The impact of positive and negative electronic word-of-mouth (eWOM) on the hotel industry

Abstract

Listening to or reading others’ experiences can sometimes win over potential customers more than normal company advertising. Electronic word-of-mouth is defined as any online communication that is targeted towards current or potential customers (Litvin, Goldsmith and Pan, 2008). This study aims to investigate the impact of electronic word-of-mouth on the Hotel Industry in Malta and how hotel mangers respond to guest reviews and overcome negative electronic word-of-mouth. Moreover, it seeks to find out what impact social media has on hotels. The elements of trust and customer loyalty were important, and how nowadays, word-of-mouth is incorporated into the customer decision-making process to make an informed decision. A method of qualitative research is opted for, so data was collected through semi-structured interviews. Transcripts of data were then analysed using the MAXQDA 2020 software, whereby initial codes were generated and the themes were developed using thematic analysis. The results in this research found that electronic word-of- mouth is given importance by all participants, where positive guest reviews and ratings help motivate the hotel and its workforce, and negative guest reviews can help a hotel improve if the reviews and comments reflect true experiences. Lastly, limitations are discussed as well as the conclusions and suggestions for future recommendations.