Web-based technologies, especially social media, are increasingly becoming important in performing business operations (Hanafizadeh, Hanafizadeh and Khodabakhshi, 2010). Social media refers to the various online applications, media, technologies and platforms that facilitate collaborative, interactive and real time sharing of content (Palmer and Koenig-Lewis, 2009). As opposed to the traditional technologies such as email and internet which only facilitated passive and one way absorption of information on the websites, social media networks allow for immediate interaction of people, active and real time sharing of information, low cost and interactive communications (Miller, Fabian and Lin, 2009).
An important aspect of social media networks relates to its role and impact on business communities. Research shows that both small and medium enterprises and even larger organizations have adopted social media in an attempt to promote social engagement, exploit and monetize innovations in business models and mine value from data and content sources from the social media audiences (Treem and Leonardi, 2013; Michaelidou, Siamagka and Christodoulides, 2011). Organizations and business communities are increasingly utilizing social media networks to nurture strong relationships with their target communities, collect audience intelligence, and exploit network effects, which are then infused in the marketing mix of product development, public relations and advertising, pricing and sales promotion to the targeted audience (Ang, 2011).
The evolution of technologies such as twitter, LinkedIn, facebook and YouTube lends the hospitality industry unlimited access and interactions with guests (Lanz, Fischhof and Lee, 2010). Because any person with internet connectivity can access the internet, the hospitality industry should increase its adoption and use of the social media platforms to increase brand awareness, provide immediate and quality feedback to customers, and develop sustainable competitive advantage in the marketplace (Leung, Law, Van Hoof and Buhalis, 2013).
Social media is becoming a significant driver of business performance in the contemporary society. Social media has become a powerful tool eliminating the traditional marketing models that are costly and only entail one-way communication. The blurring of the line between organizations and consumers implies that firms have an opportunity to engage directly and frequently with consumers, allowing for interactive conversations at a relatively low investment. With majority of current and potential customers being online, the failure of hotel industries to exploit the potential of social media networks could have detrimental implications for the brand performance. Hotels and the entire hospitality industry is highly customer-centered and the value arises in constant engagement and provision of personal experience, that can only be derived through social media interactions.
The main objective of this study is to investigate the impact of social media networks on business performance within the hospitality industry. While social media networks have been around for a very long time, the limited understanding of its various concepts (Kaplan and Haenlein, 2010), and its evolving nature has made it a very important agenda executives who are keen to know its implications for corporations and businesses (Edosomwan, Prakasan, Kouame, Watson and Seymour, 2011). Since social media networks is growing and becoming significantly important, it would be interesting to understand how it affects communication and relationships with guest, especially concerning pushing new information and promotional campaigns.
The scope of the study is limited to the impact of social media networks on businesses within the Australian hospitality industry. The study will focus on a hotel in Australia, which is a subsector of the hospitality industry. While there are several social media platforms, this study will only focus on the use of facebook and twitter in hotel industries.
Social media networks rely on the internet and web-based technologies to allow for the publishing of information in different formats, including audio, visual, and text on the web (Kaplan and Haenlein, 2010). Kaplan and Haenlein (2010) view social media as a set of internet applications and technologies that based on the web 2.0 principles and allow for active creation and interactive exchange of content generated by users. Social media networks introduce radical changes in the traditional communication models and the engagement of organizations with communities and customers. Social media differs from the traditional communication models in the sense that it provides opportunities for active interaction, engagement and participation of consumers, yet available literature fails to provide the distinction between the two models (Treem and Leonardi, 2013).
Although social medial networks are growing in importance and significance, the hospitality industry is yet to understand its effectiveness, especially in marketing and pushing for the brand objectives (Michaelidou, Siamagka and Christodoulides, 2011). Yet, there are abundant benefits of adopting and implementing social media networks in organizations. According to Leung, Bai and Stahura (2015), the social media experiences of hotel customers has a significant influence on their attitudes towards the company’s social media platforms and the brand, which affects their intentions to book into the hotel and share word of mouth on digital media. A recent study by the Deloitte Consumer Products Group indicates that 62% of respondents on an online survey were reading product reviews from other customers (Deloitte & Touche USA LLP, 2010). 82% said that the online product reviews influenced their purchase decisions (Deloitte & Touche USA LLP, 2010). While consumers use reviews for confirming their buying decisions, the reviews also have a significant influence with potential to change their decisions (Deloitte & Touche USA LLP, 2010). See figure 1 in the appendix for influence of online product reviews on purchase decisions.
Social media networks are valuable for businesses through attracting and gaining new customers (Chin, Evans and Choo 2015). With over 600 million people across the world using social media, it is possible for a business to reach these people and make an impression of its brand (Chin, Evans and Choo 2015). People who visit the various social media sites are able to view a company’s brand and its offerings, implying that social media is a powerful platform for promoting businesses, constructing marketing campaigns and positioning organizations for competitive advantage (Ngai, Tao and Moon, 2015). According to Roberts and Candi (2014), effective use of social media enables businesses to reach more people, conduct research on consumer behavior, increase brand visibility and awareness among target audiences.
Moreover, social media is assuming a significant portion of the marketing budget due to its contribution to brand management (Jones, Borgman and Ulusoy, 2015). Online presence allows current and potential customers to interact with the brand, creating brand familiarity, allowing customers to be brand ambassadors through positive reviews, sharing and positive word of mouth with multiple value for brand reputation (Jones, Borgman and Ulusoy, 2015). Research evidence suggests that global companies adopt at least one form of social media platform (Burson-Masteller, 2010). In fact, the study showed that at least 79% of 100 companies in Fortune Global 500 index adopt 1 or more social media sites ranging from twitter, YouTube, Facebook or blogs (Burson-Masteller, 2010). See figure 2 in the appendix for the use of social media sites in global firms.
Available research shows that twitter is the most active social media platform for the Fortune Global 500 firms who value the importance social media engagement, with 65% of the companies using twitter, followed by facebook at 54% and YouTube at 50% (Burson-Masteller, 2010). According to Burson-Masteller (2010), many (82%) organizations had tweeted in one week with the volume of 27 tweets each. See figure 3 for the frequency and volume of social media engagement in organizations.
Despite the benefits of frequent and sustained engagement on social media, a study conducted in Hong Kong hotels industry suggests that they have poor performance in utilizing social media to engage and learn about their customers (Chan and Guillet, 2011). Moreover, due to limited studies on the concept, hotels lack frameworks and models for harnessing their presence on social medial platforms for competitive advantage (Gilbert, Powell-Perry and Widijoso, 1999). If hotels are not using any of the social media platforms then they are missing opportunities to engage and develop relationships with digital communities. According to Kim, Lim and Brymer (2015) online reviews, specifically overall ratings and response to negative comments are the most significant predictors higher performance for hotels.
There is a significant increase in the hype and importance for adoption of social media networks in business marketing strategies. Unfortunately, hotels are still struggling to cope with the changing technological landscape and harnessing the value of social media networks. Social media is a relatively young concept, which is growing evolving on a daily basis and the challenge faced by many hotels is ensuring effective engagement of potential customers and guests, leading them to come to the hotels and share their experiences on social media (Russell, 2010). This study is appropriate because it will address the gaps identified in the literature review about the adoption of social media marketing in the hospitality and hotel industry, contributing to research on the impact of social medial for hotels in Australia and effectiveness of the various social media tools in creating competitive advantage for the hotels.
The literature on the adoption, effectiveness and impact of social media networks on hotel industries in Australia is significantly lacking (Michaelidou, Siamagka and Christodoulides, 2011). While many studies acknowledge the difference between traditional marketing and digital marketing, very few have investigated the salient differences and their implications for the modern hotel industries (Treem and Leonardi, 2013). According to Gilbert, Powell-Perry and Widijoso (1999) there is a general lack of understanding on the models and frameworks that hotels can use to bridge between web presence and connectivity and harnessing value of social media for competitive advantage.
H1: There is a significant impact between adoption of social media networks and performance of hotel businesses
H2: There is an association between presence on social media platforms and achievements of brand objectives in the hotel business
H3: There is a significant influence of social medial experiences on the booking intentions of guests in the hotel industry
Research design and methodology
The study will employ a quantitative research approach to determine the impact of social medial networks on the performance of hotels in Australia. The quantitative research approach is suitable when collecting and analyzing information to understand a certain phenomenon. In quantitative studies, the researcher determines what they want to study, develops and asks very specific questions to generate quantifiable data from the respondents and uses statistical methods to analyze the data collected.
The study will use the exploratory research design to explore the impact of social media networks on the performance of hotels. Exploratory research is suitable for business research for marketing purposes because it generates insights and ideas about the phenomenon under investigation. The researcher will use exploratory research design in the initial stages of the investigation define and attain clarity of the research problem. Exploratory research will enable the research to understand the social media network phenomenon and gain insights on its adoption and impact in the hotel business in Australia.
The study will survey consumers using social media and hotels that engage customers on social media platforms. Snowball sampling will be used conveniently and purposely to determine the research participants. The sample size will be N=50 (2 hotels and 25 consumers)
Data will be collected using carefully designed questionnaires to gather information from hotel managers and customers on their perceptions and the uses of social media. The study will employ an online survey with a questionnaire containing several multiple-choice questions that are closed-ended to allow for collection of quantitative data.
The data collected will be subjected to statistical analysis and percentages. The chi-square and SPPS software will be used to test hypothesis and the findings presented in descriptive frequency tables. Pie charts will also be used to present statistical data.
Reliability relates to the consistency of measurements or the ability of the same question to provide similar answers in different occasions. Validity refers to the ability of the instrument to measure what it purports to measure. Conducting the survey on the internet is likely to introduce validity and reliability issues, such as failure to answer all the questions and to complete them honestly and correctly.
While the use of online questionnaires and surveys is quicker, it results into less detailed data. The questionnaire will likely exclude people with no internet access, mobile phones or computers. The validity of the data collected through an online survey is questionable since respondents might give incomplete and less detailed responses. Due to the limited time and resources, it will only be possible to collect and analyze data from a small sample size, further limiting the reliability and generalization of the findings. The study will be limited to a hotel in Australia to get detailed insights on the local hospitality industry and only two tools of social media networks, namely twitter and facebook will be investigated. Future studies may expand the scope of the investigation to other cities and countries, increase the sample size and explore all the tools of social media network.
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Conclusion
This study will investigate the impact of social media in hotels in Australia. The aim is to explore how hotels use social media networks and the influence of this strategy on consumers and performance of the organizations. This study will add to the body of knowledge around the differences between social media and traditional forms of marketing and the influence this has on ability of the hotels to attain brand objectives and competitiveness.
References
Ang, L., 2011. Community relationship management and social media. Journal of Database Marketing & Customer Strategy Management, 18(1), pp.31-38.
Burson-Marsteller. (2010, February 02). Burson-Marsteller fortune global 100 social media study. Retrieved from https://www.bursonmarsteller.com/Innovation_and_insights/blogs_and_podcasts/BM_Blog/Lists/Posts/Post.aspx?ID=160
Chan, N.L. and Guillet, B.D., 2011. Investigation of social media marketing: how does the hotel industry in Hong Kong perform in marketing on social media websites?. Journal of Travel & Tourism Marketing, 28(4), pp.345-368.
Chin, C.P.Y., Evans, N. and Choo, K.K.R., 2015. Exploring factors influencing the use of enterprise social networks in multinational professional service firms. Journal of Organizational Computing and Electronic Commerce, 25(3), pp.289-315.
Deloitte & Touche USA LLP. (2010, August). Most Consumers read and rely on online reviews; companies must adjust. Retrieved from https://www.marketingcharts.com/interactive/most-consumers-read-and-rely-ononline-reviews-companies-must-adjust-2234/deloitte-consumer-review-readers-bygenerationjpg/
Edosomwan, S., Prakasan, S.K., Kouame, D., Watson, J. and Seymour, T., 2011. The history of social media and its impact on business. Journal of Applied Management and entrepreneurship, 16(3), p.79.
Gilbert, D.C., Powell-Perry, J. and Widijoso, S., 1999. Approaches by hotels to the use of the Internet as a relationship marketing tool. Journal of Marketing Practice: Applied Marketing Science, 5(1), pp.21-38.
Hanafizadeh, P., Hanafizadeh, M.R. and Khodabakhshi, M., 2010. E-business deployment in Iranian IT firms: an empirical research on recommendations. International Journal of Value Chain Management, 4(1-2), pp.49-67.
Jones, N., Borgman, R. and Ulusoy, E., 2015. Impact of social media on small businesses. Journal of Small Business and Enterprise Development, 22(4), pp.611-632.
Jones, N., Borgman, R. and Ulusoy, E., 2015. Impact of social media on small businesses. Journal of Small Business and Enterprise Development, 22(4), pp.611-632.
Kaplan, A.M. and Haenlein, M., 2010. Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 53(1), pp.59-68.
Kim, W.G., Lim, H. and Brymer, R.A., 2015. The effectiveness of managing social media on hotel performance. International Journal of Hospitality Management, 44, pp.165-171.
Lanz, L.H., Fischhof, B.W. and Lee, R., 2010. How are hotels embracing social media in 2010. Examples of how to start engaging. New York: HVS Sales and Marketing Services.
Leung, D., Law, R., Van Hoof, H. and Buhalis, D., 2013. Social media in tourism and hospitality: A literature review. Journal of Travel & Tourism Marketing, 30(1-2), pp.3-22.
Leung, X.Y., Bai, B. and Stahura, K.A., 2015. The marketing effectiveness of social media in the hotel industry: A comparison of Facebook and Twitter. Journal of Hospitality & Tourism Research, 39(2), pp.147-169.
Michaelidou, N., Siamagka, N.T. and Christodoulides, G., 2011. Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands. Industrial marketing management, 40(7), pp.1153-1159.
Miller, K.D., Fabian, F. and Lin, S.J., 2009. Strategies for online communities. Strategic Management Journal, 30(3), pp.305-322.
Ngai, E.W., Tao, S.S. and Moon, K.K., 2015. Social media research: Theories, constructs, and conceptual frameworks. International Journal of Information Management, 35(1), pp.33-44.
Palmer, A. and Koenig-Lewis, N., 2009. An experiential, social network-based approach to direct marketing. Direct Marketing: An International Journal, 3(3), pp.162-176.
Roberts, D.L. and Candi, M., 2014. Leveraging social network sites in new product development: Opportunity or hype?. Journal of Product Innovation Management, 31(S1), pp.105-117.
Russell, J., 2010. Evaluate the Effectiveness of Social Media Marketing on Hotels. Hospitality Management Review Student Journal at Sheffield Hallam University, 1.
Treem, J.W. and Leonardi, P.M., 2013. Social media use in organizations: Exploring the affordances of visibility, editability, persistence, and association. Annals of the International Communication Association, 36(1), pp.143-189.
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