Effects of Online Marketing

CARDIFF METROPOLITAN UNIVERSITY
A Case Study on
Effects of Online Marketing (E-mail and Social Media) in the Hotel

Sector at London Heathrow
MBA (Advanced Entry) in Business Administration

October 2011
Student: Upendra Raj Poudel

ID: 20015540
Supervisor: Ian Cater

Effects of Online Marketing (E-mail Marketing and Social Media) in the Hotel Sector at London Heathrow
Acknowledgment:
This work has great support and contribution from numerous people and I would like to
recognise them. First of all, I would like to give thanks to the program leader, management
team and lecturers of Cardiff Metropolitan University to providing me a chance to join the
Advance Entry MBA program.
In particular, I thank my parents for their great financial and moral support to continue my
further study in United Kingdom. Especially, my gratitude goes to my supervisor Mr. Ian
Cater for guiding and feeding me back throughout the entire research study. I am grateful to
my friends Devaki Thapa, Ravi Chhetri and my cousin brother Mr. Prakash Gautam for
supporting and encouraging me throughout this research study.
Finally, I would like to thank all the participants and respondents of the research study,
without their kind support and time I would not be able to find the exact result and figure for
this research study.
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Abstract:
At present, the world is globalised and everything in the market is promoted through the
internet and online. This research study was initiated to explore how effective is online
marketing and its strategy in the hotel sector. The purpose of the research was to find out
the effects of online marketing (E-mail and Social Media) in the hotel sector at London
Heathrow. Through the entire primary research conducted it was identified that the more
than 50% of the hotel booking depends online and 77% of the hotel users prefer the
internet to find the best deal and make a reservation with hotels. Moreover it was
identified that almost all of the hotels at London Heathrow use the latest online marketing
tools including; E-mail campaigns, pay per click, website development and social media to
promote and reach to the potential customers globally. The research study was also able
to find that most of the hotel users prefer checking the reviews and comments on Trip
Advisor and other booking agencies websites before making their reservation with the
hotels. Further, it was found that rather than online marketing there is no other option to
promote and market the business as 77% of the customers have willingness to receive
promotional e-mails from the hotel and more than 95% of customers use social media
including Facebook, twitter, Google+ and Trip Advisor. On the other hand most of the
hotels at London Heathrow were found to depend on third party booking agencies that
include booking.com, laterooms and Expedia etc. However, these hotels also use their
own corporate websites and are involved on Social Media to promote their service to
customers. Thus, the overall finding of the study emphasised that online marketing has a
huge impact on the present globalised market of hotel sector in London Heathrow.
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Table of Contents
Acknowledgement 2
Abstract 3
Chapter 1: Introduction
1.1 General Background 6
1.2 Context of the Research 7
1.3 Definition of Terms
1.3.1 Online Marketing 7-8
1.3.1.1 E-mail Marketing 8
1.3.1.2 Social Media 8
1.4 Focus of the Research
1.4.1 Aims and Objectives 9
1.4.2 Research Questions 9
1.5 Rationale for Research 10
Chapter 2: Literature Review
2.1 Introduction 11-15
2.2 Online Marketing Methods and Strategies 16-18
2.2.1 E-mail Marketing 18-20
2.2.2 Social Media 20-23
2.3 Summary 23
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Chapter 3: Research Methodology
3.1 Introduction 24
3.2 Research Methodology 24-27
3.2.1 Research Philosophy 25-26
3.2.2 Research Strategies 26
3.2.3 Time Horizon 27
3.3 Data Analysis Technique 27
3.3.1 Data Collection 27
3.4 Target Population and Sample 27-28
3.5 Accuracy in Data Collection 28
3.6 Limitations and Further Research 28
3.7 Summary 29
Chapter 4: Finding and Analysis
4.1 Need of E-mail marketing and Social Media 30-32
4.2 Identifying the needs of customers 33-34
4.3 Methods of Online Marketing 34-36
4.4 Benefits of Online Marketing 36-38
4.5 Challenges of Online Marketing 38-40
4.6 Effects of Social Media 40-41
4.7 Effects of Trip Advisor 42-44
Chapter 5: Conclusion 45-48
Chapter 6: Limitations and Recommendations 49
References 50-55
Appendix 56- 93
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CHAPTER 1- INTRODUCTION
1.1 General Background
The use of the internet has become a part of human everyday life with huge affects on all
kind of businesses, strategies and communication (Swanepoel 2007). He adds that the
development of commercial use of the internet represents the chronological developments
on business strategies of the previous centuries. According to Duermyer (2011) the
changes behind online business and E-commerce is due to the development on web and
internet, people participation on internet has rose dramatically and they are spending lots of
time on internet to communicate via different social medias, play games, shopping, listen
music and videos.
The internet marketing and social media services are being popular among the customers
and the success of the companies depends on how they are using and online marketing
and their advantage (Botha et al 2005). He adds that the effects of the online marketing can
be measured depending on the techniques and strategies companies are using via
websites, social media, banner ads and blogging.
Undoubtedly, the online marketing concept is required to attract the customers by the entire
online marketing platforms used by the companies to promote the services (Harris 2008).
He states that only the development of websites, banners and social media platform is not
sufficient to generate the revenue from the online marketing tools.
Thus, the purpose of this study is to fill the gap by establishing a link between traditional
marketing and online marketing used in the hotel sector. This study can be used as a
reference by the hoteliers and can find the possible opportunities and strategies on E-mail
marketing and social media services for the proper utilization of E-mail marketing and Social
Media.
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1.2 Context of the Research

The research is based on the hotel business at London Heathrow. The hospitality industry
and hotel business in London Heathrow are using different kind of online marketing tools
and social media services to update them in the fast growing market place (Bailey 2011).
According to Leboff (2011) high competition on online marketing forced hoteliers to adopt
various marketing strategy to become success and engage with the customers without
trying to change the behaviour of customers. He highlights that most of the companies are
being successful by creating interesting advertisement and publishing it through YouTube,
Facebook, Twitter, Google+ and Blogs.
1.3 Definition of Terms

1.3.1 Online Marketing
According to Gay et al (2007) online marketing is a process of developing relations with the
potential customers and clients to update them about the services, products and activities of
the companies. The online marketing commonly known as internet marketing, web
marketing or e-mail marketing has unique features though has few similarities with offline
marketing; it has few strategies on Search Engine Optimization (SEO), Affiliation Marketing,
Pay per Click and Social Media Services (Harwood 2009).
Many writers have put forward and explored their view in the definition of online marketing
as below:
“Online marketing is placing your business or product on the internet for

millions of users to access so that you can turn your website into a strong tool
to maximize your sales and business potential”.
(Lindsay, 2011, p.5)
“There are two types of online marketing: on the one hand the passive online
marketing which is about a website for itself. On the other hand there is the
active online marketing which tries to reach potential buyers on the internet.
This could be realised inter alia with newsletter, search engine marketing,
branding and other tools”.
(Adler, 2010, p.4)
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According to Meyerson (2005) the companies can focus on the areas as according to the
demand of the customers by using the right online marketing tools and strategies to
generate the revenue and grow the business.
However, the 21st century is considered as a big platform for development and progress.
The entire success of online marketing depends on public relation, strategy, tools and
analysis (Baggott and Sales 2007).
1.3.1.1 E-Mail Marketing

According to Rana (2008) E-mail marketing is a wonderful and perfect marketing method of
direct marketing. He states that E-mail marketing is economy, quick and efficient if the
company can make a proper plan with interesting and relevant topics that attract the
customers. E-mail is considered as the best and only medium to develop long term and
good relations with the customers (Patricelli and Miltutinovic 2002).
According to Roberts et al (2001) the increasing numbers of internet and e-mail users have
created lots of opportunity on marketing and sales of the companies. However they have
highlighted the rule of E-mail marketing to prevent complaints, If you’re going to spend
promotional e-mail messages to your customers, ask them if it’s OK. In every message,
give them a reminder that they can opt out of receiving future e-mail marketing messages at
any time, and give them an easy way to do so-usually by clicking on Reply and typing
Unsubscribe or Remove. 
1.3.1.2 Social Media

The forums and networks build between the people to communicate and interact is known
as Social Media (Luther 2011). He highlights that without any initiation and objectives on
marketing they are the most essential and important tools to be used by the company to
promote their services to the customers and people. Zarrella (2010) highlights that different
companies are using various social media network to get in touch with the customers and
for example IBM has over 100 different social networks that includes blogs, twitter accounts
and videos websites for the development and promotion of the business. The community of
the social media users is huge whether or not they involve within the business link provided
inside the social media forums.
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1.4 Focus of the Research

1.4.1 Aims and Objectives
There is a huge opportunity in the field of online marketing and social media however; there
is a gap on developing appropriate tools and techniques by the managers of the Hotel
Business at London Heathrow. The research study will highlights and focus on finding the
effects of online marketing including E-mail marketing and Social Media that has been
practiced in the hotel sector. This study will also focus on finding out the methods of
utilization of social media in an appropriate way.
This study will also concentrate to find out the advantages of online marketing and
highlights the benefits of using social media as a strategic tool of marketing. In other hand,
the research will investigates how Hoteliers are promoting their services and products via
online to the customers and how customers feels about online marketing and social media
forums. Thus, the objectives of the study are highlighted as below:
 Investigate how the online marketing (social media and e-mail marketing) has been
responded by the customers.
 Distinguish the customers and managerial perceptions towards the effect of online
marketing in hotel business.
1.4.2 Research Questions:

 What kind of social media and e-mail marketing strategy is used by the hotel sector?
 How does online marketing contribute in developing personal relationships with the
customers?
 To what extent does the online marketing is practiced in hotel sector at London,
Heathrow?
 What methods are used by customers to book a hotel at London Heathrow?
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1. 5 Rationale for the research
The effectiveness and possibility for a market space depends how on how the marketers
utilize the new communication strategy that has been emerged on internet (Ozuem, 2004).
He adds that the internet has a direct impact on online marketing as it helps the companies
to interact with the customers and other people directly. Developing country like Nepal
school activities is the only method to engage students’ and is a major factor for students’
success, therefore teachers and instructors need to go through the training and
development program that helps them to energetically participate students in different class
room activities.
The hospitality industry has focused its marketing process specifically with a particular
group of customers so known as target market (Hsu et al 2002). According to Muller (2009)
most of the hoteliers are unaware about their presence on the internet. He emphasise that
the hoteliers should focus on developing pleasant websites and starts campaigns through
search engine or affiliate marketing and Adwords on Google to generate huge amount of
traffic and sales. Thus, the research study will concentrate to investigate on these issues to
find out the solid references for the hoteliers and can provide a basis for future academic
research.
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CHAPTER 2- LITERATURE REVIEW
2.1 Introduction
According to Saunders et al (2009) literature review focus on developing the appropriate
and sufficient knowledge on the selected topics of the researcher to enhance them with the
latest and up to date information in the present globalized world.
The purpose of this literature review is to support the theoretical part of the online marketing
concept and strategy to find out the related effects of it’s in the hotel sector. The various
theoretical opinions and views on online marketing by many authors are outlined with critical
evaluation of management interest towards online marketing is discussed to investigate the
effects of online marketing within hotel industries.
Gay et al (2007, p.5) defines online marketing as:
The application of information technologies for internal business processes as well as

activities in which a company engages during commercial activity. These activities can
include functional activities such as finance, marketing, human resources management and
operations.
Online marketing known as internet marketing or e-marketing and it has different aspects
and strategies to cover sales and services (Sumayo 2011). According to Muller (2011) the
development of the internet has dramatically disrupted the old tradition and strategies of
companies and industries. He highlights that the online marketing has created a huge
opportunity and challenges on marketing and also has affected the old, traditional and well-
established advertisement functions and networks. The online marketing is a new trend in
the market and the companies who take the benefits of this will automatically increase sales
and generate revenue.
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Botha et al (2004) explain the internet and online marketing does not change the theme and
fundamentals of the marketing but obviously this is a new medium and networking method
for companies to reach and update their potential customers. Moreover, the website is
playing a most important role for businesses to interact with their customers and to expand
their business globally (Mills and Law 2004).
The traditional marketing including newspaper marketing, TV ads and even the stores will
be replaced by online marketing in few years (Kotler et al 2009). Easy access, interaction
forums and 24 Hours availability of products has an important impact on sales. The most
important thing of online marketing is measurable, traceable, cost effective and user friendly
than the offline and traditional markets. According to (Jung 2007) the internet has now
become a most essential part of communication and is developing comprehensive
marketing and sales platform. The customers are able to interact with fellow buyers, put
their feedback and can find the latest updates and promotions whatever suits their mood,
need and desire.
All most all of the companies and businesses have introduced online marketing system that
has brought a breakthrough on the entire e-commerce and online marketing (Jones 2009).
The online marketing system is easy, reachable and flexible to change and updates the
products and rates which has become an essential part of human life. He highlights that the
increasing number of billions of users on the internet and the influence of the online
marketing can turn the world in a small village.
The online marketing and e-commerce has huge benefits as it helps business to reduce
budgets, increase public relations, effective communication and increase the efficiency of
the workforce (Bidgoli 2002).
Newlands (2011) emphasises on the importance of companies’ website to meet the

changes on business strategy. In addition, customers are well aware in using the internet
and expect up to date news, promotions and subscriptions. He also adds that placing the
services and products of the company on the internet is a huge chance to generate traffic
and revenue as billions of users has access to the internet via different methods.
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The entire world has been changed into a room inside the internet creating a huge scope of
online marketing. Almost all of the companies and businesses have turned their marketing
strategy to online marketing including social media, email marketing, affiliate marketing,
blogs and Google’s pay per click ads (Craig 2011). He stresses the internet is a big platform
for the companies to generate revenue and sell products however, only few of the big
companies are using it on an appropriate way.
According to Ward (2011) Online marketing is all about to promote the service and
products online by which various techniques including Search Engine Optimization (SEO),
web design strategies, email marketing, affiliate marketing, online promotions and linking. In
other hand, it helps to communicate about the products and services, find out the need and
preference of the customers, advertise and sell goods and services.
However, Duermyer (2011) states online marketing has huge impacts on sales and
marketing of the company products. It can be used in different ways as according to the
company strategy to connect to the potential customers. He adds that online marketing is
effective as it can target selected locations; specific promotional advertisement for specific
reasons and continents, advertisement online is very cheap in comparison to the
newspaper and television ads and can reach to the maximum customers. Online marketing
can reach to the people worldwide and it is easy to track how many people are interested in
your products and how many purchased and click it.
Furthermore, the options available on internet and websites to compare the prices of hotels
in particular cities, reason and countries with an opportunity to check the fellow customers
reviews, pictures and method of payment has created positive impact on sales of the hotels
sector (Mackenzie 2009). He adds that the online reservation system is quick and efficient
that is attracting the people to use the hotels websites but in the same time people are more
aware in comparing the products and services so the websites of the hotels should be up to
date and user friendly to sell the products to customers who visited the website. In other
hand, people now trust the companies to purchase online and provides the personal and
card details which has a very huge impact on the marketing.
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However, online marketing is high competitive and company without technical updates and
online marketing strategies cannot exist (Gonzalez 2011). He stresses only the company
with appropriate methods and strategies on marketing can reach to the potential customer
worldwide and can sell their product and services online. The increasing habit and
requirement of the internet is creating huge traffic on the internet. According to Focus
(2012) the biggest retail stores in the world has millions of active customers.
 Amazon: 59 million active customers

 You Tube: 100 million videos watched per day
 Google: 91 million searches per day
 Facebook: 575 million active customers
According to Google (2011), Facebook is leading the World Wide Web by attracting the
unique visitors. The data published by Google on July 2011 compares the number of
visitors to the top listed websites and social media network.
 Facebook: 880,000,000 unique visitors

 You Tube: 800,000,000 unique visitors
 Yahoo: 590,000,000 unique visitors
 MSN: 440,000,000 unique visitors
 Twitter: 160,000,000 unique visitors
 Amazon: 110,000,000 unique visitors
 Apple: 98,000,000 unique visitors
 Pay Pal: 73,000,000 unique visitors
 Booking.com: 41,000,000 unique visitors
The global expansion of online marketing has created a huge opportunity for businesses to
expand globally (Hollensen 2007). He stresses that due to the competitive advantage of the
businesses firms are able to update with the new technologies, global marketing strategies
and has high chances to reach to potential customers to make a huge profit on sales.
According to Briggs (2009) hospitality industry is totally benefited from the developed online
marketing system. He adds that the online marketing system has created an opportunity for
customers to compare the prices and quality of hotels before buying and purchasing the
services and products. On the other hand, due to the competition of the prices online
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customers are getting chances of price reduction and various offers and promotion if they
make a reservation online (Meyerson and Scarborough 2009).
However, there are lots of disadvantages regarding to the online marketing. Many business
firms are facing difficulty to compete in the global online marketing system that causes the
company to close down (Zappala and Gray 2006). In addition, the internet has few
limitations, if all the company focus on online marketing then businesses will miss a huge
segment of people which are not interested and don’t have access to the internet.
According to Todaro (2007) it’s a very huge task for the companies to change and integrate
their workforce in the online competitive market. The hidden cost and regular updates on
technology is not cheap to maintain the budget for the companies. In other hand, the online
marketing system has complex legal, security and privacy issues to maintain with.
In addition, the people still wants to feel, smell or taste the product physically which cannot
be replaced by the online marketing (Dholakia et al 2002). He argues that online marketing
cannot be the alternate on key issues like socialisation nature of people during the offline
shopping. Clarke and Flaherty (2005) highlights that in some extent online marketing is
destroying the monopoly of giants companies but it is still a big challenge for the small
businesses and firms to maintain contract, intellectual property and consumer protection
issues.
Smith (2011) stresses that despite various opportunity and benefits of online marketing
there are major issues and concerns like running costs of website, maintenance and
updates are massive challenges for the small firms and companies. However, online
marketing is covering the huge market and attracting millions of people every day to browse
the internet to find the best deals and products. This trend obviously forces the companies
to affiliate with online marketing strategy and increase the volume of sales through online.
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2.2 Online Marketing Methods and Strategies
There are thousands of methods and strategies for companies to invest online (Lake 2012).
The hospitality industry has been known as the rich industry within the entire business
industries (Zhou 2004). He highlights that it is become essential for the hospitality company
to update with the new technology and change the business strategy due to the need of
millions of customers browsing internet to find the best deals online. According to Law et al
(2011) the most important tools to promote the company services and products online is a
website. The increasing number of internet users and their interest to surf the internet to find
the suitable holiday package has forced hotels to reach the customers through social media
and internet.
The internet is reached by billions of people every day (Todaro 2007). He emphasises that
the company should give priority to the online marketing techniques and strategies which fit
best to the company. The major methods of online marketing methods include e-mail
marketing, affiliate marketing, social media, pay per click advertisement, banner advertising,
internet permission marketing, blogs, articles posting, search engine optimization, SMS
marketing, RSS feed, press releases and network marketing.
According to Morris (2008) there are few methods of online marketing which can turn
businesses to success:
1. Affiliate Marketing: This marketing is the best marketing tool for the beginners as the
company or individual don’t have to invest in web designing, product creation, credit
card processing, tracking and advertisement. In this marketing you have to promote the
selected products and services of other companies and get commissions when
customers buy and purchase those products from your website. This marketing method
is also defined as pay-per performance marketing.
2. Pay per click: Pay per click marketing is a popular marketing online with large search
engines to promote your products and services. This marketing is one of the top
marketing tools used by the companies to reach to the millions of customers who are
searching their needs and requirement on the internet. You have to put your ads on
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Google, Bing, Yahoo and other search engines with related keywords and have to pay
the search engines if customers click your ads.
3. Search Engine Optimisation (SEO): This marketing method is a tool to improve the
rank of your website, increase the number of traffic on your website and helps develop
the organic growth of your website on search engines. SEO technique is based on
keywords and has target to specific search including worldwide, specific regions,
images, videos and local search. The optimum goal of SEO technique is to increase
your website rank and bring it on the first row of the search engine pages.
4. Blogs: Blogging is one of the best ways to communicate with the potential customers,
get customers feedback, develop new marketing strategy and helps company to known
the interest of the customers. It also helps you to develop public relations, reduce your
work load on replying individual e-mail to the customers and is powerful to change
increase your sales.
5. Really Simple Syndication (RSS Feed): RSS Feed generally helps companies to store
the news and updates that are important to customers and viewers (Finkelstein 2005). In
past customers had to bookmark the websites of the companies and return back to the
browser to check the updates but RSS Feed helps customer to check the new updates
just by clicking the RSS Feed button. It helps company to save time to send an e-mail
about the new information and updates as well as customers to get the information as
soon as it is published.
6. Banner Advertising: Banner advertising generally includes an attractive layout that

links to the website of the other companies or advertiser (Brown 2008). When the
visitors browse the websites of the other company they will see the banner of your
company that directs visitors to your company’s website. This is a popular way of
advertising online to reach to the visitors and possible customers worldwide.
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The major focus of this research study is to find out the effects of e-mail marketing and
social media network on hotel businesses. However, the mentioned online marketing
methods and strategies can be the other options for the hoteliers as they are important part
of online marketing techniques.
2.2.1 E-mail Marketing:

E-mail marketing is considered as an effective marketing method and tools (Brown 2007).
He emphasizes if e-mail marketing is designed and used in a proper way then it can be the
best marketing tools for companies. E-mail marketing is financially cheap to reach millions
of customers with your new promotions, offers, advertisement and relevant news and
releases in compare to the offline and traditional methods of marketing.
According to Mullen and Daniels (2009) e-mail marketing is a very cost-effective tool for
online marketing. It is considered to be reliable, effective and economic way to reach
numerous customers worldwide. The company can easily track the click rate, open rates
and bounce rates to analyse the effectiveness of the e-mail campaign.
E-mail marketing has a high influence on public relations (Groves 2009). He explains that e-
mail marketing can generate quick success to the company as it has lots of benefits
including global touch, lower cost, highly personalized, measurable quick response and
simplest. According to Lorette (2011) e-mail is just a simple tool to communicate for
personal and professional purposes though it plays vital role for businesses to leave
influences on their potential customer. She adds that e-mail marketing is gaining the
popularity and can drag the customers to use the websites of the company or to purchase
products and services. This is the good result for hoteliers to reach to the potential
customers and keep up to date information and promotions on their website. In addition, e-
mail marketing is cheap, quick and high effective as it can return companies the huge
amount in comparison to the cost they invested on marketing.
The message reflects on the recipient inbox plays vital role to turn the customers to use the
product and services send by the company (Mullen and Daniels 2009). They stresses that
most of the company face failure on e-mail marketing due to the wrong strategy they use on
e-mail campaigns, it must be taken in consideration that what customers expect from the
business rather than what is your expectation.
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Jenkins (2009) predicts that the total expenses on e-mail marketing by the companies will
reach up to $12 billion at the end of the year 2012 with high effect and impact on revenue.
The effectiveness of e-mail marketing and campaigns depends on the message on the
subject and content on the e-mail (Butler 2009). He adds that without interesting and
attractive content no one can change the customers’ mood to purchase and go on details to
see the content send through e-mail.
If a company manages to use e-mail marketing in a proper way how it should be then it can
produce effective result on marketing and sales (Feltenstein 2005). This is the perfect time
for businesses to invest their few budgets on e-mail marketing to utilize and create more
opportunity on the online marketing system. He adds that without any research and
experiment no one can get a better strategy and techniques to compete in the competitive
world.
According to Patricelli and Miltutinovic (2002) 65% of the businesses have invested 1 up to
5 % of the budget to advertise via e-mail. However, the most challenging part is to find and
research the up to date information of the customers (Mullen and Daniels 2009).
With several advantages e-mail marketing possess few disadvantages (McCormick, 2011).
He highlights that the best way to start e-mail campaigns is to take the permission of the
customers but even though you take the permission the customers still can consider your e-
mail as a spam. On the other hand, your e-mail subject heading might not be attractive and
interesting for customers to open the e-mail.
Wee (2011) stresses that most of the companies are using the e-mail campaign on wrong
way, customers have been made automatic subscribers and are receiving promotional
newsletter from the companies. He adds that companies need to filter the e-mail addresses
of the targeted customers otherwise recipients can report your web host that might shut
down your website.
The most challenging thing on e-mail marketing is developing new relation (Groves 2009).
You are sending e-mail message to strangers and they might think your e-mails are spam
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or junk. No click and response on your e-mails means you are not getting any positive
response or profitable response.
However, there is no better option than e-mail marketing in this world as most of the people
have an e-mail address but they might not have social network affiliation or accounts. The
business depends on how you overcome the challenges of e-mail marketing and use the
right techniques to drive your business towards success. The major issues to be taken in
consideration are up to dated database to attract customers to use offers and promotions,
encouraging them to subscribe your marketing products and trying to develop the best
subject header to get high open rate, click rate and profit conversion rate.
In addition, e-mail marketing has lots of opportunity and advantages so companies and
marketers should keep away from the disadvantages. Keep focus on attracting customers
on websites, promote bulletins and track the behaviour of the customers.
2.2.2 Social Media:

This section of literature review is focused on brief overview of Social Media including
introduction, characteristics, advantages, disadvantages and challenges.
According to Chan (2010) Social Media represents two way communications between
marketers and consumers. He adds that it is a huge platform to engage and interact with
the people you have not seen, met and will meet in future. Social Media is a big forum
where people can share their ideas, put comments, blogs, photos, videos whatever relevant
to the topic (Scott 2011).
Evans (2012) defines social media as a medium to share the thoughts and experiences
related to the company’s brand, products, services and interest. In addition, sometime it
looks like nothing more than a collection of comments, views and chatting but it has a huge
influence on your company product and services. Furthermore, you have a great
opportunity to develop a new marketing strategy, use the knowledge collected from
feedback of customers to change the sale strategy and develop related technology and
tools to turn the visitors to the potential customer of your company (ibid).
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Brogan (2011) explains that social media is not a new marketing tools in the internet. Your
company might be new for the social media but your competitors and customers are highly
involved in social media. According to Bozarth (2011) social media represents the forum
including Blogs, Facebook, Twitter, Google+ etc that comprise the views, ideas, comments
and reviews by marketers, customers, writers, journalist and media.
Social media has got a broad range including video sharing sites like YouTube and Flickr
and you can join on social networks like Facebook, LinkedIn, Twitter and Google+ (Ward
2010). She adds due to its diverse nature it has become a part of human life and is
providing various services that the traditional media never provided to you. Businesses from
all sectors are involving and trying to extend their company worldwide through internet and
wants to generate high revenue and profit on sales.
According to Luther (2011) Social Media and Networks are the latest online forums and
communities used by the people to get information, participate in related topics and issues.
Furthermore, the free and easy access of the applications of social media is creating huge
impacts on online marketing. The participation of people in social media is billions per day
whether or not their involvement is with business or not.
It is claimed that company like IBM is participating in different social media and networks
with lots of videos on YouTube, various blogs and articles and twitting their products to
customers and visitors (Zarella 2010). Social Media is not only to the big business
companies but these are the platforms for small businesses, non profit organisations, media
and journalists, religious organisations and celebrities (Sterne 2010).
Powell et al (2011) highlights the proper use of social media as Dell Company was able to
increased $19 million business revenue by using its Twitter account. Companies should
focus on suitable business strategy through the social media to reach and influence the
millions of visitors browsing the internet and social media.
Meyerson (2010) emphasizes on two key points of social media marketing. Firstly, it is
about to share your products with big passion and enthusiasm for the visitors and
customers of your company and secondly, utilize the forum of social media by sharing what
has not been shared before and keep updating what your company has invested new.
21
Social Media Marketing is the proper medium for two way communications (Meyerson
2010). It has a huge difference than traditional marketing styles, not only the company and
customers involve in the social media but also the fellow customers can involve directly.
The social media has generated huge opportunities to companies like brand establishment,
research, feedback, developing new strategies (Shipley 2010). The most important thing to
be taken in consideration is to find out social media forums where the company’s potential
customers are hanging out. He adds that company can test new product and services
focusing on the interest of the customers on social media that can be taken as an
experiment before launching the new products on competitive market.
With lots of benefits social media reflects major challenges on social media marketing
(Idugboe 2010). He adds that major challenges includes privacy of the customer, finding
business opportunities on diverse communities around the world, developing public
relations and finding out the expectations of the customers.
Sweeney and Craig (2011) explore that social media is not a final tool to fix your company
problem when you are suffering from market lost. You have to involve on other marketing
initiatives and strategy alongside with the involvement in social media. The number of fans
on Facebook, followers on twitter or number of people in your Google+ circle does not
mean your business is success so you must focus on generating revenue for your company
as well.
Despite of advantages social media has few drawbacks (Norton 2010). He adds that social
media is a bit time consuming to involve and response the comments, queries and feedback
of the customers. Furthermore, there are several issues like risk of negative comments
about the companies and miss using of your company brand.
According to Lodha (2011) many of the company are involving on social media forum and
marketing without knowing its disadvantages. He stresses that social media might be very
harmful for the company if the personal details and information is hacked by the hackers
and used it in an appropriate way. Furthermore, the good reputation and brand of the
company can be destroyed in few seconds.
22
It has been found that more than 90% of people visiting websites to book hotel rooms read
the reviews of the fellow customers (Hayes and Miller 2011). In addition it has been
reported that the reviews on the online marketing system were found accurate and relevant
that emphasizes hoteliers to participate and use an appropriate techniques to increase the
revenue and sales of the company. Khosrowpour (2002) encourages hoteliers to get up to
date with the e-mail, social media and online marketing strategies and techniques to
improve the quality of customer service.
The effects of online marketing are experimented within the hotel industry with specific
research strategies in the next methodological part of the research study.
2.3 Summary
In conclusion, the literature review links between online marketing and its methods and
strategies has developed strong chain on online marketing strategy. On the other hand, the
theoretical part of online marketing strategy has vital role to aware the managers and
marketers of hotel businesses. It has been found that over 65% of the business sectors are
investing up to 5% of their annual budget on e-mail marketing (Patricelli et al 2002).
Moreover, e-mail marketing can generate quick success due to the low investment and
quick response. Likewise, the social media is emerging as a new trend in the market and
creating huge effects and impact on online marketing strategies for an example it is claimed
that Dell Company was able to generate more than $19 million revenue by using its twitter
account.
In addition, the literature review has raised the issue on updating the skill and efficiency of
the staff to compete in this competitive online marketing world.
The effects of online marketing are studied in the hotel sector by setting up research
strategies and philosophy in the next section research methodological part of the research.
Chapter-3 Research Methodology

23
3.1 Introduction:
The entire part of the methodology section discusses the methods used by the researcher
during the study on the chosen companies. The research methodology is a combination of
primary and secondary data collection methods with the justification of its effectiveness and
relevancy. A structured procedure was used according to research strategies in data
collection method. The data collection technique involved the interview of the General
Manager, Rooms and Revenue Manager, Sales and Marketing Manager, Reservation and
Front office who were responsible for marketing online. In addition, customer survey with
questionnaires was done with the hotel users to find out their involvement on online
marketing and social media forums.
3.2 Research Methodology:

Researchers use different methods that include semi-structured or thematic interview and
questionnaires to collect responds (McNabb 2008). In addition, the formation and design of
the research questions has the key impact of finding and data collection of research study
to find the effective outcome. According to Phelps et al (2009) pilot study is another
important part of research study to find out feedback on questionnaire, check the response
rate and helps on analysing valid and reliable data.
The overall research methodology is described by using the form of a ‘research onion’
introduced by Saunders, Lewis and Thornhill (2009) which explain the whole process in six
layers including research philosophy, approaches, strategies, choices, time horizons and
techniques of data collection. These six layers are shown diagrammatically in the figure
below:
24
Source: Saunders, Lewis and Thornhill (2009, p. 138)
The figure has an interconnection relation in between and has been suggested to develop
the research design from the top down process, starting with the research philosophy and
explaining up to the final data collection and analysis layer.
3.2.1 Research Philosophy
Research philosophy can be described in various ways including positivism, realism,

interpretivism and pragmatism (Saunders et al 2009). The positivism focused on the
deductive approach that agreed on figure and fact and interpretivism is linked with inductive
approach.
Knok (2003) argues that the opposite explanation of positivism and interpretivism cannot
help the researcher to find out alternative descriptions in research study. Thus, this will
create the negative influence on the objectives of research study to use both approaches on
the same study. In addition, positivism depends on hypotheses and followed the traditional
approach strategy whilst interpretivism depends on reality and followed the holistic-inductive
approach (Decrop 2006).
This research study adopted both qualitative and quantitative methods. According to
Saunders et al (2009) qualitative and quantitative methods can be used appropriately with
any kind of research study. However, the balance between the qualitative and quantitative
25
methods will depend on the techniques and strategies chosen within the sections of the
research study (Thomas et al 2011).
The proposed research study was focused on a particular subject to find out in-depth
information from the hotel sector which helps researcher to explore the subject. Qualitative
research methods comprise varied techniques from personal interview to group or focus
group opinions (Belk 2007). In addition, the results of the research are more concerned on
quantitative methods rather than quantitative. However, the research has also used
quantitative methods via questionnaires to collect data from hotel users to find the exact
facts and figure.
3.2.2 Research Strategy

The most important part of the research strategy is to find out whether the used methods
can help to find out the answers of the highlighted research questions and can meet the
objectives of the study (Saunders et al 2009). Moreover, there are different types of
research strategies used in research study such as a survey, case study, observation,
experiment, action research, ethnography, grounded theory etc. According to Murchison
(2010) ethnography research strategy is used by various sectors including sociology,
anthropology, marketing, management and public sectors because of its effectiveness to
discover the different types of information that cannot be obtained from other strategy like a
survey, case study and observation.
This research study is based on case study as it was the appropriate method to find out the
details from the qualitative and quantitative research methods applied. The case study
strategy is moreover supportive to go in-depth with the interviewees to answer why? How?
Where? and What? Questions (Morris and Wood 1991, cited in Saunders et al, 2009, p146).
However, the researcher should be concern in how the methodology of interview will be
applied to find out the appropriate data collection to get the outcome of the study.
3.2.3 Time Horizon

In this research study cross-sectional time horizon is taken in consideration as an
appropriate method. According to Saunders et al (2009) most of the academic researchers
26
are time constrained so it does not allow time for longitudinal study. The longitudinal study
was not considered in this study because it involves the same sample to follow for the long
period of time which is difficult and expensive to follow.
3.3 Data Analysis Technique
All the collected data are always in a raw form that should be turned into the information by
using various techniques including; graphs, charts and statistics (Saunders et al 2009).
The interviews were recorded and notes were made during the interview, which were then
written and elaborate after the interview. The collected data were divided into groups in
similar topics and marked by highlighting the paragraphs, sentences and phrases to
interpret the raw data. The raw interviews were divided into groups with similar topics and
were elaborate and clarified. The collected data and information were presented by charts
and content analysis methods.
3.3.1 Data Collection:

According to Wild et al (2009) primary data is a raw which was collected by the in-depth
semi-structured interviews of hotel managers and questionnaire method was used with
hotel users and customers. The research questions, objectives and target groups were
taken in consideration during the selection of this process. On the other hand, secondary
data has been collected through books, journals, internet and reports and was analysed
according to the context of the study.
3.4 Target Population and Sample
Sampling is a process of selecting or choosing the research participants (Boone and Kurtz
2010). From a large size of population of hotels in London Heathrow 10 hotels were
selected during the research by using probability sampling techniques. The chosen
populations of 10 hotels and 2 hotel booking agencies could provide the aimed total
respondents. The targeted population that includes 6 functional managers (Marketing, Sales
and the front office) are the adequate number to carry out the research interviews for data
collection. The chosen functional managers were participated in the semi-structured
interviews as they are directly involved in sales and marketing of the hotel sector.
27
To reduce the problems the simple random sampling method with in total 6 in-depth
interviews were conducted by preparing the semi-structured questions and 40
questionnaires were filled with the customers to achieve the objectives of the research
study.
3.5 Accuracy in Data Collection

Monsen et al (2007) suggest that various subject and its characteristics may affect research
and research methods of data collection. In addition, the participants’ location and access to
the company, languages, academic background of researcher are other things that should
be taken on consideration as they have high impact on accuracy of data collection.
In this research study almost same questions were asked with 6 functional managers. The
questions were slightly different according to the position and responsibility of managers.
The same questions and method of interview was applied in different times with different
personnel that created huge chance to check the reliability of the research questions.
Similarly, the pilot interview test form chosen sample was conducted to get good response
and accurate information on the context of this research study. The questionnaire format
was exactly same for all 40 respondents to find out the exact facts and figure.
3.6 Limitations and Further Research

To manage the time and arrange an appointment little discussion on the research study was
done via email and telephone conversation. The functional managers especially on sales
department were busy on their daily tight schedule and operations that has limited the time
during the interview session.
The primary data were collected by using the audio recorder and short bullet notes during
the interview session which was transcribed after the interview which a bit challenging to
create accuracy on the collected data. The process of developing transcribed was time
consuming and on other hand the willingness of interviewee to become anonymous was a
problem of reference in data analysis.
3.7Summary
In general, the research methodology has followed the research process onion as described
by Saunders et al (2009). This interpretivism research philosophy was found appropriate in
the context of this research study as it is focused on fact and figures and on other hand,
28
ethnography research style was chosen because it was helpful to conduct casual semi-
structured interviews with the functional managers and was broad and relevant than a
survey, case study and observation strategy.
The selected managers were the targeted population for in-depth interview as they are
directly involved in sales and marketing of the hotel sector and that enabled to obtain valid
data for interpretation.
The finding and analysis of the semi-structured interviews and questionnaires has been
presented in the following finding and analysis section of this research study.
CHAPTER-4 FINDING AND ANALYSIS
29
This section presents all the findings and data analysis process conducted with 5 functional
managers of hotels, 1 manager of online booking agency and 40 hotel users. This part of the
study represents the managerial and customer views and knowledge regarding to the effects
of online marketing that includes e-mail and social media marketing. The research aims and
objectives were taken in consideration before interpretation of raw data.
4.1 Needs of E-mail Marketing and Social Media
According to many respondents’ views they have highlighted the needs of training and
development in their respective hotels.
In this regard, Respondent-C states (Appendix-III, Table: 1, Q.2)
“The response rate on our e-mail from customer is very poor though it is very
essential tool. Social media are absolutely creating more values on marketing
and they are now going forward towards commercial media. The main thing is
we are not still clever enough to grab the millions of people who are
connected with social media. ”
The e-mail and social media is a part of everyday life and the needs of these tools on
business should not be ignored by the hotel sector. The need of e-mail marketing stated by
Groves (2009) in literature has positive response to the respondents’ views. He explains that
e-mail marketing can generate quick success to the company as it has lots of benefits
including global touch, lower cost, highly personalized, measurable quick response and
simplest.
Sales Manager (Respondent- F) of the hotel booking agency puts his views,
30
When websites are upon running the next strategy is to start with the e-mail
campaigns. E-mail marketing and social media has huge impact on market
and there are no other options to promote your business to the customers.
We will update customers with the information and keep up to date with social
media networks. 
(Appendix-III, Table: 1, Q.2).
The Front of House Manager (Respondent-A) of the hotel put his views,
E-mail marketing is helping a lot and it is very easy to get in touch with the
customers. We can see a lot of emails coming to the reservation department.
It is helping our past business to come back on track. Similarly, social media
is helping a lot. 
The above views of the respondents states that the need of e-mail and social media
marketing in the hotel sector. It is not only part to generate business and sell your products
but it is the best way to get in touch with your customers with regular promotions and
updates. Respondent-B added that Facebook and Twitter is checked by the person in every
minute. If our hotel is on social media then people can find what is going on and they will
select the best offers. Same as in e-mail, if you provide information to the customers then it
will help them to choose the best available options rather than finding and searching the
information on the internet. (Appendix-III, Table: 1, Respondent- B, Q.2).
In support to the above views, Respondent – D (Night Manager) also highlights,
31
“For the company like ours need to have powerful strategy on e-mail and
social media activities as we are not a brand hotel and no one knows about
us. We need to catch the customers and have to let them know what we are
and what we are doing. If we do not want to rely on other agencies then we
have to promote ourselves first and then have to promote our services via e-
mail or social media”.
Chart:1
There was a particular question on the questionnaire about the views of customers on their
desire to receive e-mail and social media promotion. Out of 40 nearly 77% of the
respondents wish to receive promotions via e-mail and social media whereas 23% does not
want to receive any e-mail and promotions from the hotel.
The interview found that the need of e-mail and social media was essential in marketing and
promoting services of hotel sector. According to Patricelli and Miltutinovic (2002) over 65% of
the businesses have allocated 1up to 5% of the annual budget to promote their product and
services via e-mail.
4.2 Identifying the Needs of Customers

32
In concern on identifying the needs of customers Respondent- A said that our sales and
marketing team is doing a lot of researches and trying to find out how it impact, how much it
impact and which way it impact? We also try to put it in practical way and send e-mail to the
customers and try to figure out how it is coming through. These days online marketing and e-
mail marketing is helping a lot so this way we try to find out what are the needs (Appendix –
III, Table: 2, Q. 6).
Similarly, Respondent – F (Appendix – III, Table: 2, Q.6) said that people are looking
information on micro areas so we are really targeting people who are looking for micro areas
like car hire, park & fly etc. From my personal experience when I was working on Hospitality
Industry I found huge gaps on internet and customers need it was the one of the reasons we
are developing nonstop destination guides. Now we are trying to cover all the micro areas
that customers looking for in Heathrow area.
Other respondents put their thoughts as follows:
“No, nothing we have not done anything.........Personally I go through online
and check the reviews on booking.com, trip advisor and read the customers
comment cards etc. Sometime I go and speak with the customer and ask
how do you find our hotel, our services and how did you book us? From sales
perspective I have to ask customer everything, if they want any changes on
our restaurant menu or other services. ”
(Appendix – III, Table: 2, Respondent – C, Q. 6)
“People need park and fly package this time as it is one of the important need
for the customer. Internet access is other thing they looking for so we are
trying to reach to the customers with the packages and deal. ”
33
(Appendix – III, Table: 2, Respondent – B, Q. 5)
The respondents views highlights that identifying customers’ needs and expectations before
offering the services are the major issues to reach to the customers through online. It referred
to the concept of online marketing as finding business opportunities on diverse communities
around the world, developing public relations and finding out the expectations of the
customers (Idugboe 2010).
4.3 Methods of Online Marketing
The interviews identified that most of the hotels use e-mail, Pay per Click, social media, third
party websites and their own website to promote their services online. Respondent- C said
that,
“We are using Pay per Click to promote the market but the challenge is we
have the allocate budget on sales and marketing. In pay per click we can
select few key words and destinations where we can promote our market.
Similarly, we are using third party to promote our business and we are also
knocking the door of the corporate companies. ”
(Appendix – III, Table: 3, Respondent-C, Q. 8)
The respondents-A highlights the concern of social media and third party website and put his
thought, We are trying to cover people through online like Facebook and trying to provide
best services so people can put positive comments on trip advisor, laterooms and
booking.com. In other hand we are trying to promote our services by getting on the search
engine, improving hotel website and add our facilities to achieve customer satisfaction.
(Appendix – III, Table: 3, Respondent – A, Q. 7). This view was supported by other
34
interviewee. Respondent- D said that, we are using third party agencies to compete in the
market but the same time we are offering different deals and packages through our website
as well. Our sales and marketing team are developing Public Relation (PR) and finding
corporate guests and providing them best business and other packages. Similarly,
reservation and sales are following guests with the promotions via email.
The Respondent- F put views on the methods of online marketing and said that, we are using
search engine optimisation tools to optimise our site on search engines. Similarly, we are
using e-mail campaigns and other social media tools to reach to the customers. There are
other options like Pay per Click and Google Ad Words to reach the global market.
Chart:2
The question on customer using the methods of hotel booking found that 67% of respondents
are using the internet to find and make a hotel reservation, likewise out of 40 respondents
15% of them are contacting the hotel by telephone and 15% of them have corporate
negotiation with hotels while as 3% are using agencies to make a hotel reservation.
35
The interviews identify that an effective online marketing methods help hotels to reach to the
global customers to generate revenue as well as their represents on search engine (see:
Zhou 2004). Therefore, it is accepted in the investigation that online marketing methods
including third party websites, pay per click, social media and e-mail are contributing hotel
sector to increase their sell and generate revenue (see: Morris 2008).
4.4 Benefits of Online Marketing
In consideration of the benefits of online marketing on hotel sector in Heathrow London,
many views were found from the interviews such as:
“Before TV and radio advertisements were the means but nowadays it is so
expensive in comparison to the online marketing. We can see the business
through our reservation department. It is helping a lot to get back to the
customers with new promotions. It is also helping to catch the potential
customers who have been using our services. The major thing is if you reach to
the right market through online then you will get more revenue and profit. It is
going to the marketing very quickly and covering the potential customers than
what we were getting from previous market strategy. ”
(Appendix – III, Table: 4, Respondent- A, Q. 9)
“People might come through you direct by email or phone but they check first
online what is going on. Hotel is getting customer through online and making
revenue through online. At this period 45 to 50% of the booking comes through
online. You can make a reservation by sitting on your computer and can put the
bank detail and get confirmation in a minute. ”
36
(Appendix – III, Table: 4, Respondent- B, Q. 9)
“We used to be crew hotels for couple of years but now we are opened to the
private customers. The online marketing has huge impact whether it is from our
website or from third party websites. More than 50% of the booking comes
through online........... the market will possibly grow. Now the people are
computer literature and they have access with internet and applications so the
online market will definitely grow in coming future. ”
(Appendix – III, Table: 4, Respondent- C, Q. 9)
These views of respondents highlight the benefits of online marketing in present environment
and state the potential opportunity in future. It simply referred to the view of Briggs (2009)
who stresses that hospitality industry is totally benefited from the developed online marketing
system. He also adds that the online marketing system has created an opportunity for the
customers to compare the prices and quality of hotels before making a reservation.
The hotels are benefited from one side due to the developed online marketing system and
customers are also benefited from other side. In response to this, Meyerson and
Scarborough (2009) emphasises that due to the competition of the prices online customers
are getting chance of price reduction and various offers and promotion. This view was
supported by Respondent- F and he said that, our goal is to cover as much as we can and
sell the products and services of hotels. It is huge platform for hotels to use our product as it
is providing all the information which is not necessary for them to develop. We are selling the
hotel services in one side and in other hand people are using our websites to find the detail
information, book a holiday, car hire and book a flight. So we have big opportunities through
37
online marketing. You also can trace your business online and find out what are the major
areas customer surfing on it and which products they are trying to find.
(Appendix – III, Table: 4, Respondent- F, Q. 9)
4.5 Challenges of Online Marketing
The interview identified there are huge challenges on online marketing. Respondent- A said
that, “the major challenge I think is online marketing is a bit risky for the business, it may go
to the right person, it may go to the wrong person or it may not go anywhere. It is a big
challenge and depends on how your online marketing system works. It is all about how
logically, how systematically you put on the system. There is a big challenge. ” (Appendix –III,
Table: 5, Respondent- A, Q. 8).
This view was supported by other interviewees and their views are as follows:
“We are depending on third party websites to promote ourselves on market so
the most important challenge for us to promote our company on Google. If
someone try to find hotel on Google and then we should come on top page. ”
(Appendix – III, Table: 5, Respondent- D, Q. 8).
“The major challenge is pricing. If we are having a less price then people can
come to our hotel but we might not be able to provide the best standard. So we
are not compromising on standard and they are always followed so the pricing
is the major issue and biggest challenge like sometime deal is also a challenge.
Competitors can provide the same standard and can have the cheaper rate so
we have to be aware on deal as well. ”
38
(Appendix – III, Table: 5, Respondent- B, Q. 8).
The Respondent- F has slightly different view in this regard. He said that, “the biggest
challenge is you have a right team and the team understand the effects of development and
your priorities on optimisation. Other part is the team can keep up with the train and
developed techniques and can defence the challenges in terms of security. ”
(Appendix – III, Table: 5, Respondent- F, Q. 8).
Chart:3
Out of 40 respondents 24% are considering customer review as an important factor to make
a reservation with hotel while as 22% said cost and price effectiveness is the most important
factor. Only 18% said service satisfaction, 15% are taking the hotel brand as a consideration
and only 7% are taking social media involvement of the company as an important factor to
make a reservation with hotels.
The views of the respondents clarified that there are lots of challenges on online marketing
system including optimisation, hotel brand, customer reviews, pricing, deals, competition with
third parties and online security system. This is referred to the view of Todaro (2007) who
39
stresses that, it is a very huge task for the companies to change and integrate their workforce
in the online competitive market. The hidden cost and regular updates on technology is not
cheap to maintain the budget for the companies and the online marketing system has
complex legal, security and privacy issues to maintain with.
4.6 Effects of Social Media
Brogan (2011) explains that social media is not a new marketing tools in the internet. Your
company might be new for the social media but your competitors and customers are highly
involved on social media. In this context, Respondent- A explained that, these days social
media is very popular, people are more into Facebook and social media are promoting lot of
things, while you are surfing you will get other things you are interested in. This is now
commercialised and helping people and businesses to get the customers and improve the
business. People are used to with these media now and it is helping a lot for the people and
businesses. (Appendix – III, Table: 6, Q. 12).
Chart:4
40
The high involvement of respondents on facebook about 30% followed by Google+ and Trip
Advisor 25% and 18% was found from the interview questionnaire. Respondents are also
using twitter which is 19% and other social media networks. The data shows that there is
high potentiality to reach to the customers through social media network and channels.
This view was supported by other interview which is as below:
“It is a new train and for sure it will stay here for a while. As you are already
aware social media has huge impact on our day to day life and business, those
who want to take part will win and those not will get out from this. We are using
Facebook, twitter and Google+ to contact with the customers and promote our
services. Social media has already covered the huge part of the online
marketing and definitely it will get more in future. ”
(Appendix – III, Table: 6, Respondent- F, Q. 13).
4.7 Effects of Trip Advisor Review

In regards to the Trip Advisor review many ideas and views were found from the interviews
such as:
“It is affecting a lot; trip advisor is very popular to the customers. Trip advisor
website is affecting a lot, people putting review and comments on it and people
selecting the hotels according to the review of fellow customers. Before people
never used to look the feedbacks and comments but now they select the hotels
by visiting trip advisor. It has advantages and disadvantages but it has become
a train nowadays. Sometime one of the negative feedback can turn the
41
business down........... It is helping a lot from positive side and people say oh we
have seen your hotel comments on trip advisor and we are here. ”
(Appendix – III, Table: 6, Respondent- A, Q. 11).
“We hate it as well as we love it. We love it when it goes well and we hate it
with the pattern, we hate it because it is completely unregulated and completed
subjected. If the customers do not like the face of the receptionist then they can
write badly on trip advisor review. People do read the reviews of the trip advisor
and we are lucky our reputation in trip advisor is not bad. The small businesses
like Bed and Breakfast hotel might have serious negative impact on their
business if the customers write bad reviews about their business. There is no
selected rules and method on writing reviews so if the customer had some food
on our hotel and have bad stomach and then they can straight go to the trip
advisor and can write I hate something on this hotel and had bad stomach. ”
(Appendix – III, Table: 6, Respondent- C, Q. 12).
“In hotel industry it is playing a very big role. Trip advisor is massive and it will
damage you if you don’t manage it. It starts from when customer enters the
hotels door and ends with when they check out. Trip advisor can be misused, in
my experience sometime people can use it to get discount but in overall if you
have 20 good reviews and one bad that does not matter. The most important
part is hotel and small businesses can use this as a marketing tool that can
help them to generate huge revenue. Hotel has an opportunity to direct the
traffic to the website from trip advisor which can have big impact. ”
(Appendix – III, Table: 6, Respondent- C, Q. 12).

42
Chart:5
The high number of respondents 41% participated to write and read the reviews on trip
advisor. Out of 40 respondents 25% said that they are participating on hotel website to write
reviews while as 25% on Facebook, 6% on twitter and 3% on other social media and forums
to write the reviews.
These views of respondents and data shown on chart addressed the importance of Trip
Advisor review to increase the revenue of the hotel. It simply referred to the view of Luther
(2011) who stresses that social media and networks are the latest online forums used by the
people to get the information, participate in related topics and issues. Furthermore, the free
and easy access of the applications of social media is creating huge impact on online
marketing that is affecting hotel sector business. The participation of people in social media is
billions per day whether or not their involvement is with business or not.
43
CHAPTER-5 Conclusion
This chapter presents the conclusion of the research study with the main findings and
theoretical contribution which is interrelated with the research questions and aims outlined in
the introduction part of the study. The end of the section also described the recommendation
and limitation of the research study. The research study was succeed to collect data and
critically analyse and show the effects of online marketing and social media in the hotel
sector business at London Heathrow.
Research Question – 1: What kind of social media and e-mail marketing strategy is used by
hotel business?
People are more used to with the social media and e-mail marketing that is creating huge
opportunity to the hotel sectors to reach to the customers and utilize the forum of social
44
media. E-mail marketing can generate quick success by involving in the peoples live and has
lots of benefits including global touch, lower cost, measurable and quick response (Groves
2009). The main objective of this research study was to find out the used methods of social
media and e-mail marketing by hotel sector in London Heathrow to reach to the potential
customers. The use of online marketing methods was first explained through various
academic literature references which were then validated with several interviews with
functional managers and through questionnaires with the customers. The interview found
different ways, techniques and views on the methods of though there are few similar views
and strategies used.
According to Todaro (2007) the internet is reached by billions of people every day and he
emphasises that the company should give priority to the online marketing techniques and
strategies which fit best to the company.
In this context, it was found that e-mail is the best method of online marketing used by the
hotelier in London Heathrow. The primary research shows that practices of e-mail marketing
and social media helps company to increase the sales. Thus the overall conducted interviews
and views found that the uses of e-mail and social media help business to generate revenue
and reach to the potential customers. Thus, e-mail and social media is becoming the most
important tools of online marketing which is validated by the customers who wish to receive
the e-mail and social media promotions mentioned on chart:1, the uses of social media by
customers presented on Chart:4 and by interviewees in discussion (Appendix-III, Table: 1).
Research Question – 2: How does online marketing contribute to develop personal

relations with the customers?
Idugboe (2010) expresses that online marketing is a tool to find the business opportunities on
diverse communities around the world, developing public relations and finding out the
45
expectations of the customers. In support this view Meyerson and Scarborough (2009)
suggest that due to the competition of the prices online customers are getting chance of price
reduction and various offers and promotion.
In addition respondent- C (Appendix – III, Table: 3, Q. 8) highlights that online methods like
Pay per Click are the most used method to promote the market and reach to the customers
on internet. Pay per click has varied choice to select key words and destinations to promote
the business. This view was supported by respondent-F that the search engine optimisation
tools to optimise our website on search engines, e-mail campaigns and other social media
tools are the best option to reach to the customers. There are other options like Pay per Click
and Google Ad Words to reach the global market.
This research study has identified that most of the hotels are using internet as a tool to reach
to their customer with new promotions and offers and similarly, customers are using internet
as a source to find, observe and book a best deals with the hotels. This has been validated
by the chart: 1 where most of the customers were happy to receive e-mail and social media
promotions to keep in touch with the hotel services and offers.
Research Question – 3: To what extent the online marketing is practised in Hotel Business
in London, Heathrow?
The tourism and hospitality industry are the major industries investing and promoting their
business on internet. According to Zhou (2004) hospitality industry are considered as rich
industry within the entire business industries so it has become essential to them to update
with the new technology and online strategy due to the needs of millions of customers surfing
internet to find the best hotel deals online.
The respondent- D in (Appendix – III, Table: 5, Q. 8) highlights that most of the hospitality
industries depends on third party website to promote their business and services so the most
46
important challenge for us it to promote our company on top search engines including
Google.
The respondent- F (Appendix-III, Table: 1, Q.2) stresses that E-mail marketing and social
media has huge impact on market and there are no other options to promote your business
to the customers.
The research identified that online has huge impact on hotel business and the major part of
the sales and marketing strategy of the hoteliers is done through online. However, most of
the hotels depend on third party booking agencies though these agencies are also using
internet and online to sell the product and promote their business.
Research Question – 4: What methods are used by the customers to book a hotel at
London Heathrow?
According to Kotler et al (2009) the traditional marketing including newspaper, TV ads and
stores will be totally replaced by online marketing in few years. He stresses that the easy
access, interaction forum and 24 hours availability of the online services has an impact of
sales and marketing. Mackenzie (2009) note that there are best options available on internet
and websites to compare the prices of hotels in specific city, reason and countries as well as
there is an option to see the fellow customers reviews, pictures and method of payment.
The interviews identified that most of the customers use internet to book a hotel and find the
best deals. The most of the customers are using internet and social media networks to find
and discover the hotels, promotions and offers. Most of the respondents agreed that online is
the best option and appropriate methods of hotel booking practice. The chart: 3 validated that
more than 67% of the customers wish to make a hotel reservation through online. The
respondent- B (Appendix- III, Table: 4, B, Q.9) support view by saying that people might
47
come through phone or by email but they first check online about the services of the hotels.
She said that more than 50% of the booking comes through online.
In summary, the research has produced the strong relationship between online marketing
and public relationship. Finally, the online marketing is only the best tool in the present world
to reach to the millions of customers which has been validated by chart: 3 where more than
67% of customers wish to make a hotel reservation through online rather than using other
methods of booking system. This can play significant role for future academic research
related to online marketing and can be a reference for hoteliers to promote their business.
CHAPTER-6 Limitations and Recommendations
This research study focused on literature review and effects of online marketing and social
media in Hotel sector at London Heathrow. However, there are some limitations and
recommendations that should be taken on consideration. Online marketing and social media
marketing is a huge topic with new updates and rapid technological growth which has created
some difficulties to find the latest and updated information and academic reviews.
In other hand, the combination of online marketing and social media on research study can
has some criticism as it has covered the broad topic and interesting academic reviews which
can be taken on consideration for future research to discuss the topic individually. In addition,
the focus of study was on effects of online marketing and social media in hotel sector which
can be more interesting to find out the particular impacts of online marketing and social
media individually on business of hotel sector. Similarly, the research recommend to conduct
specific research on effects of Facebook and Trip Advisor which was found as most
48
important social media network used by customers to find the best deals and review the
status of the hotels.
Since the topic has covered overall effects of online marketing which is broad in itself which
could be more effective if the study can be conduct individually on the various tools of online
marketing as Pay Per Click, Google Ad words and third party booking sites which were found
as the most important tools used by the hotels to promote the market during the study. One
more interesting topic could be the study if the result vary if the interviewees were taken with
the managers from small hotels compare to the managers of branded hotel chain as few of
the hotels manager emphasises that their market share will be increase if their hotel is
branded hotel.
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Appendix – I (Interview Questions)
I. Respondent - A (Front of House Manager- Pilot Interview Question)

1. Would you please explain what made you interested to be the part of the hospitality industry
in this role?
2. Why it is essential to develop and promote company services and products to customers?
3. Most of the hotels are using websites as a tool of online marketing to promote their products
and services? Why do you think the online marketing effort needs to be directed to E-mail
marketing and Social Media too?
4. Is there a need of E-mail marketing and Social Media activities to promote the services and
products?
5. What are the objectives and priorities of your marketing programme?
6. How do you identify the needs of customers in order to promote the services via E-mail and
Social Media?
7. What are the methods of online marketing your company using to promote the services?
55
8. Do you find any challenges and issues for the application of online marketing concept? If
yes, what are these?
9. What are the potential benefits you achieve from online marketing activities?
10. Is online marketing practices is improving the sales and generating revenue for the
company?
11. What is your view on trip advisor forum and reviews of customers?
12. What is view on uses of social media and its effects?
13. Please put your views forward if you have got any comments and recommendations with
this study?
II. Respondent - B (Reservation Agent)

in this role?
products?
Social Media?
6. Can you explain me how promotions bring the changes in the behaviour of customers?
56
company?
this study?
III. Respondent - C (Regional General Manager)

in this role?
products?
Social Media?
company?
this study?
57
IV. Respondent - D (Night Manager)

in this role?
products?
company?
12. What is your view on uses of social media and its effects?
this study?
V. Respondent - E (Reception Supervisor)
in this role?
products?
58
Social Media?
11. What is your view on uses of social media and its effects?
this study?
VI. Respondent - F (Sales Manager)
1. Would you please explain what made you interested to be the part of the online booking
agency in this role?
3. Why do you think the online marketing effort needs to be directed to E-mail marketing and
Social Media too?
products?
Social Media?
59
company?
12. What is your view on Third Party (Booking Agencies) booking system?
this study?
Appendix-II
Customer Views on Online Marketing at Hotel Business in London Heathrow
This questionnaire is a part of primary data collection on the effects of Online Marketing (E-mail
and Social Media) at hotels in the vicinity of London Heathrow. Please take a moment and tell us
about your views on Online Marketing. Your responses will help in my research and your views
will be kept confidential. Thank You!
Your Name:
1. Gender:
Male Female
60
2. Country of Residence:
3. Which category describes your age?

o 18-25
o 25-35
o 35-50
o Over 50
4. How often do you stay at a hotel in London Heathrow?
o More than twice a week

o Once a month
o Every six months
o Once a year
o This is the first time
5. How do you make your reservation with the Hotel? (You can choose more than one
answer)
o Online
o By Telephone
o Agencies
o Corporate deal with company
o Walk In
6. Please rate the following factors that you consider important before making a reservation
with a hotel. If you write number 1 then it would be consider as most important and 2 for
the second most and continue up to 5.
Factors Rating
Hotel Chain/Brand
Cost/Price effectiveness
Customer Reviews
Advertising and Promotions
Service satisfaction
Social Media Involvement
61
7. Do you find the hotels are providing the exact services and products as mentioned on
their own and travel agencies websites?
o Yes
o No
8. Is it safe to use your bank details while making reservation online with the hotels and
travel agencies websites?
o Yes
o No
9. Which websites or forum do you participate to write the feedbacks or suggestions about
your stay in a Hotel?
o Hotel’s website
o Trip Advisor
o Blogs
o Facebook
o Twitter
o Others
10. Are you involved with Social Media websites?

o Yes
o No
If yes than please tick the appropriate one (You can tick more than one)
o Facebook
o Google+
o Trip Advisor
o Twitter
62
o My Space
o Others
11. Do you wish to have any promotions and advertisement from the Hotels on your
Personal E-mail address and social media forums?
o Yes
o No
12. What are the effects of online marketing on Hotel Business?
………………………………………………………………………………………
………………………………………………………………………………………
13. What suggestions and feedback on online marketing and social media do you have
which are used by the hotel business at London Heathrow?
……………………………………………………………..
Appendix – III (Qualitative Data Analysis)
Content Analysis
These are the part of interview transcripts with related interview questions (QS) of all
respondents in main discussion areas. The discussion topics are indicated in table
headings.
Table 1: Needs of E-mail Marketing and Social Media
Transcript QS Respondents
Responses
1 3 A It will definitely help, the
63
online marketing efforts

which we do every six
months or every quarter
regarding our promotions.
We send email to our
customers....We are sending
promotions during the
occasions and it is helping a
lot. Some of the regular
guest we give them loyalty
and they get cheaper rate.
E-mail marketing is helping a
lot and it is very easy to get
in touch with the customers.
We can see a lot of emails
coming to reservation
department. It is helping our
past business to come back
on track. Similarly, social
media is helping a lot, I do
not know much about the
social media business but it
is a good idea. People can
put comments and according
to the time it is very useful to
our business.
2 3 B Facebook and twitter is

checked by person in every
10 minutes. If our hotel is on
social media then people
can find what is going on in
our hotel and they will find
and select the best offers
64
and promotions. Same as in

e-mail, if you provide the
information to the customers
then they will get the
knowledge how you
promoting so it will help them
to choose the best available
options rather than finding
and searching the
information they looking for.
3 3 C The response rate on our e-

mail from customer is very
poor though it is very
essential tool. Social media
are absolutely creating more
values on marketing and
they are now going forward
towards commercial media.
The main thing is we are not
still clever enough to grab
the millions of people who
are connected with social
media.
Our company is considering
whether or not to join twitter
or other social media. The
main point of our company is
we are not a brand hotel like
Holiday Inn, Hilton or other
companies as they are using
telephone application to
book a hotel similarly they
are doing experiment on
65
check-in and check-out

process by the computers.
Our company is using
website to promote the
business and using other
booking agencies like
booking.com, laterooms and
expedia to do our business.
We are also using pay per
click to show our participants
on online marketing. Our
personal website has low
response and we are
offering new promotions and
trying to catch customer by
asking them whether or not
they wants to receive our
promotions by email.
4 3 D
For the company like ours
need to have powerful
strategy on e-mail and social
media activities as we are
not a brand hotel and no one
knows about us. We need to
catch the customers and
have to let them know what
we are and what we are
doing. If we do not want to
rely on other agencies then
we have to promote
ourselves first and then have
to promote our services via
66
e-mail or social media.

At the moment we are
depending on third party
websites no one can find us
on Google search to for few
years the marketing strategy
will go like this and help us
to promote us from their
websites.
The specific sales and
reservation department have
to follow the updates of the
customers and try to reach
to the customers. We have
to use the social media like
Facebook, twitter and other
things as well as we have to
promote services via email.
E-mail is quick and has
impact on marketing.
5 3 E For e-mail it is effective as

we can be in touch with
customers by replying their
queries and other things. It is
a best way to write an email
with services and products
which customers are looking
for. It is much easier than
explaining the details by
phone. It goes direct to the
customers and reaches
globally. Customers can
67
choose the service, product

and prices without asking
anyone and they can ask the
query by e-mail which is
more effective for both sides.
6 3 F When our all websites are

upon running our next
strategy is to start with the e-
mail campaigns. E-mail
marketing and social media
has huge impact on market
and there are no other
options to promote your
business to the customers.
We will update customers
with the information and
keep up to date with social
media networks.
Table 2: Identifying the Needs of Customer
Responses
1 6 A From management point of

view, our sales and
marketing team is doing a lot
of researches. How it impact,
how much it impact and
which way it impact? We
also try to put it in practical
way and send e-mail to the
customers and try to figure
68
out how it is coming through.

These days online marketing
and e-mail marketing is
helping a lot so this way we
try to find out what are the
needs.
2 5 B For example people need

park and fly packages this
time as it is one of the
important needs for the
customer. Likewise, internet
and other things, so we are
trying to reach to the
customers with the packages
and deal they looking for and
what we can provide.
3 6 C No, nothing we have not

done
anything.........Personally I go
through online and check the
reviews on booking.com, trip
advisor and read the
customers comment cards
etc. Sometime I go and
speak with the customer and
ask how do you find our
hotel, our services and how
did you book us? From sales
perspective I have to ask
customer everything, if they
anything changes on our
restaurant menu or other
services, similarly if the
69
competitors are providing

free internet next door then
we have to be aware on
providing those kinds of
things on our hotel as well.
6 6 F People are looking

information on micro areas
so we are really targeting
people who are looking for
micro areas like car hire,
park & fly etc. From my
personal experience when I
was working on Hospitality
Industry I found huge gaps
on internet and customers
need it was the one of the
reason we are developing
nonstop destination guides.
Now we are trying to cover
all the micro areas that
customers looking for in UK
and other places outside UK.
Table 3: Methods of Online Marketing
Responses
1 7 A We are trying to
cover people
through online like
Facebook and
trying to provide
70
best services so
people can put
positive comments
on trip advisor,
laterooms and
booking.com. In
other hand we are
trying to promote
our services by
getting on search
engine, improving
hotel website and
add our facilities to
achieve customer
satisfaction.
2 7 B If someone is
coming to stay one
night to the airport
hotels then they
are obviously
looking for cheaper
rate. There are few
issues to be taken
on consideration
like packages to
the private guests
and corporate
guests that can
attract them to
book our hotel. So
the pricing issue
would be the main
thing to attract the
71
guest so we are
trying to promote
the services as
customer demand
and looking to the
competitive
advantage of the
market. So we are
promoting the
different packages
like welcome drink,
complimentary
breakfast,
complimentary
kids’ food, internet
and other
packages as
according to the
seasons.
3 8 C We are using Pay

Per Click to
promote the market
but the challenge is
we have the
allocate budget on
sales and
marketing. In pay
per click we can
select few key
words and
destinations where
we can promote
our market.
72
Similarly, we are
using third party to
promote our
business and we
are also knocking
the door of the
corporate
companies.
4 7 D We are using third

party agencies to
compete in the
market but same
time we are
offering different
deals and
packages through
our website as well.
Our sales and
marketing team are
developing Public
Relation (PR) and
finding corporate
guests and
providing them best
business and other
packages. Same
way reservation
and sales are
following guests
with the promotions
via email.
6 7 F We are using
73
search engine
optimisation tools
to optimise our site
on search engines.
Similarly, we are
using e-mail
campaigns and
other social media
tools to reach to
the customers.
There are other
options like Pay
Per Click and
Google Ad Words
to reach the global
market.
Table 4: Potential Benefits of Online Marketing
Responses
1 9 A Before TV and
radio
advertisement were
the means but
nowadays it is so
expensive in
comparison to the
online marketing.
We can see the
business through
74
our reservation
department. It is
helping a lot to get
back to the
customers with
new promotions. It
is also helping to
catch the potential
customers who
have been using
our services. The
major thing is if you
reach to the right
market through
online then you will
get more revenue
and profit. It is
going to the
marketing very
quickly and
covering the
potential customers
than what we were
getting from
previous market
strategy.
2 9 B People might come

through you direct
by email or phone
but they check first
online what is
going on. Hotel is
getting customer
75
through online and

making revenue
through online. At
this period 45 to
50% of the booking
comes through
online. You can
make a reservation
by sitting on your
computer and can
put the bank detail
and get
confirmation in a
minute.
3 10 C We used to be
crew hotels for
couple of years but
now we are opened
to the private
customers. The
online marketing
has huge impact
whether it is from
our website or from
third party
websites. More
than 50% of the
booking comes
through
online........... the
market will possibly
grow. Now the
people are
76
computer literature
and they have
access with
internet and
applications so the
marketing will
definitely grow in
coming future.
4 9 D We are recently
opened to the
market with private
guest as we used
to be crew hotels.
The online
marketing has an
impact on our
business whether
we depend on third
party or not. If we
calculate rough
figure then what I
can say is more
than 50% of the
market depends
online.
6 9 F Our goal is to cover

as much as we can
and sell the
products and
services of hotels.
It is huge platform
for hotels to use
our product as it is
77
providing all the

information which
is not necessary for
them to develop.
We are selling the
hotel services in
one side and we
are selling them the
advertisement in
other hand.
Similarly, people
are using our
websites to find the
detail information,
book a holiday, car
hire and book a
flight. So we have
big opportunities
through online
marketing.
You also can trace
your business
online and find out
what are the major
areas customer
surfing on it and
which products
they are trying to
find.
Table 5: Challenges of Online Marketing
78
Responses
1 8 A The major
challenge I think is
online marketing is
a bit risky for the
business, it may go
to the right person,
it may go to the
wrong person or it
may not go
anywhere. It is a
big challenge and
depends on how
your online
marketing system
works. It is all
about how logically,
how systematically
you put on system.
There is a big
challenge.
2 8 B The major
challenge is
pricing. If we are
having a less price
then people can
come to our hotel
but we might not be
able to provide the
best standard. So
we are not
compromising on
79
standard and they

are always followed
so the pricing is the
major issue and
biggest challenge
like sometime deal
is also a challenge.
Competitors can
provide the same
standard and can
have the cheaper
rate so we have to
be aware on deal
as well.
3 8 C We are using Pay

Per Click to
promote the market
but the challenge is
we have the
allocate budget on
sales and
marketing. In pay
per click we can
select few key
words and
destinations where
we can promote
our market.
Similarly, we are
using third party to
promote our
business and we
are also knocking
80
the door of the

corporate
companies.
4 8 D We are depending
on third party
websites to
promote ourselves
on market so the
most important
challenge for us to
promote our
company on
Google. If someone
try to find hotel on
Google and then
we should come on
top page.
6 8 E The biggest
challenge is you
have a right team
and the team
understand the
effects of
development and
your priorities on
optimisation. Other
part is the team
can keep up with
the train and
developed
techniques and can
defence the
challenges in terms
81
of security.
Table 6: Effects of Social Media
Responses
1 12 A These days social

media is very
popular, people
are more into
facebook and I
am using
facebook and
twitter. Nowadays
social media are
promoting lot of
things, while you
are surfing into it
then you will get
other things you
are interested in.
This is now
commercialised
and helping
people and
businesses to get
the customers
and improve the
business. People
are used to with
these media now
and it is helping a
lot for the people
82
and businesses.
2 12 B I am following
Tesco on
facebook and get
the updates and
promotions they
are offering. You
get updates and
news they are
breaking news
sometime.
Similarly, hotel
can offers
promotions via
social media that
has a huge impact
to find the
potential
customers.
6 13 F It is a new train
and for sure it will
stay here for a
while. As you are
already aware
social media has
huge impact on
our day to day life
and business,
those who want to
take part will win
and those not will
get out from this.
We are using
83
Facebook, twitter
and Google+ to
contact with the
customers and
promote our
services. Social
media has already
covered the huge
part of the online
marketing and
definitely it will get
more in future.
Table 7: View and Effects of Trip Advisor Review
Responses
1 11 A Oh, it is affecting
a lot, trip advisor
is very popular to
the customers.
Trip advisor
website is
affecting a lot,
people putting
84
review and
comments on it
and people
selecting the
hotels according
to the review of
fellow customers.
According to our
hotel research as
well it is a kind of
train and people
who have not
been to the hotel
wants to come by
looking the
reviews on trip
advisor. Before
people never
used to look the
feedbacks and
comments but
now they select
the hotels by
visiting trip
advisor. It has
advantages and
disadvantages but
it has become a
train to nowadays.
Sometime one of
the negative
feedback can turn
the business
85
down........... It is
helping a lot from
positive side and
people say oh we
have seen your
hotel comments
and we are here.
3 12 C We hate it as well
as we love it. We
love it when it
goes well and we
hate it with the
pattern, we hate it
because it is
completely
unregulated and
completed
subjected. If the
customers do not
like the face of the
receptionist then
they can write
badly on trip
advisor review.
People do read
the reviews of the
trip advisor and
we are lucky our
reputation in trip
advisor is not bad.
The businesses
like Bed and
Breakfast hotel
86
might have
serious negative
impact on their
business if the
customers write
bad reviews about
their business.
There is no
selected rules and
method on writing
reviews so if the
customer had
some food on our
hotel and have
bad stomach and
then they can
straight go to the
trip advisor and
can write I hate
something on this
hotel and had bad
stomach.
6 11 E In hotel industry it
is playing a very
big role. Trip
advisor is massive
and it will damage
you if you don’t
manage it. It
starts from when
customer enters
the hotels door
and ends with
87
when they check

out. Trip advisor
can be misused,
in my experience
sometime people
can use it to get
discount but in
overall if you have
20 good reviews
and one bad that
does not matter.
The most
important part is
hotel and small
businesses can
use this as a
marketing tool
that can help
them to generate
huge money.
Hotel has an
opportunity to
direct the traffic to
their own site from
trip advisor which
can have big
impact.
88
Appendix – IV (Quantitative Data Analysis)
Content Analysis
This is a section of customer survey questionnaires with related questions to the research topic.
Questions Number Comments
Gender Male 27
Female 13
Age Group 18-25 2
25-35 27
35-50 11
Over 50
How often do you More than twice a 4

stay at a Hotel in week
89
London Heathrow? Once a year 9
Once a month 8
Every six Months 18
This is the first 1

time
How do you make Online 26

your reservation with
By Telephone 6
hotel?
Agencies 1
Corporate deal 6
with company
Walk in 3
Factors important Hotel Chain 22 Hotel chain

before making a on 1st
reservation ranking
Cost/Price 32
Customer Review 35
Advertising and 20
Promotions
Service 25
Satisfaction
Social Media 10
involvement
Do hotels are Yes 34

providing exact
No 6
service and products
as mentioned on
their websites
Is it safe to use your Yes 35

bank details while
No 5
making reservation
online with hotels
and travel agencies
websites
Participation to write Hotel Websites 15
90
the feedbacks and Trip Advisor 25

suggestions about
Blogs
hotel.
Facebook 15
Twitter 4
Others 2
Involvement with Yes 34

social media
No 6
Most used social Facebook 33

media
Google+ 27
Trip Advisor 19
Twitter 21
My space 9
Others
Wish promotions and Yes 31

advertisement on
No 9
email address and
social media
What are the effects

of Online Marketing
Suggestions &
Feedbacks on online
marketing and uses
of Social Media
91

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Effects of Online Marketing

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CARDIFF METROPOLITAN UNIVERSITY

Effects of Online Marketing (E-mail and Social Media) in the Hotel

MBA (Advanced Entry) in Business Administration

Student: Upendra Raj Poudel

Supervisor: Ian Cater

1.1 General Background 6

1.2 Context of the Research 7

1.3 Definition of Terms

1.3.1 Online Marketing 7-8

1.3.1.1 E-mail Marketing 8

1.3.1.2 Social Media 8

1.4 Focus of the Research

1.4.1 Aims and Objectives 9

1.4.2 Research Questions 9

1.5 Rationale for Research 10

Chapter 2: Literature Review

2.1 Introduction 11-15

2.2 Online Marketing Methods and Strategies 16-18

2.2.1 E-mail Marketing 18-20

2.2.2 Social Media 20-23

Chapter 3: Research Methodology

3.2 Research Methodology 24-27

3.2.1 Research Philosophy 25-26

3.2.2 Research Strategies 26

3.2.3 Time Horizon 27

3.3 Data Analysis Technique 27

3.3.1 Data Collection 27

3.4 Target Population and Sample 27-28

3.5 Accuracy in Data Collection 28

3.6 Limitations and Further Research 28

Chapter 4: Finding and Analysis

4.1 Need of E-mail marketing and Social Media 30-32

4.2 Identifying the needs of customers 33-34

4.3 Methods of Online Marketing 34-36

4.4 Benefits of Online Marketing 36-38

4.5 Challenges of Online Marketing 38-40

4.6 Effects of Social Media 40-41

4.7 Effects of Trip Advisor 42-44

Chapter 5: Conclusion 45-48

Chapter 6: Limitations and Recommendations 49

1.1 General Background

1.2 Context of the Research

1.3 Definition of Terms

“Online marketing is placing your business or product on the internet for

1.3.1.1 E-Mail Marketing

1.3.1.2 Social Media

1.4 Focus of the Research

1.4.2 Research Questions:

1. 5 Rationale for the research

CHAPTER 2- LITERATURE REVIEW

Gay et al (2007, p.5) defines online marketing as:

The application of information technologies for internal business processes as well as

Newlands (2011) emphasises on the importance of companies’ website to meet the

 Amazon: 59 million active customers

 Facebook: 880,000,000 unique visitors

2.2 Online Marketing Methods and Strategies

6. Banner Advertising: Banner advertising generally includes an attractive layout that

2.2.1 E-mail Marketing:

2.2.2 Social Media:

Chapter-3 Research Methodology

3.2 Research Methodology:

Source: Saunders, Lewis and Thornhill (2009, p. 138)

3.2.1 Research Philosophy