Online response management : exploring how hotels in cape town’s Central Business District (CBD) manage online reviews

Abstract

The tourism sector and hospitality industry were among the first industries to employ information and communication technology almost solely for business purposes. An online response management (ORM) system is a customer service system that is supported by information technology. This study focused on guests’ online reviews (OLR) and how hotels respond and use online response management systems to manage these reviews. A significant gap exists regarding the management of online reviews at accommodation establishments in Cape Town. In order for hotels to remain relevant within the dynamic tourism industry, studies have been conducted focusing on the impacts of technological developments, such as social media and online reviews on hotels. Existing research focuses primarily on the positive and negative impacts of online reviews from the consumers’ perspectives, however limited attention has been given to shed light on how hotels manage their online reputation. The aim of the study was to understand how hotels manage their online reputation when responding to online platforms visitor reviews. This study employed a qualitative methodology and exploratory research design that utilised purposive sampling, whereby seven accommodation establishments ranging between 3-star and 5-star rating categories, located within Cape Town’s CBD, were selected to participate in the study. Following the steps in the scientific qualitative data analysis of the research, statistical data was arranged categorically based on the perspectives of the participants. Data were collected via face-to-face and online interviews. The study presents the following assumptions drawn from existing research: (1) hotel management employs processes and systems to respond to online reviews, (2) hotels are equipped to respond to online reviews during a pandemic, and (3) hotel management perceives negative and positive reviews to be impactful. The results of the analysis reveal that hotels are aware of online response management systems and how negative and positive reviews impact the brand of the establishment. When utilised correctly, online review management systems have increased the opportunity for hotels to monitor and maintain their reputation online. A contribution of the study was the adoption of positive response actions to an existing online review response framework.