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EU Consumer Summit 2014

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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EU Consumer Summit 2014

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  1. 1 April 2014 EU Consumer Summit 2014 Study on online hotel reviews Tobe Nwaogu Principal Consultant

  2. 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.

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. Compulsory action needed to increase trust? Verification of the reviewer's identity and actual stay are key!

  10. 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?

  11. 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

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