Understanding the Effect of Online Reviews on Consumer Decision-Making: Evidence from Alaya Resort Ubud

Abstract

Purpose of the study: The study's primary aim is to understand how online customer reviews on Booking.com influence the decisions of potential guests to book rooms at Alaya Resort Ubud. Methodology:  This research utilized a quantitative descriptive approach, gathering data through questionnaires. The respondents were a random sample of 100 potential guests of Alaya Resort Ubud. Main Findings: The ensuing analysis unveiled a statistically significant correlation between online reviews and booking decisions, as evidenced by a t-value (3.717) that surpasses the critical t-value (1.984). Applications of the study: The implications of this study bear considerable relevance to hotel and resort management entities. It furnishes invaluable insights that can guide the development of efficacious marketing strategies and customer service paradigms to positively influence room booking decisions. Novelty/Originality of the study: This study expands the existing body of knowledge by offering unique insights into the profound impact of online reviews on room booking decisions, specifically within the context of a resort setting. This novel understanding could catalyze other resorts and hotels to optimize their online review management strategies.