EVALUATING THE EFFECTIVENESS OF ONLINE REVIEWS IN SHANGRI-LA HOTEL

Abstract

In the digital era, online reviews have emerged as powerful tools that significantly influence consumer decision-making and shape brand reputation, particularly in the hospitality industry. With the increasing reliance on digital platforms for customer feedback, concerns regarding the authenticity, reliability, and overall impact of these reviews have become more pronounced. This study investigates the effectiveness of online reviews in building customer trust, enhancing brand loyalty, and contributing to business success, using Shangri-La Hotel as a case study. By examining the role of online feedback, the research aims to provide valuable insights into how digital reviews affect consumer behavior and inform strategic decision-making within hotel operations. This study employed a qualitative, descriptive research design to gain a deeper understanding of how customers perceive and interact with online reviews in the context of the hospitality industry. To evaluate customer trust, satisfaction, and loyalty in relation to guest feedback, data were collected from 30 carefully selected respondents through a validated survey instrument. Purposive sampling was utilized to ensure that participants had a direct, comprehensive experience with the services provided during their stay at Shangri-La Hotel. This targeted approach allowed the researchers to obtain meaningful insights from individuals most qualified to assess service quality and overall satisfaction, thereby ensuring the credibility and relevance of the study's findings. The study’s findings indicate a strong level of agreement among respondents regarding the significant impact of star ratings (composite mean: 3.55), customer satisfaction (3.73), and promotional offers (3.73) on their hotel booking decisions. The highest-rated indicators affirm that guests routinely consult star ratings and view overall satisfaction as a critical factor in hotel selection. Furthermore, the manner in which hotels respond to negative feedback emerged as a key determinant of guest perception. Participants highly valued responses that included sincere apologies (3.79), concrete solutions (3.79), and professional engagement (3.78). Hotels that acknowledged service shortcomings, communicated plans for improvement, and offered fair compensation were perceived more positively, ultimately reinforcing customer trust, enhancing guest experience, and fostering brand loyalty. The study underscores the significant influence of online reviews on consumer perception and overall hotel performance. Shangri-La Hotel’s proactive measures such as promptly addressing guest concerns, enhancing service delivery, and offering fair compensation, reflect a strong commitment to accountability, guest satisfaction, and continuous quality improvement. The findings recommend that consumers critically evaluate review content rather than relying solely on star ratings, and that hotel management ensure service delivery consistently reflects and supports the ratings presented online. For future research, the study suggests examining the role of service innovation and the extent to which customer perceptions shape the credibility of online reviews and contribute to long-term business success in the hospitality sector.