Which of the following is NOT an impact of word-of-mouth on a hospitality business?

The impact of word-of-mouth in the hospitality industry is multifaceted, and it influences various aspects of a business. The reason "lower operational costs" is not an impact of word-of-mouth lies in the nature of how word-of-mouth functions in the context of hospitality.

Word-of-mouth generally refers to the informal exchange of information about a business, often driven by customer experiences. Positive word-of-mouth can lead to increased bookings and enhanced reputation because satisfied customers are likely to recommend the business to others, thereby attracting more clientele. Conversely, negative reviews can harm a business's reputation and discourage potential customers.

While positive word-of-mouth can create a surge in business, leading to higher revenue, it does not inherently reduce operational costs. The costs related to providing quality service, maintaining facilities, training staff, and marketing efforts are largely unaffected by the flow of communication from customers. In fact, a business may find the need to invest more in customer service initiatives or promotional activities in response to customer feedback.

Thus, the lack of a direct correlation between word-of-mouth and lower operational costs reinforces why this is the correct choice in the context of evaluating the impacts of word-of-mouth on a hospitality business.