Guest reviews now outweigh brand recognition in hotel bookings. Expedia Group research reveals travelers will pay 35% more for higher-rated properties, reshaping how independent hotels compete.
The Big Decision: Guest Reviews Trump Brand Names in Hotel Selection
Writer: Expedia Group
Travelers weigh multiple factors when choosing where to stay. Not long ago, most people relied on advertising, word of mouth, guidebooks, or official star ratings — in other words, information filtered through the hotel brand itself. A strong brand image mattered enormously, because travelers would see a familiar name and phone the call center or book direct.
Then the internet arrived. Online travel markets became the norm, and suddenly travelers could access clear, comprehensive information 24/7, whenever they wanted it. For hoteliers, that shift means understanding how today's digital-native travelers choose hotels — and what factors actually drive booking decisions — has become essential.
That's why Expedia Group partnered with Unabashed Research to figure out what influences booking decisions. Their joint study¹ found that price and guest reviews matter more than brand when selecting a property. Today's independent hotels can compete with big-name brands more effectively than ever before.
As expected, price is the single biggest factor in hotel selection. Travelers prioritize value for money above all when budgeting for a trip. Promotions and discounts are powerful ways to signal value — they catch attention and drive bookings, plain and simple.
"Consumers want the best deal when booking travel, but their individual choices ultimately reveal what they value," says Abhijit Pal, Head of Research at Expedia Group. "Travelers on a tight budget seek maximum value within their limits. Those with more flexibility may pay a premium for luxury, but they still don't want to overpay."
Beyond price, guest reviews also wield major influence. According to this study, consumers are 72% more likely to prioritize guest ratings over brand. In fact, travelers will pay more for higher-rated properties — and that willingness to pay exceeds what they'd pay for a famous brand name. Study participants consistently showed they'd spend more on better-reviewed hotels: 24% more for a 3.9-star property versus a 3.4-star one, and 35% more for a 4.4-star property versus 3.9 stars.
"Peer reviews have fundamentally leveled the playing field for independent hotels," says Boon Sian Chai, Senior Director at Expedia Group. "More and more travelers value third-party validation when choosing accommodation. Today's independents can compete globally with branded chains, thanks to distribution, technology, and quality they can control."
The study found that hotel brand does offer some advantage — slightly more than factors like recent renovations, room photos, or star ratings. High-end branded hotels do command a premium in ADR, but that influence pales next to the power of excellent guest reviews.
A recent Cornell University study analyzing 95,000+ reviews of luxury independent properties concludes: "Service and rooms remain the core drivers of guest satisfaction. Hotels must focus on operational fundamentals that demonstrate both — consistently courteous service throughout the property, plus comfortable beds and environments that ensure quality sleep. Traditional hospitality elements like clean, well-functioning rooms where guests sleep soundly, paired with a good breakfast, are still the essentials of satisfaction."²
In the end, room photos, brand, star rating, guest reviews, renovation announcements, and price all factor into hotel selection. Renovation messaging, photos, and star ratings individually carry less weight, but combined with stronger factors, they can tip the decision.
Service, rooms, price, and guest reviews drive booking decisions the most. If your property has strengths in any of these areas, double down. Cultivate and refine what makes you exceptional.
Study Methodology
This choice-based conjoint study involved 903 general consumers³ who selected hotel properties in two preferred destinations. The research generated 12,642 randomized search results, representative room photos for each property, and pricing using the Van Westendorp Price Sensitivity Meter (PSM) for Expedia Group's most popular brands in each star-rating category. To identify relationships between individual factors and likelihood of hotel selection, a Bayesian inference hierarchical model was built using Markov Chain Monte Carlo methods.⁴
View the full report at http://bit.ly/expedia_report (English)
¹ The Big Decision: How Travelers Choose Where to Stay — study of 903 general consumers in the U.S., January–March 2019
² Jie Zhang and Rohit Verma, "What Matters Most to Your Guests: An Exploratory Study of Online Reviews," Cornell Hospitality Report Vol. 17 No. 4 (February 2017)
³ Demographics: U.S. respondents, Gender (Female: 54%, Male: 46%), Age (18–24: 10%, 25–34: 17%, 35–44: 17%, 45–54: 20%, 55–64: 17%, 65+: 19%)
⁴ 1,000 credible draws per respondent, per attribute, per feature level
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About Expedia Group
Expedia Group (NASDAQ: EXPE) is one of the world's largest travel platforms, breaking down barriers to make travel more accessible, affordable, and easier for people everywhere. Expedia Group's mission is to bring the world within reach for customers and partners. Using cutting-edge platforms and technology across a massive network of businesses and brands, Expedia Group enables free, seamless movement and travel domestically and around the globe.
Expedia Group's travel brands include Expedia®, Hotels.com®, Expedia® Partner Solutions, Egencia®, trivago®, HomeAway®, Orbitz®, Travelocity®, Wotif®, lastminute.com.au®, ebookers®, CheapTickets®, Hotwire®, Classic Vacations®, Expedia® Group Media Solutions, CarRentals.com™, Expedia Local Expert®, Expedia® CruiseShipCenters®, SilverRail Technologies, Inc., ALICE, and Traveldoo®. Learn more at www.expediagroup.co.kr.
