Just how real is online reputation management? According to a press release issued by Willis in October, hotels can now get insurance to guard against the effects that bad PR can have on their bookings. The release reads, "To help protect hoteliers from losses as a result of such adverse publicity, Willis Group Holdings the global insurance broker, in conjunction with Lloyd's of London underwriter Kiln, has created a policy aimed at limiting the financial fallout from negative PR."
The release goes on to say, "Laurie Fraser, Global Markets Leisure Practice Leader for Willis said: "In the extremely competitive hotel industry, reputation accounts for approximately 30-40 percent of a business's overall worth. Therefore, damage to reputation, which spreads virally through social and other media channels, can have a significant financial impact. Our product is designed to tackle both the actual loss of revenue and the costs of containment."
Of course the best way to prevent a PR disaster is to monitor your online reputation so you're aware of murmurs before they become screams. Using Revinate, a hotel can see every tweet, tagged photo or video, public Facebook post or blog entry about your property in real time. These notifications become your best defense against a potentially harmful story that has the power to be retweeted and shared. Adress the issue immediately with the guest and you can circumvent the need for disaster recovery later.