Social media has emerged as a power international promotional tool of the global tourism industry. This is due to the global reach which leading social media websites like Youtube, Facebook and Instagram enjoy. The international hotels use these platforms to attract affluent customers from all over the world as per their STP strategies. They also promote the local festivals of the specific host markets to exhibit their relatedness to these markets. The tourism market owing to its global nature and immense revenue generation comes under the influences of the macroeconomic conditions in politics, economic, technological, societal, environmental and legal. The global hospitality firms reap advantages in the international market to promote their services on the digital platform to attract huge customer bases to generate immense revenue. Similarly, they reel under global challenges like terrorism. The purpose of case study is to explore the use of social media in the hospitality sector taking into account the economy of Britain. The hospitality firm considered for the study is the Durham Marriott Hotel Royal County, the Durham arm of the Marriott International. The case study would delve into the festival of light in Britain, Lumiere and the response of the international hotel to it. The paper is divided into three broad sections, namely, the literature review section, the case study and the concluding section. The literature review section would first delve into the social media use for promotion with reference to the international tourism industry. Then next section of the literature review would study how international hospitality chains align their social media promotions with their segmentation, targeting and positioning strategies. These two section would make it clear that STP and social media promotions in the international hotels are dependent heavily on market conditions. This would make a PESTLE analysis of Britain pertinent applying the analysis to social media usage. The literature would heavily draw facts from secondary sources like official websites of organizations ,statistical websites like Bloomberg and newspaper articles. Apart from these sources, the researcher has conducted an exhaustive research of several journals, books and articles by different authors. The second section, the case study section introduces Durham Lumiere and how the Durham Marriott Hotel Royal County promote it on social media. The final section contains recommendations for the hotel to strengthen its social media promotions.
Social media/mobile technology:
Social media and development of mobile technology enables international hotel chains and destinations promote their festivals to attract more visitors including tourist. Inversini and Masiero, (2014) mention that social media provides a strong platform for the hotel companies to promote their goods and services. The international hotel chains like the Marriott International today provide a range of services like luxurious rooms, spa, fitness training and golf courses. This means they have to pump immense investments into these facilities. Buhalis and Mamalakis (2015) adds to their discussion and mention that promotion enables these hotel groups to attract immense number of customers and generate huge revenue. Schroeder and Pennington-Gray (2015) further mentions that promotion of services on the social media has become so important method to gain high returns on investments. This rising importance of social media in earning high ROI has made it an important component of the apex management decision making strategy. The apex management bodies of these international hotel groups promote their festivals and events aggressively on the social media websites to attract tourists. Hur, et al. (2017) state that this promotion of services and facilities by international hotel groups is dependent on appropriate segmentation, targeting and positioning in the market.
Segmentation:
Dolnicar et al.(2014) mentions that hotel groups segment their market on several grounds like geography, social status and life style. The international groups of hotels target the middle and the upper class customers who have sufficient disposable income to afford premium accommodation and fooding services. The latest trend in the tourism industry is that hotel groups today is to expose the customers to the authentic cuisine and artefacts of the place. The Durham Marriott Hotel Royal County services authentic English cuisine to enhance the experience of the international tourists (marriott.com 2018). International hotels today host conventions, corporate events and cultural events for these rich segments of customers which enable them to earn huge revenue. The international hotels also provide facilities for conventions and conferences to the multinational companies and wedding and other family function facilities to the upper class domestic customers. Social media allows them to get access to these appropriate customer segments which they serve to generate revenue.
Figure 1. Picture showing conference facility at Marriott Hotel Royal County
(Source: marriott.com 2018)
Target:
The segmentation strategy of the tourism industry today depend on targeting appropriate customer segments to huge revenue to sustain in the market. The target customer base of the international hotel groups generally consist of the upper class customers. Claveria and Poluzzi (2017) mention that these international hotels offer products like accommodations, food, conference facilities and private event facilities. They apply appropriate pricing strategies to attract the upper class corporate and domestic customers which allow them to earn huge revenue. They advertise these services on the social media which enables them to attract appropriate customers. These customers avail services from travel and tourism companies to attend the events at these hotels. Thus, one can summarise that appropriate targeting of customers using the social media has led to revenue generation in not only the international hotel chains but also in the entire tourism industry (Prayag and Hosany 2014).
Positioning:
The international hotel groups position themselves strategically in the tourism market following their segmentation strategies which once again reflects on their social media pages. As Díaz-Pérez and Bethencourt-Cejas (2015) point out that appropriate positioning in the market is very important to earn huge revenue by catering to appropriate customer segments. As discussed above, the appropriate customer segments of the international hotel groups consist of multinational companies which can afford the state of art conference facilities and the upper class individual customer who can afford the wedding and private events facilities of the hotels. Thus, the international hotels position themselves as the providers of premium accommodation, corporate and private event facilities. They advertise their high-end packages on the social media websites to attract these two rich customer segments. Litvin, Yen and Uysal (2016) takes the discussion to the next level by stating that the latest trend which is generating a huge revenue in the tourism industry is destination tourism. These corporate and private event management facilities provided by international hotels correspond to the rising market of destination tourism. The offer destination corporate conference facilities to MNCs around world which enhances the brand value of the latter. The corporate and the individual customers publish the news about the events held at these hotels on their social media pages which in turn enable the hotels to attract more premium customers. This appropriate positioning using social media enables the hotels to generate huge revenue by creating high level customer satisfaction. Claveria and Poluzzi (2017) adds to the discussion and mention that this customer centric positioning has enabled the hotels to gain references from their existing customers which paves way for their future generation. The combined impact of appropriate positioning along with appropriate use of social media and high level of satisfaction among appropriate customer segments has ensured revenue generation not only in the international hotels but also tourism industry as a whole.
The above discussion makes it clear that the tourism industry particularly the multinational hotels today depend on social media presence to a great extent for revenue generation and sustenance. One can point out this growing importance of social media is brings the entire tourism industry under the macroeconomic factors like level of technological advancement in a particular country and economic development. The PESTLE analysis would explore the relationship between mobile technology and social media in context of tourism with refers to the United Kingdom.
Political factors play very significant roles in application of social media to generate business by tourism organisations. Both technological development in mobile technology and tourism are dependent on the support of the government. Hjalager (2015) point out that development in mobile communication technology requires immense investments and expertise. He further points out that innovation is one of the strongest drivers of the developments in the tourism industry. Britain is a politically stable country having strong bilateral relationships with technologically advanced markets of Europe, North America and the emerging markets of Asia. The bilateral political relationships with these markets are important because they are home to the world’s leading information and communication technology companies like Samsung (Asia) and Apple (the US). American companies like Facebook and Youtube provide the social media platforms the tourism these companies use to promote their services. Thus, the international hotel chains can partner with the companies from these markets by taking advantage of Britain’s political tie-ups with them (Souto 2015). The political tie-ups of Britain enable the tourism companies promote their services on the social media to get access to their target customers from these markets, thus, generating revenue from them.
The second political impact on the tourism and communication technology is taxation policies. The government of Britain of provides tax cuts to companies including the ones involved in tourism and communication technology (bloombergquint.com 2018). These political decisions of the government of Britain acts as a driving force for the companies involved in these two sectors. Thus, government policies have great bearing on the promotion of tourism packages using mobile technology by international hotels and their consequent revenue generation (gov.uk 2018). Brondoni (2016) however contradicts these optimistic political factors and points out to the greatest political threat under which countries like Britain reel, terrorism. Terrorist blasts in the tube stations in London has shown the devastating impact terrorism can have in Britain. It has also raised questions about the level of security the Britain security forces can give to the common people including the large number of foreign tourists (theguardian.com 2018).
The economic conditions of Britain has contributed to application of social media in the tourism industry in Britain. Buhalis and Mamalakis (2015) point out that using social media to promote products often require the hospitality companies allocate immense amount of money. This presence in social media platforms have emerged as product differentiation strategies by the hospitality companies. Thus, they invest immense amount of money towards these promotional strategies. Britain is an economically developed nation and has a developed stock market. The country allows the tourism companies float shares in the market and generate immense capital which they can in turn allocate towards increasing their presence on the social media. Parmigiani and Rivera-Santos (2015) mentions that the economy of Britain provides the tourism and technology companies with a huge network of financial institutions. These financial institutions promote their businesses in two ways. First, these institutions enable the companies involved in hospitality invest in both domestic and foreign securities. This enables them to diversify the total investments into different markets and earn high revenue. Secondly, the network of financial institutions provide these companies with facilities like foreign exchange to support their global transactions.
Figure 2. 1 year stock chart of Marriott International
(Source: nasdaq.com 2018)
The second economic factor which impacts the tourism companies like Durham Marriott Hotel Royal County is per capita income. The figure below shows that the gross domestic income of the United Kingdom shows an uneven trend which is mostly towards downward direction. This falling per capita income means that less amount of people would be ale afford the premium services of the international hotels like Marriott. This in turn means Marriott would lose out on its revenue base if it restricts itself within the UK. Claveria and Poluzzi (2017) state that hotel companies require to invest immense amount of capital to serve their premium customers. Moreover, creating and maintaining strong social media presence requires immense investment as well. One can infer from this discussion that the hotel companies like Marriott require to attract tourists from other countries to counteract the loss. This requires the company to promote its services on the social media to attract customers from other countries to diversify the profitability loss it would suffer in Britain.
Figure 3. GDP of Britain
(Source: tradingeconomics.com 2018)
The third economic factor which impacts application of mobile technology in the tourism sector in Britain is availability of labour. He et al. (2015) mentions that companies require to carry out continuous innovations regarding their social media promotions. The graph below shows that number of UK and foreign nationals employed in the UK has increased. This means the market has evolved to provide more human resources to the industries including tourism.
Figure 4. Annual change in number employed, UK nationals and foreign nationals, by quarter, 1998-2013
(Source: assets.publishing.service.gov.uk 2018)
The country also has a wide network of hospitality training institutes which provide the tourism industry with skilled labour. Moreover, the presence of technical training bodies enable the communication companies with technical experts who can guide the tourism companies on the digital promotional strategies. This availability of skilled labour in the British economy has led to flourishing of the premium hospitality companies from resident of Britain and of foreign origin promote their services aggressively on the social media. This aggressive use of social media has enabled them to earn immense revenue. This generation of immense revenue has led to flourish of the entire tourism sector of Britain as a whole (Oparaocha 2015). Di Cataldo (2017) contradicts Oparaocha (2015) and states that the economic strength of Britain is largely due to the country’s access to the resources and market of the European Union. He points out that post Brexit, Britain has to pay higher price to utilise talents from Europe. This would catapult the expenditure of tourism companies which pool technological experts from other European countries. Thus, one can infer from the discussion that Britain is economically strong but Brexit would have strong impact on its economic stability.
The fourth economic factor which is very pertinent in case of both tourism and social media applications is international currency rates. As pointed out, the use of social media to promote premium services and events require the hospitality companies in Britain depend on IT companies which are largely American. The above discussion clearly points out that the tourism sector in Britain is dependent on exchange rates in terms two international currencies, namely, Euro and USD. The two 5 year graphs show that the power of Great British Pound has weakened compared to both USD and Euro. This means that the international hotels in Britain Durham Marriott Hotel Royal County would have to pay higher amount to use the social networking portals of leading American companies like Youtube. The opinion of Di Cataldo (2017) regarding showing down of the British economy post Brexit has been echoed by international dailies like The Independent (independent.co.uk 2018). The economy of the United Kingdom has already started showing symptoms of economic slowdown which is more evident from the weakening of GBP against international currencies like USD and EU.
Figure 5. A five year chart showing GBP:USD value
(Source: bloomberg.com 2018)
Figure 6. A five graph showing GBP:EUR
(Source: bloomberg.com 2018)
The above analysis shows the tourism and hospitality sector of Britain is going to face serious threat due to these hostile economic factors. The tourism companies in Britain require to invest immense of money towards their social media presence. They source significant portions of the capital for the purpose by floating shares. Brexit has already started having dire impact on the share market which would mean that the British tourism companies would generate less capital which would in turn their expenditure towards social media presence (huffingtonpost.com 2018). They would be required to incur higher expenditure to acquire resources from foreign markets like the USA which would shoot up their cost of operations several times.
The next economic threat which the tourism sector in Britain faces owing to its dependence on banking systems and the multitude of financial transactions is money laundering. Serhan, Mikhael and El Warrak (2016) mention that the illegal groups use the banking network to put back their illegally earned money into the economy. The international hospitality companies become prey to these money laundering groups owing to their global financial transactions.
The social factors are important drivers of social media usage by hospitality organisations in Britain. The economy of Britain is highly developed with high per capita income which means more people have access to expensive electronic devices like tablets and smart phones. The country is home to some of the biggest information and communication technology giants like Vodafone (vodafone.com 2018). According to Lanz and Carmichael (2015) these factors have led to growing preference of customers preferring to book hotels on the digital platforms. This trend has led to the hotel companies enter and expand their presence on the digital platform. This increasing presence on the digital platform is more appropriate for the hospitality industry since it is dependent on international customer bases from to generate revenue.
Inversini and Masiero (2014) mention that technological advancement in both the fields of information and communication technology and tourism has led to increased use of social media to promote services by hospitality organisations. Britain is a technologically advanced nation which is home to top ICT companies like Talk Talk (talktalkgroup.com 2018). These companies provide easy action to mobile communication which the tourism companies use to advertise their tourist packages on the social networking sites like Youtube. These factors have promoted to increased promotion by multinational hospitality companies of their premium services to attract upper class tourism all over the world.
Dre?ewski, Sepielak and Filipkowski (2015) contradicts these technological advantageous factors promoting social media presence of hotel companies and point out the greatest threat which the social media presence has brought upon the industry-data theft. They mention that terrorist groups today use social media platforms to break into data bases of multinational companies from diverse industries including hospitality industry. Top international hotel chains including different branches of Marriot International have already fallen preys to these data breaches and have suffered huge losses (hotelnewsnow.com 2018). One can synthesise the looming terrorist threats over Britain, the wide spread money laundering and data breaches in top hotel properties to infer that data breach is undoubtedly a big technological threat to the hotel industry.
Usage of social media to promote services by international hospitality companies would require compliance to laws from diverse areas like hospitality and information technology. For example, while employing the human resources in the hotel organisations have to comply with the National Minimum Wage rate to pay their employees (gov.uk 2018). The information technology laws in force are binding on the IT companies owning the social media platforms and the hotel companies using them. The hotel companies also have to comply with laws pertaining to other business areas like taxation and labour laws in Britain.
The usage of social media platforms by hotel companies come under several environmental factors due to the heavy footprints both the IT and hotel industries have on the environment. Lee, and Lee (2015) mention sharing of information between hotel companies and customers result in release of immense amount radiation. The radiations from mobile towers have adverse impacts on human beings, other animals and trees. The hotel companies also release immense amount of waste products which have detrimental effect on the environment (Pirani and Arafat 2014).
Methodology:
The methodology would consist of data collection from a variety of secondary sources of information like the internet websites, articles and journals. These vast array of information sources has helped the researcher to gather sizeable information about use of social networking sites in promotion of Durham City Lumiere by Marriott Hotel Royal County.
About Durham Lumiere:
Durham Lumiere is the festival light which is celebrated in November every two years. The festival is free to attend and is held in Derry and London other than Durham. Over 240000 visitors attend the festival for over 4 nights to view over 29 separate light works depicting myriads of things some of which are simple while others are very complex (lumiere-festival.com 2018) (Appendix). The festival is commissioned by the Durham County Council and is sponsored by Artichoke Project (durham.gov.uk 2018). The festival attracts a large number of tourists which has attracted participation from international hotels like the Durham Marriott Hotel Royal County, the arm of the international hotel chain, the Marriott International (marriott.com. 2018).
The social media strategy of Durham Marriott Hotel Royal County is aligned to attract more tourists during the Lumiere festival. The international hotel in order to attract tourists arrange for special food and accommodation packages. The restaurants like Star Bucks within the Marriott premises remain open till 11.30 pm. The international hotel also promote its Lumiere packages on social media sites like Facebook and Youtube (Lanz and Carmichael 2015).
Online Evaluation of the social media strategy:
One can evaluate that the promotional strategy of Lumiere by Durham Marriott Hotel Royal County has dual advantages. The promotion of Lumiere on the official website of the Durham Marriott Hotel Royal County enable the hotel promote the festival all over the world. It helps the festival to attract more international visitors which in turn generates more sales for the hotel. Thus, the promotion boosts the revenue generation of both the festival and the hotel (marriott.com. 2018). The secondary sources shows that the new social media strategy recommended below would increase the number of tourists both for Durham and the hotel.
The second aspect which one can point out upon analysing the social media strategy of Durham Marriott Hotel Royal County is that it integrates the global strategies of the hotel chain with its local strategies (Liu et al. 2014). The Marriott International is an American chain having its branches of premium hotels spread all over the world. The promotion of Lumiere actually is a part of its localisation strategy and exhibits the power of the international hotel group of integrating its international and local business strategies. This capability in fact boosts its brand value as a transnational company with a high level of cultural intelligent quotient.
One can point out on evaluation of the promotional strategies of Durham Marriott Hotel Royal County that the hotel integrates its promotional strategy with its stakeholders like the Durham Council. This is evident from the availability of the details of the international hotel on the official site of the Durham Council. This new trend of integrated promotion leads to more aggressive marketing of the city, the Lumiere festival and the international hotel.
Figure 7. Durham Marriott Hotel Royal County on the official website of the Durham Council
(Source: durham.gov.uk 2018)
Figure 8. Comparison between the US and the UK on Hofstede’s tool
(Source: hofstede-insights.com 2018)
The cultural comparison between the United Kingdom and the United States shows that the two countries are culturally very close. One can also evaluate that Marriott’s promotion of Lumiere exemplifies the cultural exchange between the US and the UK. Thus, the promotion of Lumiere by Durham Marriott Hotel Royal County reflects strong political and economic relationship Britain shares with other nations discussed in the PESTEL analysis above.
The researcher needs to acquire secondary data about Durham regarding its market conditions like culture and demography. The same would be used to make the social media strategy.
One can conclude from the above discussion that macroeconomic conditions have deep influences on the tourism and cultural industry. Strong promotion of festivals and events on social media by international hotel chains to attract more tourists are dependent on the market factors. The following are the findings from the discussion above:
Appropriate segmentation, targeting and positioning of the market is very crucial for international hotel chains. The international hotel chains like the Durham Marriott Hotel Royal County use the social media to promote cultural events like Lumiere. This promotion on social media allow them to target upper class tourists from all over the world. The social media promotions have become empirical to these hotels to position themselves strategically in the market to attract upper class customers. Thus, social media platforms like Facebook and Instagram facilitate high revenue generation in these international hotels.
The promotion of events by the international hotel/hospitality chains like Durham Marriott Hotel Royal County on the social media platform requires immense amount of investment. This brings these hotel chains under influence of economic factors like rate of economic development and the strength of capital market in a particular host country (Britain in this case). The social factors like increasing preferences among customers to book hotels online taking the advantage of favourable technological advancements have also boosted the business of the international hotels. However, they continuously reel under threats like terrorism, money laundering and data theft.
The promotion of Lumiere Durham on the social media pages of the Durham Marriott Hotel Royal County is a form of strong integrated marketing strategy. The international hotel promotes Lumiere Durham which is commissioned by the Durham Council while the latter gives details of the former on its official website, thus promoting it. This integrated and mutual promotion on the social media platform enable more aggressive marketing and more revenue generation.
The following are the recommendations which can be proposed to the management of the Durham Marriott Hotel Royal County in the light of the above findings:
The social media strategy of the Durham Marriott Hotel Royal County should reflect the multicultural identity of the United Kingdom. The international hotel restricts its social media promotions to British festivals like Christmas but does not promote any Asian festival unlike its Dubai counterpart. The Durham Marriott Hotel Royal County should also promote Asian and American festivals on social media platforms to attract tourists during these festivals as well to generate more revenue. Besides promoting its own business, it would also promote multicultural aspect of Durham, thus opening avenues for future business support from the Durham Council.
The international hotel chain should use social media websites like Facebook and Istagram more aggressively. The social media pages of the international contains more detail about its rooms and facilities but very less information about festivals or culture of Durham. The international hotel must make more aggressive use of its social media pages to promote the culture and festivals of Durham. This would enable it to attract more international tourists which would give it more opportunity to serve these tourists and generate more revenue. Promoting local festivals would in fact boost the multicultural image of the hotel enhancing its goodwill. This would in turn allow it to attract more investors and employees thus generating more capital and productivity respectively. Thus, the ultimate outcome of the promotion of local festivals on social media websites would be higher competitive advantage for the Durham Marriott Hotel Royal County.
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