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Managing Online Reviews on TripAdvisor Case Solution

Solution Id Length Case Author Case Publisher
2557 1321 Words (6 Pages) Thales S. Teixeira, Leora Kornfeld Harvard Business School : 514071
This solution includes: A Word File A Word File

TripAdvisor, the travel site company was established in 2000 in the hope to resolve the issues which the co-founders experienced personally. The company was ranked as the most visited online travel website due to the gigantic information regarding hotels and travel services. In their initial days, the business model was developed to make earnings via banner ads and licensed content. However, the co-founders along with their team later changed their strategy and put forwarded this idea to consider only reviews and ads on the site. For this, the company also catered to the needs of users by providing authentic and genuine reviews which are also written by the general public. The authenticity along with the free subscription made the company popular among users and consumers got this motivation to share their experiences in the form of reviews to facilitate others and also be vocal about their bad or good experiences. This also impacts the hotel businesses and hotels actually started responding and investing more time and effort to manage the online reviews and improve their services on the basis of recommendations. The following questions were specifically answered to illustrate the case in detail. Each answer was penned down with proper justifications that were taken from the article. Additionally, the recommendations were also added in some of the answers where it was needed. 

Following questions are answered in this case study solution

  1. Why has TripAdvisor become a successful source of hotel reviews?

  2. How can TripAdvisor improve its product for consumers? 

  3. Why is TripAdvosor so appealing to customers? Why do users write hotel reviews? Why do users read hotel reviews? 

  4. How can major hotel chains influence hotel reviews? Should they even try to? If so how? 

Case Analysis for Managing Online Reviews on TripAdvisor

1. Why has TripAdvisor become a successful source of hotel reviews?

Normally, the main challenge that occurs on social networking sites is relevance and trust. Consumers always consider reviews and recommendations from “people like me”. Moreover, many review sites usually make money through subscription charges, however, in the case of Trip Advisor, the company did not follow the said approach. Also, the company grabbed the opportunity of first-mover advantage and introduced a refined user interface where the general public was able to share their hotel or restaurant experiences which are purely candid, hence are not endorsed or paid. This tactic made the platform more successful and the company allowed users to leave their unbiased reviews instead of those which are paid. This strategy becomes more reliable as compared to traditional strategies such as brochures or advertisements for hotels. Is even observed in a survey that illustrated a case that 72% of people put their faith in online reviews with the assumption that they are not good or overly bad due to the indication of false reviews. As discussed, the company does not charge any fee at least not in the case of the viewer. Visitors are happily welcome to the site to read reviews without paying any fee and could make contrasting assumptions about flight and hotel prices. They earn through page advertising and click banner strategy where the bonus is earned by the company through good deals especially when the user clicks on the banner to consider the specific hotel. Conclusively a continuous evolution, refinement of the user interface, and candid reviews of users made it a popular and successful platform where users can easily get the inside track of hotels from genuine reviews at no cost.

2. How can TripAdvisor improve its product for consumers? 

Suggestions to Improve the Services

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