Social Media and user-generated reviews are transforming competition in the hospitality industry.
On-line ratings of user-generated reviews on TripAdvisor have a positive effect on hotel revenues that is outweighed by a negative effect on gross profit margins.
Hotels placed outside popular destinations get more advantages from their online visibility on their gross and net profitability than hotels placed in popular destinations.
Hotels with higher star-rating get more benefits from online visibility on their gross and net profitability.
Hotels with a lower degree of local competition get more benefits from online visibility on their gross and net profitability.