Online reviews’ influence on purchase decisions within the Hotel Industry

Abstract: Research Question: How do online reviews influence purchase decisions among potential consumers within the Hotel Industry?  Purpose: The purpose of this research is to gain a deeper understanding about the impacts in which online reviews has on consumer behavior and their decisions to actively select and purchase service from different hotels. The authors are striving to find answers to whether online reviews obtaining information about positive customer experiences within the hotel industry has a noticeable impact on the decisions made by customers.  Method: In this study, a deductive comparative research approach will be used  Conclusion: The results concluded that both luxury and budget hotel bookers seem to have more usage for traditional word of mouth than electronic word of mouth. However, electronic word of mouth is still seen as an important tool which is widely used by both groups. It was evident that luxury consumers find customer reviews more valuable aligned with having more experience with online reviews, which may have an impact on their decision making when booking hotels online. Further on, it was also observed that the brand image of budget hotels is impacted more by online reviews among both segments, than luxury hotels' brand image.