In an industry-first data story, Lighthouse’s own Blake Reiter and Daniel Foreman teamed up to answer a question that’s long hovered over hotel revenue strategy: How much do review scores actually affect your ability to price rooms?

Spoiler: A lot more than you might think.

Why This Matters

For years, many revenue managers have suspected that review scores play a role in pricing power. Now, we have the numbers to back it up. Lighthouse analyzed Booking.com data across multiple regions, star segments, and markets to reveal how much each 0.1-point increase in review score correlates with price premiums.

The answer? It depends on where and what kind of hotel you run—but in many cases, the impact is significant.

Let’s Break It Down: Price Increments & Elasticity

In this data story, Blake introduced a new metric called “price increment”—the average dollar value per 0.1 increase in review score. For instance, if the increment is $3, moving from a 7.5 to a 7.6 score gives you $3 more in pricing power.

Here’s what we found in the data:

In the U.S.

• Two-star hotels had a price increment average of $1.47. That might seem small, but for an 85-key hotel at 68% occupancy, that’s an extra $31,013 annually. (Free palindrome alert!)

• Three-star hotels in leisure-heavy destinations (e.g., Santa Fe, Palm Springs) showed the strongest price elasticity, with increments nearing or exceeding $3 per 0.1 points.

• Four- and five-star segments saw growing price increments due to higher expectations tied to amenity quality.

In Europe

• The standout difference? More variety. With more independent hotels, varied amenities and inconsistent star rating standards, review scores act as a universal language.

• Cities with high international inbound travel (e.g., Rome, Venice, Madrid) saw the largest price increments, especially at the 4- and 5-star level.

• In standout markets like Gran Canaria, a 0.1 point change in review score was worth up to $22 more per night.

It's Not Just About the Money

Lighthouse’s findings also bring operational alignment into focus. Review scores don’t live in a revenue silo. They’re a reflection of guest experience, which makes them the perfect bridge between Ops and Revenue teams.

Why that’s important:

• Revenue managers can use this data as an icebreaker on strategy calls.

• Operations teams gain insight into how guest experiences translate directly into pricing power.

• Both sides win when they work toward improving review scores—it’s not just about pleasing guests; it’s about bottom-line impact.

Tactical Takeaways for Revenue Managers

1. Audit your compset – Even if your market as a whole shows weak correlation, your specific compset might not.

2. Small gains = big wins – Even a 0.1-point increase can snowball into better visibility, more bookings, and increased pricing power.

3. Understand the ranking buckets – Platforms like Booking.com often group hotels by score tiers (e.g., 8.0–8.9, 9.0+). Crossing into the next tier can significantly increase your visibility and competitiveness.

Key Market Insights

• Leisure-dominant U.S. markets (e.g., Santa Fe, Naples) and metro hubs (New York, Chicago) showed strong score-price correlations.

• European hotspots—especially in Italy, Spain, and France—benefited from international traveler reliance on review scores as booking guides.

• Five-star properties had the largest pricing increments, especially in prestige markets where the difference between “luxury” and “ultra-luxury” can mean hundreds in nightly rates.

Final Word: Review Scores as a Strategic Lever

Review scores are more than just feedback—they’re a critical lever in your revenue strategy. Whether you're managing a boutique hotel in Rome or a branded property in Tampa, understanding the value of every 0.1 point can help you push rates with confidence.

So, next time you hear “our review score is only a 7.8,” don’t shrug it off. That decimal could be the key to unlocking thousands in untapped revenue.