Why bad reviews could actually be good for your vacation rental

A negative review can be good for a vacation rental business for several reasons. Read on and find out what the advantages are.

Contrary to popular belief, negative reviews could actually be a good thing for your vacation rental for a number of reasons. Firstly, bad reviews provide feedback from which to improve and correct any problems that might exist surrounding your property or the service you offer to your customers. As a result, this can help to reduce complaints in the future as well as improving overall customer satisfaction.

Secondly, negative reviews can be an effective way to show future customers that your business is transparent and trustworthy. If a negative review is managed well and appropriate measures are put in place to ensure that the problem mentioned in the review isn’t repeated, you can demonstrate to your customers that your business is willing to listen and take customer views on board.

Finally, negative reviews can bolster your total number of reviews as well as making your online profile look more authentic. If all reviews left are positive, then this can appear suspicious and work against you as guests doubt their validity. On the other hand, a balanced mix of positive and negative reviews can generate a more realistic and trustworthy impression.

Customers don’t trust 5-star ratings

People in general aren’t very trusting, especially those prepared to spend large amounts of time and money searching for a vacation rental. Simply put, a vacation rental with only 5-star reviews is viewed as simply too good to be true.

What might be considered as common-sense is also supported by a study undertaken by Northwestern Medill. They show that a mix of positive and negative ratings and reviews generates credibility and evidence customers’ stamp of approval, even if they lead to a lower average rating. This is important as authenticity and confidence are greatly valued by customers and could even be what tips the balance in your favour when it comes to making a reservation.

This is one of the reasons why, as unlikely as it may seem, negative reviews can end up having a positive impact on your vacation rental business, in the shape of more reservations being made.

The balance between good and bad reviews

In general, bad reviews can be seen as an asset, as previously stated. But there is a limit. Receiving some negative reviews, as part of a large number overall, can help to improve your business. But too many can end up damaging it. The issue is ultimately ‘how to find the perfect balance between good and bad reviews’.

A study carried out by Uberall regarding conversion rates that can be obtained from differing average ratings can help us to answer that very question. The best conversion rates can be seen with properties that have been awarded an average rating of between 4.6 and 4.9 stars.

An average rating of 4.9 stars provides the highest conversion rate. However, with no negative reviews and an average of 5 stars, the conversion rate falls to a level equivalent to that of a property with an average score of just 4.5 stars.

Other interesting statistics generated by this Uberall study show that an average score of 4.4 stars is associated with a growing conversion rate and that achieving an average score of 3.7 stars is an important landmark to reach in the journey towards boosting your conversion rate.

Negative reviews help customers to decide

Whilst it might seem like a contradiction, negative reviews actually help customers in making their decisions. Even the worst reviews of very few stars awarded can actually provide benefits to vacation rental businesses and even help to increase conversions.

A PowerReviews study shows us why: by reading the worst reviews of a property, customers can determine what are perceived to be the worst elements of a vacation rental.

One customer may, for example, give a low score because a vacation rental is located on the third floor without access to an elevator. Another client, however, may not consider this to be an impediment but in fact an opportunity to do some exercise.

The study shows that the most critical consumers, those that actively search for negative reviews, have a higher conversion rate than those that don’t study them with a fine-tooth comb. 108.8% higher, to be precise.