Social Media: Opportunities and Challenges for Hospitality

Operations

Introduction

In this essay author is going to critically analyse and evaluate different types of social media
that are being and can be used by different hospitality operations. Additionally there will be
some challenges that hospitality operations might face while using them. Some opportunities
that can be exploited by the hospitality operations are also mentioned by the author.
According to Evans (2012) social media is a virtual and interactive marketing tool which
involves texts, words, pictures, videos and facilitates the creation of likes, with the intention
of sharing choices, experiences and views about brands, products and services. Zarrella
(2010) now a day’s social media is gaining more popularity and becoming substitute to
traditional Medias like television, newspapers, radio and magazines.

Opportunities & challenges for hospitality operations

Lanz (2010) says in this age of digital marketing social media channels like Facebook,
Twitter, Flicker, YouTube, LinkedIn, Pinterest etc. provides exceptional reach by altering the
ways of attracting, engaging and retaining loyal customers. According to Lodging (2012)
through effective social media campaigning, by engaging and checking with one's online
community daily, developing an online personality that guests can relate to, and by using
direct links to drive traffic hospitality operators can achieve a bigger brand presence and can
increase site traffic and room bookings.

Hotels can use social media channels for distributing rooms to its customers. According to
Caterer and hotelkeeper (2011) Best Western hotels have now given facility to its customers
to book rooms through its Facebook page and smartphones. This gave an additional
opportunity to its guests to connect with hotel and provided a competitive advantage to the
hotel against several of its competitors by engaging 260,000 fans on its Facebook page.
This is also supported by McQuilken (2010) who says that social media like facebook and
twitter drives hotel bookings much more quickly by displaying high end images which draws
wider target audience.

However Ryan and Jones (2009) says the main challenge face by hospitality operations is
monitoring activities in social media channels, which is quiet time consuming and require a
devoted individual as a social media manager to engage potential consumers by keeping a
flow of conversation. And in order to utilize the new tools and tactics to get benefit, they
need to be integrated wisely and consistent with sales, marketing, and revenue management
efforts.

Furthermore Knapp (2012) says companies not only have to spend time, monitor and
actively solicit feedback from fans on facebook, twitter and other social Medias but also have
to efficiently market the products, services, facilities and amenities through these social
media channels in order to get benefit. Similarly Lim (2010) says some other challenges
faced by hotels are to find out different ways in order to engage the consumers and to lead
them towards becoming a guest or share their experience for the hotel within their virtual
network.

Lanz et al (2010) hospitality operations can utilize social marketing tools and channels to

attract new visitors and can likely maintain their connection with their loyal client base.
Additionally they can project the brand identity, can assist two-way real-time communication
and can accomplish return on investment (ROI). According to Daniel (2010) Jamie Howell,
owner at the fisherman’s Lodge in Jesmond says social media is an instant way to develop a
closer relationship with audience, potential new customers and helps in two way
communications. Every time a customer re-tweets or leaves comment on company’s profile
he gets a twitter alert (a beep) in his cell-phone, this makes him aware that they are being
talked about and mentioned positively.

But on the other hand according to Ross (2011) james Leaves-ley, co-founder of social
media company Crowd Conrrol H Q. says, there might be lots of challenges a hospitality
operator could face while operating it’s facebook profile as promotion tool, like getting the
tone wrong for e.g. if a company is targeting young people should write in a conversational
style and should not broadcast the message. A company have to always keep the sites fresh
and up to date with new products, promotions and launches, too much of an informal
approach and inconsistent messaging across various social media "touch points" can also
damage brand reputation.

Knapp (2012) Social media provides a competitive advantage to hospitality brands of

engaging their customers with their products and services. For example, beverage maker
Arizona declared that they've hit over 3,000,000 fans and invited their fans to design its 20th
Anniversary can in their facebook page. Ross (2011) Similarly It also gives an opportunity to
the hospitality operators to be innovative and proactive. For e.g. TGI Friday’s used its
facebook page to introduce an innovative “Cocktail Genius” app that allowed
fans(customers) to enter personality traits of their friends to a create a perfect cocktail match
from Friday’s extensive list.
However Pritchard and Motamedi (2012) says a hospitality operation could face lots of legal
issues regarding advertising and marketing products & services in social media, like
advertising laws and standards, intellectual property and user generated content and
reviews. Goldberg (2011) Hospitality operators using social media for marketing or
networking have to make arrangement in order to control user policies that make it clear that
the organization has the ability to control content and remove potentially harmful material
which might affect the brand reputation.

According to Caterer & Hotelkeeper (2011) Social media provides new possibilities to the
hospitality operators for enhancing guest relations. For example by doing five minutes social-
media research might inform that a VIP guest is looking for antique furniture and interested
in local sushi restaurants. Before his/her arrival, the hotel can arrange a printed list of
suitable local outlets as soon as he/she checks in. These few activities might lead to positive
comments, feedbacks and personal recommendations about the property in different social
media channels and can drive revenue significantly.

However Juan (2012) says hospitality organizations might face challenge in using social
networking websites as a recruitment & selection tool, because according to a survey
conducted in a hospitality job fair showed that perceived fairness and job pursuing intentions
of applicants were lower for an organization that used facebook and twitter in order to check
their profile before selecting them (as a selection tool), than an organization that did not.

Noone et al (2011) says there are two basic frame works of utilizing social media to get
opportunities for revenue management. Firstly using customer generated content in
facebook, twitter, trip advisor, WikiTravel.com etc. to formulate short term strategies like
pricing, promotion and packaging of their products and services. Long term activities involve
competitive pricing, forecasting, management of distribution channels and customer
relationship development. Second frame work involves short term strategies through firm
generated content like demand creation and building brand awareness by posting comments
and events through social media. Long term firm generated strategies involve development
of micro blogging sites for specific target segment.

Serlen (2012) says hospitality operators can use social media as an important tool to drive
revenue and enhance branding but however according to Hotel Business (2012) due to
emergence of different social media channels and user generated review/blogging sites like
trip advisors, WikiTravel.com etc. hotels are facing challenge in order to maintain their
profitably and getting forced to adjust their strategies with regards to customer feedbacks.
This is becoming crucial in order to maintain brand reputation in the market and to be the
consumer’s first choice in this era of massive competition.
McKlveen (2012) says hospitality operators can use social media channels for interactive
relationship with the community for e.g. three local Heritage Hotels & Resorts brand
properties in New Mexico responded immediately to its residents affected by wildfires
through Twitter and Facebook, by offering a special room rates to the victims and those that
evacuated their homes due to this crisis. This in-turn will give hospitality operators an
opportunity to project corporate social responsibility (CSR) and will build a positive image
towards local people.

According to Questex Media group (2012) hospitality operators can use pinterest (a new
social media getting popular now a days) for branding, visibility in social networking and
creating awareness among the consumers. It is a social photo sharing website where users
can create a profile and then an image board to post images and comments about those
images. Ritz-Carlton Chicago created a Pinterest page specially targeted towards the
wedding market. Their boards included images revealing hotel’s ambiance, food and drink
options, wedding accessories, honeymoon suites, linens, flowers and cakes. Bercovici
(2012) says just like facebook is a social network of people, pinterest is turning out be a
social network of selling products and services.

CONCLUSION

By considering all the above arguments from different authors it can be said that social
media could provide lots of opportunities that can be explored and exploited by hospitality
operations. These opportunities can be utilized in enhancing distribution of rooms, branding,
attracting potential consumers, retaining loyal customers, engaging customers with products
and services by maintaining two way-communications, guest relations and revenue
management. However at the same time hospitality operations might face lots of challenges
while applying social media like correct language while communicating with consumers,
effective and up-to date promotion with respect to products and services, legal issues
regarding privacy and unwanted user generated materials which might affect brand
reputation, strategy formulation and several HR functions etc. Hospitality operations should
take advantage of these opportunists and try to overcome the barriers and challenges
provided by these channels, in order to get profitability and maintain presence in the market.
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