Can Response Management Benefit Hotels? Evidence from Hong Kong Hotels

With the growing influence of online reviews, more hotels are adopting online response management, but whether this works and benefits a hotel has rarely been studied. In this research, we study the impact of response management on hotel online ratings using data retrieved from TripAdvisor with a focus on Hong Kong hotels. We find that (1) high class hotels are more likely to adopt response management; (2) there is no significant difference among different hotel classes in terms of response rate; and (3) targeted response management has a significant positive effect on hotel ratings. In addition, Asian customers tend to give lower ratings than Western customers. We outline specific implications for hotel managers and their online management and offer suggestions for future research based on the empirical findings.