How much does a bad review cost?

Vacation rental owners are used to going the extra mile to provide a 5-star experience. However, 5-star accommodation means different things to different guests, and mistakes do happen! 

Maybe an appliance stopped working mid-stay, or perhaps the cleaning crew missed the mark. You would have been happy to fix the issue if the guests had reached out, but you weren’t aware of the problem until a bad review came in, and the unfortunate reality is that negative reviews lead to lost bookings.

One hotel study from 2009 showed that a single negative review could cost a hotel thirty lost bookings. Now that guests are booking online and considering reviews more than ever, imagine what that number looks like today. At a rate of $190/night for four nights, the cost of 30 stays could be up to $22,800 in lost revenue. 

On the flip side, another hospitality industry study by the Harvard Business School showed that a one-star increase in rating leads to a 5-9% increase in revenue. No matter which way you look at it, the reality is crystal clear – positive reviews are better for your bottom line. 

Bad reviews happen, but if you can build in an opportunity to address any issues at the beginning of the stay, you can turn a frustrating experience into a positive one through prompt, caring customer service. If you offer contactless check-in, it may be challenging to speak with guests directly to address any immediate issues. Consider sending a survey that prompts guests to rate the property upon check-in, like the GuestView Guide first impressions survey. Having a proactive communication strategy in place during the guest stay allows your guests to surface any issues by reaching you in real-time before a simple mistake turns into a negative review.