Effects of online reviews and managerial responses from a review manipulation perspective

Unlike online travel agencies (OTAs), travel review websites allow travellers without purchase records to share their opinions. However, the effects of two mechanisms, namely, verified and unverified reviews, on traveller decisions remain unclear. In this study, managerial responses (MRs) and traveller bookings data were collected from TripAdvisor (a travel review website) and Expedia (an OTA), respectively. The following findings were drawn after matching the review data from these websites: (1) Expedia has more credible reviews than TripAdvisor. Therefore, higher review volume and valence ratio between Expedia and TripAdvisor significantly increase traveller bookings; (2) more MRs on TripAdvisor is significantly associated with lesser bookings because travellers treat MRs on TripAdvisor as acts of review manipulation instead of positive efforts by hotels; and (3) the number of MRs significantly and positively moderates the effect of review volume and valence ratio on traveller bookings. This study also discusses the practical and theoretical implications of its findings for both academics and travel practitioners.