Hotel Reviews & Reputation Impact Calculator
Based on Actual Studies and Data
Step 1: Enter Your Hotel Information
Enter your hotel's basic details. This information is required to estimate your current revenue.
Step 2 (Optional): Reviews & Reputation
Tip: This section is optional. Enter these values if you have data about your reviews and reputation for a more accurate projection.
Current Impact & Risks
💰Estimated Annual Revenue
$0
↓Potential Annual Loss (1-star drop)
$0
💰 Harvard Business School (Luca, 2016): 1-star drop = 5-9% revenue loss.↓Lost Revenue from Negative Reviews
$0
🔻 Moz Study: Negative reviews have a larger impact when reviews are few.Calculation = (Drop per Review) × (New Bookings Influenced) × ADR × 365
Opportunities for Growth
↑Potential Annual Gain (Rating Improvement)
$0
📈 Cornell Study: Higher ratings = 11% more per night.↑Revenue Gained from Positive Reviews
$0
🔺 Phocuswright: Positive reviews boost conversion rates.↑Additional Revenue from Higher Reputation
$0
📈 Cornell Study: A stellar reputation helps raise ADR.
Sources:
💰 Harvard Business School (Luca, 2016): 1-star drop = 5-9% revenue loss.
📈 Cornell Study: Higher ratings enable charging 11% more per night and increasing ADR.
🔻 Moz Study: Negative reviews have a larger impact when review counts are low.
🔺 Phocuswright: Positive reviews boost conversion rates exponentially.
💰 Harvard Business School (Luca, 2016): 1-star drop = 5-9% revenue loss.
📈 Cornell Study: Higher ratings enable charging 11% more per night and increasing ADR.
🔻 Moz Study: Negative reviews have a larger impact when review counts are low.
🔺 Phocuswright: Positive reviews boost conversion rates exponentially.
Explain Math Behind Studies
Estimated Annual Revenue: Calculated using:
Estimated Annual Revenue = Average Nightly Rate × Number of Rooms × (Occupancy Rate / 100) × 365
This provides an annual revenue estimate based on your current operational metrics.
Potential Annual Loss: Assuming a 1-star drop results in a 7% revenue loss:
Potential Annual Loss = Estimated Annual Revenue × 0.07
This estimates the loss in revenue if your hotel's rating drops by one star.
Potential Annual Gain: Conversely, an improved rating can yield an 11% gain:
Potential Annual Gain = Estimated Annual Revenue × 0.11
This reflects the opportunity to increase revenue with better ratings.
Impact from Reviews:
- Lost Revenue from Negative Reviews: Calculated as: (Booking Drop per Negative Review ÷ 100) × (Number of New Bookings Influenced by Negative Reviews) × Average Nightly Rate × 365.
- Revenue Gained from Positive Reviews: Estimate the extra positive reviews you expect if your reputation improves. Multiply the estimated extra reviews by the conversion increase percentage (as a decimal) and then by the Estimated Annual Revenue.
- ADR Increase from Higher Reputation: Represents additional revenue when your hotel raises its Average Daily Rate due to an improved reputation.
All calculations are based on a rating scale of 1 to 5. If you use a 1–10 scale (e.g., on Booking.com), simply divide your rating by 2 before entering it here.
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