What is the Online Reputation Index (IRO)?
The Online Reputation Index (ORI) is an exclusive indicator for myHotel clients. It gathers data from thousands of hotels across Latin America from online travel agencies and web review platforms.
This score evaluates each hotel's reputation, allows for comparisons with competitors, and analyzes how hotels in the Latin American hospitality industry manage their guests' online experience.
What is it Based On?
The Online Reputation Index is calculated using an algorithm that produces a performance percentage from 0 to 100%.
The IRO is composed of the sum of the following dimensions:
1. Online Rating: This is the weighted average score the hotel receives by grouping ratings generated on OTAs and other review channels within a specific period.
How am I evaluated?
2. Coverage: This represents the percentage of reviews the hotel has responded to during the period. It measures management effectiveness.
How effectively do I respond to guest reviews?
3. Reviews: This indicates the quantity of reviews guests have published about your hote
How many reviews can I generate relative to my number of rooms?
How is it Calculated?
The IRO is the weighted average of the average rating from review sites, the coverage (response rate), and the number of reviews generated by your guests.
The algorithm considers the three dimensions mentioned above, giving greater weight to those that are more controllable and/or manageable by the hotel.
Let's Talk About Each Dimension
Rating - 50%
For the IRO calculation, the Rating dimension accounts for 50% of the total index. This means the score guests give to the hotel is the most crucial aspect of online reputation.
Coverage - 30%
The Coverage dimension is the second most important, as it reflects the hotel's online interaction with its guests. It also gives a higher score if the hotel prioritizes responding to negative and neutral reviews.
Reviews - 20%
The third dimension is the number of Reviews, which reflects how many reviews a hotel is capable of generating in relation to its number of rooms. The algorithm has already established the maximum achievable number of reviews for a hotel based on a benchmark with hotels of similar room ranges in LATAM.
Let's See an Example
Online Reputation Index (IRO)
*The "Visible result in the period" represents the actual score the hotel achieved.
*The "Achieved performance" refers to how close the hotel came to 100%, which is the maximum attainable score based on results from hotels in LATAM with a similar number of rooms. This indicates how much was gained in each dimension or each dimension's contribution to obtaining the Online Reputation Index.
Why Use IRO as a Key Metric in Your Hotel?
Risk Anticipation
The IRO helps you identify which online reputation dimensions you're not managing effectively. This allows you to find ways to mitigate risks before they escalate into an online reputation crisis.
Comparison
Use the IRO to compare your hotel with the market. This way, you can always strive to stay a step ahead of your competitors.
Strategic Objective Management
The IRO allows you to set clear objectives to create strategies for each of them, leading to an overall result that aligns with the industry and, most importantly, with what guests expect from you.
How to Know if My ORI is Good?
With the myHotel platform, you can monitor your IRO whenever you need to. Plus, our tool will analyze your results and provide insights to help you quickly and proactively identify areas for improvement if opportunities arise.