"The Impact of Online Travel Reviews on

Tourist Decision-making”

Submitted To:

Md. Kamrul Hassan

Professor
Department of Tourism and Hospitality Management

Faculty of Business Studies

University of Dhaka

Submitted By:

Ummay Habiba Nabila

Batch: MBA 14 th Batch

ID: 2245

Department of Tourism and Hospitality Management

Faculty of Business Studies

University of Dhaka

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 Executive Summary
This research explores the impact of online travel reviews on tourist decision-making, focusing
on popular platforms like TripAdvisor, Yelp, and Google Reviews. As user-generated content
becomes increasingly influential, understanding its effect on travel choices is crucial. The study
aims to analyze how online reviews affect tourists' choices of destinations and
accommodations, identify factors that impact the credibility and trustworthiness of these
reviews, and assess the influence of review characteristics such as ratings and volume.
Additionally, the research investigates demographic variations in the reliance on online
reviews. A mixed-methods approach was used, combining quantitative surveys and qualitative
interviews, along with observational studies in popular tourist spots. Review credibility is
influenced by factors such as the number of reviews, the reviewer's profile, and the detail
provided, with verified and detailed reviews being more trusted. High ratings and detailed
reviews have a stronger impact on decisions, and destinations with a higher number of reviews
are perceived as more reliable. Younger tourists and frequent travelers are more likely to rely
on online reviews, valuing peer feedback over traditional travel advice. The study concludes
with recommendations for travelers to use multiple review sources, for businesses to encourage
detailed and honest reviews, and for review platforms to implement stronger verification
processes to ensure authenticity and reduce the impact of fake reviews. This research highlights
the profound influence of online travel reviews on tourist decision-making and underscores the
need for credible and reliable information to enhance the travel planning process.

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 Table of Content

Introduction......................................................................................................................... 4

Research Objectives ............................................................................................................ 5

Methodology ........................................................................................................................ 5

Literature Review ............................................................................................................... 6

Data Collection Cost and Time ........................................................................................... 7

Data Analysis ....................................................................................................................... 8

Findings ............................................................................................................................. 11

Recommendation............................................................................................................... 12

Conclusion ......................................................................................................................... 13

References.......................................................................................................................... 13

Appendices ........................................................................................................................ 14

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Introduction

The rapid evolution of the internet has fundamentally transformed various aspects of human
life, and travel planning is no exception. The rise of online travel review platforms such as
TripAdvisor, Yelp, and Google Reviews has revolutionized how tourists make decisions about
their trips. Unlike in the past, when travelers relied heavily on traditional promotional
materials, guidebooks, and expert recommendations, today’s tourists have access to an
abundance of information and firsthand experiences shared by fellow travelers worldwide. This
democratization of information empowers travelers to make more informed choices about
destinations, accommodations, restaurants, and activities. Positive reviews often attract
potential visitors, enhancing a destination's or business's appeal, while negative reviews can
deter them, highlighting the critical role these reviews play in shaping perceptions and
expectations. However, this reliance on online reviews also raises important questions about
their reliability, credibility, and overall impact. The authenticity of reviews is a pressing
concern, given the prevalence of fake or biased reviews and the potential for manipulation by
businesses seeking to enhance their online reputation.

The credibility of a review often hinges on several factors, including the reviewer’s profile, the
volume of reviews, the specificity and detail provided, and whether the review is verified.
Understanding these factors is essential for both consumers and businesses aiming to navigate
the complex landscape of online reviews effectively. Moreover, the ways in which tourists
engage with online reviews can vary significantly based on demographic factors such as age,
travel frequency, and familiarity with digital tools. Younger travelers and frequent tourists are
generally more inclined to rely on online reviews, valuing peer feedback over traditional
sources of travel advice. This demographic trend underscores the importance of online reviews
in contemporary travel planning and highlights the need for credible, user-friendly review
platforms. By employing a mixed-methods approach that includes quantitative surveys,
qualitative interviews, and observational studies, the study seeks to provide a comprehensive
understanding of how online reviews influence travel choices, the factors that contribute to
their credibility, and the demographic variations in their use. The findings are expected to offer
valuable insights for travelers seeking reliable information, businesses aiming to enhance their
online presence, and review platforms striving to maintain the integrity and usefulness of their
content. It will also provide practical recommendations for optimizing the use of online reviews
in travel planning, ensuring that tourists can make well-informed decisions that lead to

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satisfying and enriching travel experiences. In doing so, it will underscore the critical need for
trustworthy and authentic user-generated content in the digital age of travel.

Research Objectives

• To examine the influence of online travel reviews on destination choice,

accommodation selection, activity planning, and dining options among tourists.
• To investigate the potential for manipulation and bias in online travel reviews and its
impact on tourist decision-making
• To examine the correlation between online travel reviews and tourist satisfaction with
their travel experiences.
• To analyze the factors affecting the credibility and reliability of online travel reviews.

Methodology

The methodology for this research on "The Impact of Online Travel Reviews on Tourist
Decision-making" uses a mixed-methods approach. An online survey collects data from
tourists on how they use and trust online reviews, incorporating demographic variables. In-
depth interviews explore personal experiences and trust factors in detail. Observational studies
in tourist spots monitor real-time use of review platforms. Ethical considerations, including
informed consent and data confidentiality, are strictly followed. Data analysis combines
statistical techniques for survey data with thematic analysis for interview and observational
data, providing comprehensive insights into review influences on travel decisions. The survey
question prepared for the interview, have one dependent variables and rest of them are
independent variables. List of dependent and independent variables are given below:

Dependent variable:

• Influence of online reviews on decision-making.

Independent variables:

• Impact of overall ratings on destination selection.

• Authenticity of online reviews versus promotions.
• Influence of fake or paid reviews on decisions.
• Effect of fake reviews on travel experiences.

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 • Role of online reviews in shaping destination reputation.
• Trust in online reviews.
• Negative online reviews impacting tourist destination development.
• Accuracy of online reviews.
• Impact of likelihood of writing negative online reviews.

Literature Review

The advent of online travel review platforms has fundamentally reshaped the landscape of
tourist decision-making, as evidenced by an extensive body of literature exploring their
influence. Central to this discussion is the concept of trust and credibility, with studies by Hu
et al. (2019) and Wang et al. (2020) highlighting the importance of factors such as review
ratings and reviewer characteristics in shaping tourists' perceptions of trustworthiness. These
findings underscore the critical role that trust plays in the decision-making process.
Furthermore, research by Xiang et al. (2017) and Lee et al. (2018) demonstrates the direct
impact of online reviews on destination and accommodation choices, with positive reviews
significantly influencing tourists' perceptions and satisfaction levels. Review characteristics
such as volume and content have also emerged as significant determinants of tourist behaviors,
as evidenced by studies by Filieri (2015) and Sparks et al. (2020), emphasizing the need for
informative and detailed reviews to drive decision-making. Additionally, demographic
variations in review reliance, identified by O'Connor et al. (2019) and Schuckert et al. (2019),
highlight the nuanced nature of tourist decision-making processes, with younger travelers and
frequent tourists showing a greater propensity to rely on online reviews. This literature review
provides a comprehensive overview of the multifaceted impact of online travel reviews on
tourist decision-making, underscoring the importance of trust, credibility, review
characteristics, and demographic factors in shaping tourist behaviors. Further research is
needed to explore emerging trends, address methodological limitations, and develop strategies
to optimize the credibility and usefulness of online review platforms in the tourism industry.

Beyond trust and credibility, scholars have also delved into the nuanced dynamics of online
travel reviews, uncovering the intricate interplay between review characteristics and tourist
behaviors. For instance, Filieri (2015) highlights the positive correlation between review
volume and perceived reliability, suggesting that destinations boasting a higher volume of
reviews are perceived as more credible and trustworthy by tourists. Moreover, Sparks et al.

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(2020) emphasize the significance of review content, revealing that detailed and informative
reviews wield greater influence over tourist decision-making compared to brief or poorly rated
reviews. This underscores the importance of not only the quantity but also the quality of
reviews in shaping perceptions and driving tourist behaviors.

Furthermore, demographic variations have emerged as pivotal factors shaping the reliance on
online travel reviews. O'Connor et al. (2019) and Schuckert et al. (2019) shed light on how age,
cultural background, and travel frequency influence tourists' propensity to utilize online
reviews in their decision-making processes. Younger travelers and frequent tourists are found
to exhibit a higher reliance on online reviews, perceiving peer feedback as more valuable than
traditional travel advice. Similarly, cultural differences play a significant role, with tourists
from certain cultural backgrounds placing greater emphasis on peer recommendations when
making travel decisions. These findings underscore the complex interplay between individual
characteristics and review reliance, highlighting the need for a nuanced understanding of tourist
behaviors in the context of online travel reviews.

In summary, the literature review underscores the multifaceted nature of online travel reviews
and their profound impact on tourist decision-making processes. Trust, credibility, review
characteristics, and demographic factors all play pivotal roles in shaping tourist behaviors and
perceptions. Understanding these dynamics is essential for stakeholders in the tourism industry,
as it allows for the development of targeted strategies to optimize the credibility and usefulness
of online review platforms. Further research is warranted to explore emerging trends, address
methodological limitations, and enhance our understanding of the evolving dynamics between
online reviews and tourist behaviors in the digital age.

Data Collection Cost and Time

The proposed research will require funding for survey software, participant recruitment,
transcription services, and data analysis software. A detailed budget breakdown will be
provided upon request.

Phase 1: Planning and Instrument Development (Month 1-2)

Phase 2: Data Collection (Month 3-6)

Phase 3: Data Analysis (Month 7-9)

Phase 4: Report Writing and Dissemination (Month 10-12)

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Data Analysis

Survey data will be analyzed using statistical software (e.g., SPSS) to identify regression and
patterns in respondents' perceptions and behaviors related to online travel reviews. Descriptive
statistics, correlation analysis, and regression analysis will be employed to explore
relationships between variables. Qualitative interview transcripts will be analyzed using
thematic analysis techniques to identify recurring themes, patterns, and insights related to the
impact of online travel reviews on tourist decision-making. Themes will be coded and
organized into meaningful categories to elucidate key findings.

Descriptive Statistics

N Mean Std. Deviation

Impact of overall ratings on 63 4.29 .455

destination selection.

Authenticity of online reviews 63 4.10 .560

versus promotions.

Influence of fake or paid 63 4.17 .493

reviews on decisions.

Effect of fake reviews on 63 4.08 .548

travel experiences.

Role of online reviews in 63 4.10 .560

shaping destination
reputation.

Trust in online reviews. 63 4.16 .515

Negative online reviews 63 4.24 .530

impacting tourist destination
development.

Accuracy of online reviews. 63 4.17 .555

Impact of likelihood of writing 63 4.14 .503

negative online reviews.

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 Model Summary

Adjusted R Std. Error of the

Influence of online
Model R reviews on
R Square 63 Square 4.14 .535
Estimate
decision-making.
1 .512a .262 .136 .497
Valid N (listwise) 63

The descriptive analysis results reveal the mean scores and standard deviations for various
aspects related to online travel reviews and their impact on tourist decision-making. On
average, respondents rated the impact of overall ratings on destination selection highly, with a
mean score of 4.29 out of 5. Similarly, perceptions of authenticity, trustworthiness, and
accuracy of online reviews were generally positive, with mean scores ranging from 4.08 to
4.29. Respondents also expressed concern about the influence of fake or paid reviews, although
this concern was slightly lower compared to other factors. Overall, the findings suggest that
online reviews play a significant role in shaping tourist decision-making, with tourists generally
placing high trust in and relying on them when making travel choices. However, the impact of
negative reviews on destination reputation and tourist experiences remains a notable concern
among respondents.

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 4.637 9 .515 2.088 .047b

Residual 13.077 53 .247

Total 17.714 62

a. Dependent Variable: Influence of online reviews on decision-making.

b. Predictors: (Constant), Impact of overall ratings on destination selection., Trust in online

reviews., Accuracy of online reviews., Effect of fake reviews on travel experiences., Influence of
fake or paid reviews on decisions., Role of online reviews in shaping destination reputation., Impact
of likelihood of writing negative online reviews., Negative online reviews impacting tourist
destination development., Authenticity of online reviews versus promotions.

The ANOVA results indicate that there is a significant relationship between the predictors
(impact of overall ratings on destination selection, trust in online reviews, accuracy of online
reviews, effect of fake reviews on travel experiences, influence of fake or paid reviews on

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decisions, role of online reviews in shaping destination reputation, impact of likelihood of
writing negative online reviews, negative online reviews impacting tourist destination
development, authenticity of online reviews versus promotions) and the dependent variable
(influence of online reviews on decision-making). The regression model accounts for a
significant portion of the variance in the dependent variable, as evidenced by the statistically
significant F-statistic (F = 2.088, p = 0.047). This suggests that the predictors collectively have
a meaningful impact on tourists' decision-making based on online reviews. Further analysis of
individual predictor coefficients and their significance levels can provide deeper insights into
the specific factors driving this relationship.

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 6.019 1.541 3.907 .000

Authenticity of online -.344 .125 -.360 -2.746 .008

reviews versus
promotions.

Influence of fake or paid -.024 .133 -.022 -.179 .858

reviews on decisions.

Effect of fake reviews on -.062 .120 -.063 -.513 .610

travel experiences.

Role of online reviews in -.068 .117 -.071 -.577 .567

shaping destination
reputation.

Trust in online reviews. -.236 .128 -.227 -1.839 .071

Negative online reviews -.223 .127 -.221 -1.756 .085

impacting tourist
destination
development.

Accuracy of online -.021 .123 -.022 -.173 .863

reviews.

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 Impact of likelihood of .294 .132 .277 2.232 .030
writing negative online
reviews.

Impact of overall .223 .151 .190 1.477 .146

ratings on destination
selection.

a. Dependent Variable: Influence of online reviews on decision-making.

The coefficients table provides insights into the relationships between the predictor variables
and the dependent variable (influence of online reviews on decision-making). Among the
predictors, only the authenticity of online reviews versus promotions and the impact of
likelihood of writing negative online reviews show statistically significant relationships with
the dependent variable. Specifically, higher scores on authenticity of online reviews versus
promotions are associated with lower influence on decision-making, while an increased
likelihood of writing negative online reviews is positively correlated with greater influence on
decision-making. The other predictors, such as trust in online reviews and the impact of overall
ratings on destination selection, show trends towards significance but do not reach conventional
levels of statistical significance. These results suggest that while certain factors play a
meaningful role in shaping tourists' decision-making based on online reviews, further
investigation may be needed to fully understand the complexities of these relationships.

Findings

• Overall ratings of destinations significantly impact tourist decision-making, highlighting

the importance of positive reviews in attracting tourists.
• Tourists generally place high trust in online reviews, indicating their reliance on peer
feedback when making travel choices.
• The authenticity of online reviews versus promotions significantly affects tourist decision-
making, with higher authenticity scores associated with lower influence on decisions.
• Negative online reviews impacting tourist destination development show a trend towards
significance, suggesting potential implications for destination management.
• The likelihood of writing negative online reviews positively correlates with greater
influence on decision-making, indicating the impact of user-generated content on tourist
perceptions.

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• Other factors, such as the accuracy of online reviews and the role of online reviews in
shaping destination reputation, show trends towards significance but do not reach
conventional levels of statistical significance.
• These findings underscore the multifaceted nature of online travel reviews and their
profound impact on tourist decision-making processes.
• Further research may be needed to explore the dynamics of these relationships and their
implications for the tourism industry.
• Positive reviews, particularly those regarding overall destination ratings, significantly
impact tourist decision-making, emphasizing the importance of favorable online feedback
in attracting visitors.

Recommendation

• Encourage businesses and destinations to actively solicit and promote positive online
reviews from satisfied customers, as favorable ratings significantly impact tourist decision-
making.
• Implement measures to enhance the authenticity of online reviews, such as verifying
reviewers' identities or providing incentives for genuine feedback, to build trust among
potential tourists.
• Develop strategies to mitigate the impact of negative online reviews on destination
development, including prompt responses to negative feedback and proactive efforts to
address underlying issues.
• Provide training and support to businesses and destination managers on how to effectively
manage and respond to online reviews to maintain a positive reputation and attract visitors.
• Foster collaboration between businesses, destination marketing organizations, and online
review platforms to ensure the accuracy and reliability of online reviews and minimize the
influence of fake or biased content.
• Leverage social media and other digital marketing channels to amplify positive online
reviews and showcase the unique experiences and offerings of destinations to potential
tourists.
• Monitor and analyze online review trends and feedback regularly to identify areas for
improvement and tailor marketing efforts to meet the evolving needs and preferences of
tourists.

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• Foster a culture of transparency and accountability in the tourism industry by openly
addressing issues raised in online reviews and demonstrating a commitment to continuous
improvement and customer satisfaction.

Conclusion

In conclusion, the impact of online travel reviews on tourist decision-making is undeniable,

shaping destination choices, perceptions, and experiences. Trust, authenticity, and the
influence of positive and negative reviews emerge as key factors driving tourist behaviors.
While businesses and destinations can leverage positive reviews to attract visitors, addressing
authenticity concerns and effectively managing negative feedback are crucial for maintaining
a positive reputation. Collaboration between stakeholders and proactive measures to enhance
review credibility are essential in navigating the digital landscape of tourism. Understanding
and harnessing the power of online reviews is paramount in meeting the evolving needs and
expectations of today's travelers.

References

1. Filieri, R. (2015). What makes online reviews helpful? A diagnosticity-adoption framework

to explain informational and normative influences in e-WOM. Journal of Business Research,
68(6), 1261–1270. https://doi.org/10.1016/j.jbusres.2014.11.006

2. Hu, N., Zhang, J., & Pavlou, P. A. (2019). Overcoming the J-shaped distribution of product
reviews. MIS Quarterly, 43(3), 913–940. https://doi.org/10.25300/MISQ/2019/14468

3. Lee, G., & Hosanagar, K. (2018). Do online reviews reflect a product's true perceived
quality? An investigation of online movie reviews across cultures. Information Systems
Research, 29(3), 565–585. https://doi.org/10.1287/isre.2017.0768

4. O'Connor, P., Frew, A. J., & Morrison, A. (2019). Tourism information behavior:
Understanding how tourists look for information about where to visit. Journal of Travel
Research, 58(7), 1073–1088. https://doi.org/10.1177/0047287518804436

5. Schuckert, M., Liu, X., & Law, R. (2019). How do tourists process online reviews? An
examination of their information processing and decision-making styles. Journal of Travel
Research, 58(1), 29–44. https://doi.org/10.1177/0047287517748404

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Appendices

Survey Questions:
1. Gender:
• Male
• Female
• Non-binary/Other
2. Age:
• Under 18
• 18-24
• 25-34
• 35-44
• 45-54
• 55-64
• 65 and over
3. Employment status:
• Employed full-time
• Employed part-time
• Unemployed
• Student
• Retired
4. Travel companions:
• Solo traveler
• Traveling with family
• Traveling with friends
• Traveling with a partner/spouse
5. Online travel reviews influences the decision-making process when planning a trip
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

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6. When reading online travel reviews, both positive and negative feedback before finalizing
travel plans are considered
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
7. The overall ratings of destinations or accommodations in online travel reviews significantly
impact the selection of destination
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
8. Online travel reviews provide a more authentic perspective on destinations and
accommodations compared to promotional materials?
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
9. Fake or paid online travel reviews are influencing the travel decisions
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
10. Fake online travel reviews results negative travel experiences.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
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11. Online travel reviews play a significant role in shaping the reputation of tourist destinations
and businesses.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
12. Online travel reviews are more trustable than recommendations from traditional travel
guides or brochures.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
13. Businesses and destinations should respond to online travel reviews, whether positive or
negative, to show they value customer feedback.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
14. Online travel reviews can be inaccurate or misleading.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
15. People like to write negative online reviews more than positive online reviews.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
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16. Negative online reviews impacts on potential tourist destination development.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

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