Thursday, November 8, 2012

Social Media and the Hospitality and Tourism Industry


The rapid advancement in technology and the internet’s prevalence in today’s world, consumers are becoming more and more knowledgeable about hospitality and tourism products and services because the amount of information and its accessibility.  Social media websites have become a popular tool among consumers in sharing personal experiences, comments, and opinions via the Internet.  The content of these social media websites are consumer-generated with the intent of educating others about products, brands, services and issues (Blackshaw).  According to Litvin, Goldsmith and Pan social media has transformed the way information is released and received via the internet; it has modified the concept of word-of-mouth creating what is known as electronic word-of-mouth.  Word-of-mouth is a concept of spreading information which greatly influences other consumers.  This is important because of the nature of hospitality products and services: severability, intangibility, perishability, high risks and competitive industry.  The industry is influenced based on the experiences of the consumers.  If consumers are finding more, new and improved ways of sharing experiences and information through social media then hospitality management must be aware and understand social media.

Social media affects both consumers and hospitality management.  For example, consumers now have fast access to update information, whether it is information about a hotel or restaurant or comments and reviews about the best tasting burger in town, consumer will be able to find the latest thoughts about anything.  Consumers looking for direction regarding experiences, i.e. restaurant experiences, hotel experiences, can search the Internet and generally be confident and trust other consumer’s opinions.  On the same hand, the concept above gives opportunities for hospitality management to improve service recovery by addressing negative comments or reviews on social media sites such as Tripadvisor, Yelp, Facebook, Twitter, Youtube.... Hospitality management has the ability to quickly respond to consumers, and service recovery with social media can lessen the influence or impact of negative comments and reviews.  Hospitality management can also use social media as a means to analyze current performance and consumer satisfaction, and make improvements or corrections accordingly within the company.  Hospitality management has the opportunity to use social media as a marketing tool, a communication to consumers of what the company has to offer, creating a more attractive image to consumers.

Hotels always speak to their guests about their stay experiences, but sometimes its too impolite for the guests to express what they were truly thinking.  If hotels engage more with their revivers, the number of negative comments may decreases.  Scott Baublitz, the Director of Sales at San Francisco Union Square, read the most recent reviews posted especially with the low ratings and decided what they needed to do to satisfy guests and raise their hotel profiles on Tripadvisor rankings.  As you can read on Tripadvisor, he wrote back apologizing to some of the recent negative reviews and addressed how they will follow up on the issue and finally thanked the guest for staying at Hilton.  

According to Role of Social Media in Online Trael Information Search the complexity of the Internet and social media has created some issues with the hospitality industry.  Since the content of social media is largely consumer-based, it can make it difficult to filter through all the information that is available for consumers.  Searching for information through the Internet has been greatly influenced by large search engines that limit search results to only include the most “popular” social media sites.  The top players in the social media scene are very well represented in large search engines like Google, while the much smaller social media sites are under-represented.  Consumers are not always presented a good representation of the opinions, thoughts and expressions of consumers because only the popular social media sites are represented well in the internet.  As mentioned above, hospitality management has looked at social media as an opportunity to improve their business strategy.  However, ethical concerns arise when employees are asked to pose as consumers on social media sites to post and share positive experiences and comments to improve or create a better company image.  On the same note, the same concept is applied toward handling competitors; employees are asked to post and share negative experiences and comments to damage their competitors’ image or reputation.  Companies use these tactics because the Internet and social media sites are not clearly regulated and restricted, thus companies find ways to abuse them without anyone truly knowing and without any real consequences.

12 comments:

  1. Social media sites have many benefits as well as its downfalls. It is good because it can reach virtually anybody in the world with internet access and its free! A major downfall is that it is unregulated and as you mentioned reputations can be tarnished by unethical behavior. Social media is very important to the hospitality and tourism industry because it makes traveling easier and more convenient because you can have information and details at your fingertips.

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  2. I agree with Pierre that social media sites can also have downfalls. It is important for those using these sites to make sure that they are doing so correctly and professionally. That being said, social media sites are a valuable tool, especially in hospitality. My grandparents work in the hotel business and looking at customer reviews online is an important part of creating a great customer experience. Have you, as a comsumer and a major on the topic, noticed the effects that these sites have had on you? Do these reviews effect your opinions of which place to stay at when planning a trip?

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    1. Oh yes, whenever I go out to eat, I always look up the restaurants on Yelp first and decide which one to eat. I normally read the reviews and see how many reviews are there which tells me how popular that place is as well as the ratings. Usually when I see three out of five stars, I would not want to eat at that place. So I think it's very important that service industry people do take advantage of social networks as nowadays consumers relied on those social networks tremendously.

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  3. The impact of social media to business is amazing. Every time when I plan a trip, I always check out customer’s rating and comments about a hotel first; or post my destination on Face book and ask me friends’ recommendation for hotels. Social Medias do impact the way companies do business and it is not just in hospitality industry; but may be hospitality industry has bigger influence by social media. This actually is a win-win situation for hospitality industry and for their customers. Because consumers can get better choice for services they need and have platforms to express their opinions about a service and hotels can improve their service by taking care of their customer’s reviews.

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