TripAdvisor has developed far beyond the humble review site it once was, and according to a new study, is having a considerable impact on the travel industry.
A new study conducted by Oxford Economics on behalf of TripAdvisor found the online website is not only helping travellers choose destinations and properties, it’s also expanding their options and driving bookings to smaller, lesser known areas.
The Global Economic Contribution of TripAdvisor study established a link between TripAdvisor content and destination choices by finding that the there is an increase in the number of trips taken to a particular destination as the content – such as photos, reviews, listings and information – for that destination increases on TripAdvisor.
This link was apparently responsible for influencing 13 percent of all international travel and almost eight percent of all domestic travel worldwide in 2014.
Of the international trips taken, the online giant helped increase the length of trips by generating 352 million additional tourism nights over the year.
“[This] demonstrates that TripAdvisor content not only increases the number of trips taken globally, but also leads to travellers taking longer trips and extending their stays in destinations,” the report read.
A key finding was that the site gave the smaller guys a bigger chance at making sales. This is being achieved through the confidence amongst consumers to choose a property based on reviews, ratings and photos from other travellers. This trend particularly benefits non-branded businesses, enabling small and independent businesses to compete on more of an equal footing with larger, more internationally recognisable brands.
Australian small business owners are seeing the significant impact TripAdvisor is having on their businesses, including Graeme Dodd, owner and sole operator of Bike Buffs bike tours.
“Word of mouth is how people find out about my business; the influence and reach of TripAdvisor is really crucial to the success of my company.”
Graeme Dodd, Bike Buffs Owner
“Exposure on TripAdvisor has opened up opportunities to both local and international audiences which would not have otherwise been possible.”