Influence of reputation online on prices of vacation rental properties in Tenerife

Abstract

Reputation online is important for marketing strategy and for increasing business results by establishing higher prices and obtaining higher conversion rates. Good opinions and evaluations of vacation rental properties have positive influence from one side on added value and from another one on decision making process of customers. A principal objective of this Master Thesis (by its Spanish abbreviation TFM) is to analyze existence of relationship between online reputation of vacation rental properties and its prices. For case study is taken the data from estate agency located in Canarias, the island of Tenerife. The objective is reached through realizing of scientific literature review and implementation of selected methodology for the TFM. The data about accommodations with its detailed characteristics and statistics is being collected from the platform Booking.com. Later it is processed and visualized in order to create appropriate data base and to reach valuable result with the selected homogeneous sample of accommodations. The apartments with 1-bedroom in touristic zone of Arona municipality (38% of total agency base) confirm the direct relation between reputation online and its prices. In the platform properties offer prices from 5% (one point of difference in evaluation) to 20% (five or more points) higher than those who have lower scores. Apart from this, with improving of reputation online properties become more visible in the platform and therefore have higher possibility to being reserved by customers