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Luxury hotels post fake online reviews to compete with Airbnb, researchers discover
Airbnbs have provided an appealing alternative to conventional hotel stays, often offering more accommodations and lower prices. Hotels have retaliated by slashing their own prices, but the authors of the current study wanted to see if other underhanded tactics were at play.
Before Airbnb became the go-to site for rentals, hotels were already manipulating their reviews. Past research found that 15% to 30% of online hotel reviews were fake. These fabricated reviews came from hotel managers to boost ratings and drag down competitors. The current study expands on the findings to see if "review manipulation" has increased since Airbnb's launch in 2008.
The team collected data on 2,188 hotels in 67 cities in Texas. The hotels were divided into two groups, low-end and high-end hotels. Tax records were also obtained to confirm the times when hotels were competing with each other. They also analyzed data taken from AirDNA and categorized Airbnb listings into low-end and high-end categories. The reason for this, they explain, is because renting a private mansion with maid service and a pool is more likely to drive away people from a resort than a small cabin in the woods.
Results showed that high-end hotels increased their review manipulation tactics when Airbnb came to market, most likely finding pressure to keep up with their options. The fake reviews were often positive and less about trashing other hotels with similar price points.
Interestingly, Airbnb's presence in the global market did not affect reviews for low-end hotels. The rate of positive or negative fake reviews stayed the same. The study authors explain this is likely because customers are less likely to rely on reviews rather than prices and space availability in these locations.
"A lot of people who stay at low-end hotels are less likely to pay attention to reviews compared to people trying to decide if a $500 resort is worth their money," adds Cheng Nie, an assistant professor of information systems and business analytics at Iowa State University and lead study author, in a statement. People considering high-end hotels frequently have high expectations for their stay and are more likely to search for any red flags before booking.
The study is published in MIS Quarterly.
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