Friday, 21 October 2011

Will reviewing bring about the end for big travel brands?

Photo by: Kevin Dooley
I thought this article from Nathan Labenz on GIGAOM was really interesting.

My interpretation is that with the adoption of online review sites, large brand empires can no longer rely soley on their name and reputation to garner business. In a situation such as a large hotel chain, frequently the locations vary in quality - and now consumers are privvy to this information via sites such as TripAdvisor.

Prior to the social reviewing revolution many travellers would book a hotel simply because the brand had a good reputation or they'd stayed in another hotel of the same brand and enjoyed it. However, as many travellers will be painfully aware - luxury hotel in 'city A' can often be VERY different to the same name luxury hotel in 'city B'. After so many years of riding on the coat tails of the umbrella brand - this reviewing revolution could force underperforming hotels to step up to the mark, OR, as the article suggests, high performing franchises may step out on their own - leaving the umbrella brand struggling.

My interpretation is that Nathan's suggesting that the dissonance created within certain brands by sites such as TripAdvisor could ultimately lead to their collapse, but as he finishes: "The loss of some familiar brands is a small price to pay for more informed purchasing decisions and fewer unpleasant surprises."

Definately a thought starter!

3 comments:

  1. Marketers have great opportunities when operating in the tourism industry through SM. They need to be able to take serious criticism but if they look past it and take the comments on board they can learn a lot and create a lot of value. People love talking about their holidays, they will criticise, but any savvy marketers will make the best of this, more than ever through SM!

    ReplyDelete
  2. Its great that we now have a clear line of site of what we as travelers are getting into when making our bookings. It will only expose the business's we hope to avoid!

    ReplyDelete
  3. Hi Kate, really enjoyed your post. I thought that the hospitality industry was subject to intense reviewing, didn't even think what the hotel industry might bear! Thought provoking indeed!

    ReplyDelete