Global economies and events have taken their toll on the tourism industry and, by extension, on the hospitality industry as well. Growth and profitability for hotel chains has been significantly impacted, with supply outstripping demand in many markets as more people have avoided long distance travel due to rising costs and fears of terrorist attacks.
Social media and sites like TripAdvisor.com have also had an enormous influence on public opinion about a particular hotel. When travelers can read online reviews about an establishment's location, amenities, customer service, cleanliness, and ambience, they form an opinion based on other travelers' experiences, and not on the hotel's marketing efforts. A couple of bad reviews is all it takes to damage your reputation with the paying public. Managers can adopt customer rewards and reputation management programs to mitigate the damage and keep ahead of the curve.