The underestimated online clout of hotel location factors: spillover effect of online restaurant ratings on hotel ratings

This study constructs a two-factor fixed effects model using monthly data from the Yelp open dataset spanning 2016 to 2021 to explore the effect of restaurants on hotel online ratings. Results reveal a positive spillover effect of online restaurant ratings on hotel ratings that diminishes with increasing distance between the restaurant and the hotel. Furthermore, although other restaurants' higher average ratings can enhance hotel ratings, they may also dampen the positive influence of the target restaurant's ratings on hotels. The findings mirror consumer perceptions of the link between hotels and restaurants and the significance of an integrated travel experience.