TRIP ADVISOR "FRIEND OR FOE"

In this Day and age technology is part of everyday life and we rely on deeds of others to provide us with information to assist us in the decisions we make

 SO WHO AND WHAT CAN YOU BELIEVE?

Here we have the issue of David and Goliath – the corporations and the individual hotels, the big name groups have the Deep pockets to keep themselves on Trip Advisor, roll with the punches taking the hits from the guests and the fees as I am sure these properties get group deals with Trip Advisor and the rates are reduced.

That’s why the below Story is interesting and it shows how a Great value system like Trip Advisor is squeezing the small enterprises and causing them a dilemma – Do I stay and pay the fees with the hope to get a Return on Interest with potential great reviews and increase in bookings or pay the fees and don’t see a upturn get mediocre reviews and be no different to what I am. Then the flip side is do I quit the subscription and go it alone with other avenues of review and hope to make a profit or return with the Consequences of failing only to pay hiked rates to get back on track

It’s a Tough decision and here is why (I will not be using names for the request of the person)

 As a member of a hotel association in the Caribbean the fees went for joining Trip Advisor went from US 660.00 in 2013, US 742.00 in 2014 and US 1,021.50 in 2015 to US 1,500.00 in 2016. 

Trip Advisor’s excuse for the 47% increase – “new features they added”. 

I decided not to renew and regretted it when after spending US 1.25 M on our rooms in the hotel, as we shot to the top of the leaderboard. I felt I should take advantage of our high placement as the #1 hotel in my area and the #4 on the island. This was the time to make the most of my enviable position and felt that the business listing would be beneficial. 

I contacted them and they quoted some ridiculous figure – like US $4,000 - because they said I had cancelled my previous listing, could not get the group rate and would come in as a new member.   

I negotiated and got them down to US 2,199.00 which I hated having to pay based on previous years but agreed nonetheless. In June 2017 they told me my renewal fee would be US 3,200.00 with more new features. I told them I didn’t want the new features, I would keep the ones I had at the same cost as the previous year. They told me if I didn’t take the new features I would have to pay US 2,700.00 – $500.00 more a year on year for nothing additional. This is when I decided I had to walk away. I felt there was no rhyme or reason for the increases – almost as though they quoted any amounts that came to mind.  I felt by paying whatever figure they decided on, they would continue to quote exorbitant fees just because they could and because hoteliers would pay to keep their business listings.

I spoke to the Tourism Association of the island and a President-Elect from a well-known organization. The organization said that they had received numerous complaints of price gouging and were in dialogue with Trip Advisor.

In the meantime, I had a deadline and could not wait on the outcome of their negotiations. I made up my mind that I would not spend a cent more than what I paid the year before and was prepared to walk away. 

I wrote that email and received a telephone call from Trip Advisor the very same day. They were very careful not to put anything in writing but said they were discussing the matter and my concerns with their supervisors. A few days later they agreed (by telephone again) to allow me to renew at the same rate I paid the year before.

I am sure when my 2018 renewal comes around in early July I will receive an email from them quoting some huge unreasonable figure and I will do exactly the same. I will tell them I will not pay a cent more – take it or leave it. I have discussed this with my team and have decided that if they want to negotiate, the absolute most we will agree to pay is 3% to 5% in line with the increases in our room rates.

Honestly, Trip Advisor has been a Godsend for us – allowing us to compete with the larger, more popular resorts. The thing is and I will never tell them is – 9 out of 10 first time guests choose our hotel because of their website and I would prefer to keep my relationship with them as it currently is. 

I would strongly encourage all hoteliers to fight for their rights as a customer and hold firm for a reasonable renewal rate I don’t have a problem with you telling other hoteliers that a small hotelier in the Caribbean have successfully negotiated a renewal rate that he was comfortable paying but that he had been prepared to walk away if they were not willing to negotiate. 

So from me I feel that it is the right of Small businesses to start to stand up for their establishments and not to be bullied by these increases, Associations in areas should support the small business a lot more as we literally are the Back bone of the industry and people still want to come to us for that difference.  

"Remember with the Industry Trip Advisor would not be what it is without us, the Industry was here long before Trip Advisor"