Economy highlights the importance of listening to and acting on comments received, both positive and negative, to improve services, increase customer trust and strengthen online reputation.
This enormous amount of content is beneficial for understanding market dynamics, tastes and perceptions of vast categories of tourists. It represents a hyper-representative sample of the perception of demand, i.e. of travellers, and a mapping of supply, i.e. of the positioning of the destination - or the individual company - in terms of perceived tourism product.
It is evident in 2024 that companies should actively encourage reviews and feedback (such as ratings, for example), monitor and respond on various online channels and use the information collected to drive innovation and continuous improvement.
In a highly competitive market like tourism, effective feedback management can make a difference in building lasting relationships with customers and ensuring the sustainable growth of the company.
Data and statistics at the end of 2023 - tourism sector
Source: Tripadvisor
- 99.9% of consumers consult reviews during the online selection and purchasing process.
- 53% of consumers want a response to a negative review within a week of posting.
- Companies that respond to at least 25% of their reviews earn 35% more than companies that don't respond.
- Google, Yelp, TripAdvisor and Facebook collectively dominate the online review landscape, accounting for 85% of all reviews.
- Ratings and reviews have surpassed price as the primary factor influencing purchasing decisions.
- Negative reviews can be costly, as a business could lose up to 30 customers based on just one negative review.
- 79% of consumers actively search for websites with product reviews.
- 65% of consumers will likely leave a review if the business asks.
- It may take up to 12 new positive reviews to make up for the impact of one negative review.
- 54.7% of consumers read at least four reviews before purchasing a product.
Online reviews have become influential factors in consumer decision-making since the early 2000s. Today, online reviews wield significant power, often making or breaking the success of businesses.
Their importance in 2024 cannot be understated, and here are some reasons:
Building trust: 72% of people say online reviews help them establish trust in a company.
Star Power: 92% of people are more likely to patronize a company with a four-star rating or higher.
The written word: 73% of customers attribute more value to written reviews than just ratings expressed with stars or a score.
Website Traffic: 54% of consumers visit a local business website after reading a positive review.
Medical Decisions: 77% of people use online reviews as their first step in finding a new doctor.
Healthcare ratings: 84% of patients regularly consult review sites for healthcare professional ratings.
Pay for quality: 86% of people are willing to pay more for the services of a top-tier company.
Revenue Increase:Â A one-star rating increase on Yelp can result in a 5% to 9% increase in restaurant revenue.
Impact on millennials:Â Research shows that 91% of 18-34-year-olds trust online reviews as much as their trusted friends' recommendations.
Source: Trust You 2023 research "The Impact of Reviews on Booking Behavior and Reputation"
- 87% of consumers read online reviews of local businesses. This is an increase of 6% compared to 2019 and 20% compared to 2010.
- 79% of online users say they trust online reviews as much as personal recommendations from friends or family.
- 94% of consumers say positive reviews make them more likely to use a company.
- Hotels that respond to guest reviews receive 12% more reviews, and their ratings increase by an average of 0.12 stars on a scale of 1 to 5.
- Ratings play a crucial role in travellers' decision-making process, and they often use them to filter their options when booking accommodations. On average, it is estimated that a one-star rating improvement can lead to a hotel's revenue increase by 5% to 9%.
- Millennials and Gen Z. Compared to Baby Boomers and Gen X, they read and write more reviews. Travellers between 18 and 39 are more likely to leave a review if their experience is positive. However, there are no significant generational differences in writing reviews after encountering a problem.
- 84% of younger travellers often read reviews before booking, compared to 67% of older travellers.
- 25% of Millennials and Gen Z believe a review is authentic if it is exclusively positive, compared to only 12% of Baby Boomers and Gen
Data and statistics - retail and industry globally
Reviews are essential not only in tourism but also in the way people look at a business and its products/services. They can support and enhance SEO activities and guide potential customers towards your business rather than your competitors.
Major review studies demonstrate the impact and value of reviews in people's decision-making and purchasing processes.
Here are some:
- Consumers read, on average, ten reviews before believing they can trust a company.
Source: Bright Local
- Products with five reviews are 270% more likely to be purchased than products without reviews.
- Businesses ranked 1 to 3 in Google's local search engine have an average of 47 reviews.
- 60% of consumers consult social media and blog reviews on their mobile devices before purchasing.
- 72% of customers will only buy something once they read some reviews.
- Only 6% of customers don't trust other buyers' reviews.
Source: Statista
- 73% of users believe written reviews are more important than star ratings and numbers.
- 70% of consumers trust online reviews and articles more than advertising when they want information about a company.
- Online reviews represent 10.3% of Google's page ranking algorithm.
- Two-thirds of Americans trust anonymous reviews more than a recommendation from their ex-girlfriend/boyfriend.
- 57% of online shoppers expect a business to have at least 11 consumer reviews.
- Nearly half (49%) of consumers believe the quantity of customer reviews is essential. In 2016, only 35% cared about the number of reviews.
- The influence of online reviews – 90% of consumers check people's reviews to decide whether to buy or not a product.
Source: Marketing Land
- 83% of shoppers don't trust advertising but do trust online customer reviews.
- According to online statistics, positive reviews encourage 68% of consumers to trust a local business.
- 72% of consumers read online reviews before engaging with a company.
- People don't trust a business right from the start. However, they trust their peers. That's why the opinions of other customers are vital to your potential customers.
- Online reviews are a touchpoint in the customer journey: 50% of millennials "always" read consumer reviews of companies.
Source: BrightLocal
- Almost all online shoppers who read online reviews do so early in purchasing.
- More than ten reviews are required for 90% of users to form an opinion on a company.
- 85% of consumers define online reviews over three months old as irrelevant.
- Online reviews are "critical" to 67% of consumers looking for a solution provider.
- Consumer reviews can map the customer journey better than anything else. They can even turn a potential customer away. However, they can also achieve the opposite effect: demonstrating that a specific business is trustworthy and attracting new customers.
Mobile users and online review statistics
Source: Statista
89% of customers read smartphone reviews.
- How online reviews impact trust and reputation management – 88% of executives believe reputational risk is the #1 business problem.
Source: Deloitte
- 78% of consumers trust online reviews as much as recommendations from friends and family.
- How many people trust online reviews? – 70% of users must read at least four reviews before trusting a company.
- According to online review statistics for 2019, 15% of users do not trust companies without reviews.
- People trust customer product reviews 12 times more than the manufacturer's description.
- 91% of companies say online business ratings are critical when hiring or losing a potential employee.
- Customer trust builds a company's reputation. For people to do business/book/convert, they need to know that a specific business is trustworthy.
- How online reviews affect user experience: 86% of customers stop doing business with a company due to a negative user experience.
Source: Oracle
- More than half of US shoppers (53%) consider online ratings and reviews the most influential factor in their online shopping experience in 2018.
- A disappointed customer will share their negative experience with 9-15 people.
- 64% of US consumers say online reviews and comments improve their shopping experience.
- 94% say that bad online reviews have convinced them not to buy from a company.
Source: ReviewTrackers
- Of customers who read reviews, 97% read responses to negative reviews.
- Research shows that negative reviews cost a company 10% more per hire.
- While some negative reviews are essential to a business as they give it a genuine feel, they can have devastating consequences for a company overall.
- A 1-star increase in Yelp rating can result in a 5% to 9% increase in revenue.
Source: Harvard Business School
- A single review can improve your conversion by 10%.
- One hundred reviews can increase your conversion by 37%.
- Customers will spend 31% more for companies with excellent reviews.
- 92% of B2B buyers will decide after reading a trusted review.
- Negative reviews and their effects on companies: 82% of consumers specifically look for negative reviews.
Source: Spiegel Research Center
- More than half (57%) of customers would not consider using a company with a consumer rating of less than 4 out of 5 stars.
- Just one negative review about a company by a consumer is enough for 35% of people to decide not to buy from that company.
- According to online review statistics, it takes around 40 positive reviews to undo the damage of just one negative review.
- More than four negative reviews can reduce a company's sales by 70%.
- Negative reviews influence the purchasing decisions of 86% of consumers.
- Why is it essential to answer Customer reviews? 89% of consumers read companies' responses.
Source: BrightLocal
- Companies that respond to online reviews increase trust in their brands by 30% of their customers.
- 53% of customers believe a company should respond to a negative review within a week.
- Businesses that respond to their customers see a 12% growth in the number of reviews for their business. Not only that, but their stars in Google reviews increase by 0.12.
- When businesses send their customers a direct link to submit a review, their ratings on Google improve.
- The direct link between online reviews and conversion rates: a single review can increase conversions by 10%.
Source: RevLocal
- Online review statistics show that product reviews increase the conversion rate by 270%.
- Combining positive and negative reviews can increase conversion rates by 85%.
- People are four times more likely to purchase a product with at least five reviews.
- Consumers spend four times more time on a site and convert better when they read negative reviews.
- Higher-priced items convert 380% better when they have reviews. Cheaper product reviews lead to a 190% increase in conversion rates.
- The impact of online reviews on sales – online reviews influence 67.7% of the purchasing decision.
Source: Moz
- 81% of people are willing to wait longer (shipping times) for a product with reviews.
- The exact figure is 81% would pay more for a product with reviews.
- Best sellers have an average rating of 4.2-4.7 stars. Consumers consider five stars "too good to be true".
- Reviews written by verified buyers increase customers' likelihood of purchasing by 15%.
- Online shoppers expect an average of 112 product reviews when they search for it online.
- Online reviews increase company profits – Online shoppers are willing to spend 31% more for a company with great reviews.
Source: Martech Zone
- 82% of customers visit consumer review sites because they already have a purchasing decision in mind.
- According to online statistics, customer reviews influence 98% of software buyers.
- A one-star increase in your Yelp rating results in a 5% to 9% increase in restaurant revenue.
- Product and business reviews shared on Twitter increased sales by 6.46%.
- People are usually ready to buy/book when they start reading reviews. The question is whether these reviews will push them to purchase from a company or one of its competitors.
- Online review statistics for local businesses: 97% of people read reviews for local businesses.
Source: BrightLocal
- Consumer reviews are the third most significant element in Google's local pack algorithm.
- 54% of US shoppers pay more attention to a local business' star rating.
- The average rating of 61% of local businesses is between 4 and 5 stars.
- The average local business has 39 reviews on Google.
- Local businesses that appear in the top three positions on the first page of Google have an average of 47 reviews.
- 60% of customers read reviews on Google for a local business.
- According to online review statistics, 74% of local businesses have at least one review on Google.
- Your average local business has at least 39 reviews on Google My Business.
- Review signals account for 15% of Google's local search ranking factors.
- 74% of local businesses have at least one review on Google, with restaurants and hotels having the most customer reviews.
- The average marketer at a local business spends 17% of their time managing online reputation.
- 76% of local marketers plan to spend more time improving their online reputation in the next 12 months.
- The effects of online reviews on different sectors: 92% of B2Bs are more likely to purchase after reading a reliable review.
Source: G2 Learning Hub
- 57% of millennials read reviews of bars and restaurants. 40% read reviews of clothing and grocery stores.
- 60% of online shoppers typically write at least one consumer review on Amazon.
- Positive reviews are the third most important factor (57%) for Amazon customers who purchased in 2019. Price and low shipping costs are the only factors that matter more than reviews.
- Home electronics reviews were the most crucial element for 88% of US shoppers purchasing.
- 46% of customers post reviews of electronic products.
- Oddly enough, 41.6% of people would not choose an insurance company with positive reviews.
- 36.6% of consumers would trust a local auto repair centre with positive reviews.
- How do I get consumer reviews? – 77% of users would write a review if asked.
Source: Podium
- Male and female shoppers are equally likely to write a review.
- What percentage of customers leave reviews? – Over 50% of consumers aged between 25 and 34 have written a review about a company or product.
- Today, the average consumer review is 65% shorter than in 2010.
- 86% of people would consider reviewing a product or company.
- Statistics on the most popular business review sites: Google reviews account for 57.5% of all reviews globally.
Source: ReviewTrackers
- 95% of travellers visit company rating sites to read reviews before booking.
- 71% of millennials look for at least one consumer review about a company when choosing a professional service.
- Nearly all Yelp visitors (98%) have purchased from a business listed on the site.
- Facebook reviews account for 50% of customer purchasing decisions.
- How to check the reputation of a company?
- 63.6% of users check Google reviews.
- 45.18% of consumers visit Yelp.
- 30.03% read reviews on TripAdvisor.
- 23.14% of customers visit Facebook to read reviews about a company.
- 57% of consumers will only use a company with a rating of 4 stars.
Source: Bright Local
- 82% of shoppers will not use a business with a consumer rating of less than three stars. (bright room)
- A business with a 5-star rating will receive 39% more clicks from Google Local results than a business with a 1-star rating.
- A business that goes from a 3-star rating to a 5-star rating will receive 25% more clicks from Google Local.
- Improving your business's user ratings by 1.5 can result in over 13,000 leads.
- Hotels that responded to reviews on TripAdvisor achieved 12% more reviews, an improvement over the 0.12-star rating.
- 63.6% of consumers visit Google to check business reviews.
Source: ReviewTrackers
- Google accounts for 64% of all global reviews, followed by Facebook at 19% and TripAdvisor at 8.4%.
- Facebook reviews influence more than 50% of consumer purchasing decisions.
- It was observed that reviews on Twitter/X increased e-commerce sales by 6.46%.
Business responsiveness matters
Online reviews don't simply reflect the experiences of others; they also shed light on how companies handle feedback. As many as 97% of buyers who read online reviews also consider the companies' responses.
Responding to reviews, especially negative ones, is a testament to good customer service and can significantly benefit a business. 56% of consumers have changed their perspective on a company based on the company's responses to reviews.
Influence on job seekers
Online reviews have expanded their reach beyond influencing sales and leads, and job seekers increasingly rely on reviews when researching potential employers.
86% of employees and job seekers now research reviews and ratings to determine whether they should apply to a particular company. When managing a local business's online reputation, things can get tricky. But in 2024, one thing is obvious: reviews are critical for a company to succeed from an employment perspective.
The fake reviews
Economic impact:Â Last year, fake reviews influenced an estimated $152 billion in global spending on substandard products and services.
The scale of the problem: Although not precisely documented, millions of fake reviews flood review platforms, with thousands generated almost every day.
Variety of Fakes:Â Fake reviews include fake five-star ratings and scripted stories aimed at deceiving customers.
Pandemic Acceleration: The pandemic has accelerated online shopping, amplifying the importance of online reviews and, therefore, the potential impact of fake reviews
To understand the scope of fake reviews, it is crucial to explore their different forms.
Paid review farms:Â Companies pay for fake reviews, with prices ranging from $5 for Google to $50 for Yelp.
Business owners: Some businesses generate fake reviews directly or indirectly, creating a false perception.
Forced Employees:Â Current employees may be compelled to write positive reviews for their employer.
Former employees:Â Former employees may write negative reviews in retaliation.
Economic purposes:Â Customers may exaggerate negative experiences to obtain refunds or discounts.
Review Bombing:Â Groups of people (or fewer people using many accounts) write coordinated commissioned reviews, usually negative.
Fake reviews have yet to affect the credibility of online sites and people, as demonstrated by the many statistics cited above.
Businesses can also proactively encourage customers to leave authentic reviews:
Personal requests:Â Interact with customers in person and ask for their feedback.
Email outreach:Â Send requests for reviews, especially at the end of a project, manually or automatically (recommended).
Text messages or Whatsapp:Â If the company already communicates with customers via text messages, this can extend their relationship.
Email Signatures:Â Incorporate a link to review sites into staff members' email signatures.
Online directories:Â Register your business on online directories, such as Clutch, that make it easy to collect reviews.
Fake reviews have been a significant problem for many years and have, over time, threatened to undermine the credibility of online review platforms.
Fake review statistics
Source: Tripadvisor – https://www.tripadvisor.com/TransparencyReport2023
1.3 million reviews were identified as fake and removed, 72% of which were spotted before posting.
Reasons behind fake reviews on TripAdvisor
A fake review is submitted by someone biased in some way and who has yet to have personal experience with the reviewed company.
This includes, but is not limited to:
Review promotion:Â When someone connected to the business, such as an owner, employee, or family member, posts a positive review.
Vandalism:Â When someone connected to a competing company posts a deliberately harmful review about a company to lower its ranking or discredit it unfairly.
Paid Reviews:Â When a business uses the services of an individual or company to improve its ranking on Tripadvisor with positive reviews.
Member Fraud:Â When a user knowingly and maliciously submits a review violating the guidelines, potentially intending to influence a property's ranking, but does so independently and uninfluenced by a property listed on Tripadvisor.
