74% of hotel guests state that Wi-Fi has a great impact on a hotel’s star rating.

There are over 20,000 small and medium independent hotels in the USA, so a 26% increase in demand for hotel rooms can have a positive economic impact nationwide, according to a recent Boston University study. And, there are over 600,000 restaurants who can benefit from a 1-star rating increase on Yelp, and a subsequent bump in sales by up to 5% – according to a Harvard Study.

A recent study by Boston University and Microsoft disclosed some important findings, and the value of online reviews.

As reported in Wall Street Journal on Saturday, November 19, “researchers used 10 years of financial data for hotels in five states, along with historical records of online reviews from three popular ratings platforms.” They reviewed 3.7 million online reviews from TripAdvisor and Expedia.


The finding concluded that:

  • “better reviews are correlated with higher demand and, in turn, higher prices”
  • “1-point increase in a hotel’s rating is associated with a 6.5% increase in demand and a 1.5% increase in price”
  • “1-star increase is associated with a 26% increase in demand”
  • “ratings are more influential for independent hotels because consumers do not have strong priors on their quality.”

Restaurants benefit from a 1-star rating increase with a 5% increase in sales. “Harvard Business School. Dr. Luca has studied the effects of Yelp reviews on restaurants and found an impact, particularly for independent restaurants, whose sales rose by 5% when average ratings increased by one star.”

Further research from TripAdvisor, Hotels.com and hotelwi show that:

  • Poor Wi-Fi leads to negative online reviews & loss of repeat business
  • 71% of hotel guests say having Wi-Fi in their room influences where they stay
  • 50% percent of respondents said free Wi-Fi is a must- have when traveling for business
  • 94% of guests cite Wi-Fi as the most important amenity (38% of these see Wi-Fi as a deal breaker and will book elsewhere)

Make Wi-Fi work for you without the headache and the hassle. KodaCloud’s Managed Services Partners can help boost hotel and restaurant star ratings.

  • No need to buy Wi-Fi equipment (for partners or the customer)
  • Free cloud-based software updates and hardware refresh
  • 24/7 proactive network management system which actively troubleshoots and solves Wi-Fi network issues with patented machine learning and AI

With KodaCloud, there is no upfront cost for equipment, software licensing or network management fees. There’s just one simple monthly payment that provides a reliable Wi-Fi network as a service.

Boost sales with reliable Wi-Fi.  You’ll be thankful (later).

Happy Thanksgiving!

Ronny Haraldsvik
SVP/CMO, KodaCloud

http://betanews.com/2014/07/07/poor-wi- -risks-losing-hotels-repeat-business/

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