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1 April 2014. EU Consumer Summit 2014. Study on online hotel reviews . Tobe Nwaogu Principal Consultant. Fake reviews: A problem?. The aim of this study is to look in-depth on the issue of online consumer reviews in hotels Study Timeline: January to mid-May
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1 April 2014 EU Consumer Summit 2014 Study on online hotel reviews Tobe Nwaogu Principal Consultant
Fake reviews: A problem? • The aim of this study is to look in-depth on the issue of online consumer reviews in hotels • Study Timeline: January to mid-May • Website checking: Over 400 websites were checked and the majority of websites were mixed travel/booking and reviews websites • Stakeholder survey: 58 responses to a stakeholder survey: 11 Member State authorities, 18 ECC, 17 consumer organisations, 5 industry associations, 7 web operators • The extent of the problem is uncertain and varies by region and country. Awareness of the extent of the problem also varies, but most stakeholders agree it is a growing problem.
Problem Awareness Major problem: 2 industry associations 3 consumer orgs Growing problem: 8 MS authorities -ECC 8 consumer orgs Minor problem or one involving isolated cases: 13 MS authorities-ECC 3 consumer orgs E-reputation firms
Presentation of Reviews Default setting is by date on 80% of website. Just 50% of websites allow user to sort reviews 70% show quantitative and qualitative criteria. Majority have 4-7 criteria. 60% of websites don't explain scoring system
Time-limited Reviews 3 of every 4 websites showed how many online reviews they have… Only 1 in 10 limited reviews to a given time range
Verification of Identity 20% state that “only verified reviews will be published” - 1 in 4 websites allow a consumer to post reviews directly! - 1 in 3 websites allowed social media accounts - 1 in 2 websites required an account to be created
Evidence of Stay Less than 1 in 4 websites required an email link/ booking reference to post a review Only 1 in 5 websites allowed consumer to submit photos … Less than 1 in 5 websites had the “dates of stay” of the consumer indicated
Reviews Policy Over 60% had “terms and conditions”… but only 40% state how reviews will be treated.. 70% state “right to delete reviews”… 40% have “right to change reviews” 16% state “reviews will not be changed or modified” On nearly 80%, no clear indication how hotel can complain
Compulsory action needed to increase trust? Verification of the reviewer's identity and actual stay are key!
Majority of stakeholders were broadly in support of: National/EU-wide awareness campaigns. Also : guidance and best-practice, more active monitoring and enforcement. Accreditation schemes more strongly supported by consumer orgs. * Limited responses web-operators: favour mostly company specific initiatives What options are there for increasing trust?
Key challenges in addressing fake reviews • Ability of the industry to self-regulate – can businesses be trusted to self-regulate, taking account of their own interests (or business models) • Privacy issues- provision (and protection) of personal data versus ensuring absolute online anonymity • Legal considerations/burden of proof issues – who is legally responsible for fake reviews: the review website operator, the business owner or the consumer • Resource issues for review website operators and authorities – only big players can afford some technical solutions (software) and/or teams of editorial staff. Some national authorities experience resource constraints • Lack of consumer awareness regarding pitfalls, responsibilities and options for complaints