May 2, 2017
In the hotel business, brand names mean a lot less than they used to. That is the conclusion of a recent study by Brett Hollenbeck, an assistant professor at UCLA Anderson School of Management. By looking at hotel revenue and reviews, he found that while chain hotels still have more sales than independent ones, the margin is narrowing considerably. And the change is largely driven by the growth of online reviews and ratings. Independent hotels got more of a revenue bump than branded hotels from factors such as the number and types of reviews they receive.