A new research report from Barclays takes a look at the ‘feedback economy’ and its impact on the hospitality industry. Customer-generated online reviews are increasing and opportunities for significant growth exist for responsive businesses.
The report, ‘The feedback economy: A £3.2bn opportunity for the hospitality and leisure sector’, analyses the respondent’s input by customer age and sector (hotels, restaurants, pubs and bars, etc.) to provide insights into consumers’ use of online reviews and how businesses use the resulting data to set pricing, run operations and develop strategy.
The report’s economic modelling suggests that the hospitality and leisure sector – if it becomes more responsive to online feedback – can reap benefits and potentially ‘boost the economy by £3.2bn by 2026′.
What does this responsiveness involve? The report explains how the online review process is managed by the respondents including, for example, the use of dedicated staff, Customer Relationship Management (CRM) systems and monitoring of online sites. Surprisingly, opportunities are particularly significant for small and independent businesses who appear to be more responsive to customers’ input. Case studies involving the five star Corinthia Hotel London, Villa Plus and Everyman Cinemas illustrate how to successfully manage feedback.
So what can hospitality businesses do to ensure they make the most of the feedback economy? Barclays’ report suggests taking a longer-term view of online reviews. The report’s infographic ‘Strategies for Success’ can help guide businesses in the steps a business can take to reap benefits from the feedback economy.
Barclays has made this report free to download. Find it HERE.