Impact of Digital Marketing on Hilton Hotel, United Kingdom

Impact of digital marketing on Hilton Hotel, United Kingdom
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Course: BA (Hons) International Hotel Management
Special Module: Dissertation - Service Industries
Module code: TH60004E
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Abstract
The focus of the dissertation is on the impact that digitalization have in a hospitality industry.
The dissertation conducts research on Hilton Hotel, one of the most renowned hotels in the
world. In the modern world, technology plays an important role for the development of an
organisation. In the case of Hilton Hotel, digitalization can help it to gain the trust and loyalty
of the customers. Therefore, the dissertation provides an overview of the impact of
digitalization and the manner in which Hilton Hotel can use it for its development. The
research methodology that is adopted for the research is the positivism philosophy,
descriptive design and deductive approach. The adoption of secondary thematic analysis is
made in order to understand the works of the scholars related to the topic. Relevant themes,
analysis and evidence from the literature review is undertaken in order to complete the
dissertation in a successful manner. The data analysis shows that digitalization for Hilton
Hotel is necessary as most of the success of the business is derived from the advent and
implementation of latest technologies and digital devices. Hence, conclusion can be drawn
about the impact of digitalization that ways by which Hilton Hotel can implement its use. For
example, use of social media for promotion can be made by Hilton Hotel in order to promote
its activities to the customers.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Introduction............................................................................................................................5
1.2 Background Information on use of Digital Media in the Hospitality Sector.........................6
1.3 Brief Overview of the Research.............................................................................................7
1.4 Information of use of Digital Marketing, Social Media and Mobile......................................8
1.5 Definitions and Abbreviations................................................................................................9
1.6 Aim, Objectives and Research Questions............................................................................10
1.7 Rational for the research.......................................................................................................10
1.8 Structure of the Dissertation.................................................................................................11
CHAPTER 2: LITERATURE REVIEW.......................................................................................13
2.1 Introduction..........................................................................................................................13
2.2 Advantages of Digital Marketing for Large Hotels..............................................................14
2.3 Role of Social Media Marketing for Large Hotels...............................................................18
2.4 Challenges of Digital Marketing Platform in Hospitality Industry......................................22
2.5 Future of Digital Marketing for Large Hotels......................................................................24
CHAPTER 3: METHODOLOGY.................................................................................................28
3.1 Introduction..........................................................................................................................28
3.2 Theory of Research..............................................................................................................28
3.2.1 Introduction.......................................................................................................................28
3.2.2 Methodology.....................................................................................................................29
3.2.3 Method...............................................................................................................................30
3.2.4 Secondary Research..........................................................................................................30
3.3 Assessment of the Research.................................................................................................31

3.3.1 Reliability..........................................................................................................................31
3.3.2 Validity..............................................................................................................................33
3.3.3 Generalisability.................................................................................................................33
3.3.4 Limitations and Further Research.....................................................................................34
CHAPTER 4: DATA ANALYSIS................................................................................................35
4.1 Introduction..........................................................................................................................35
4.2 Impact of Online Consumer Reviews on Sales....................................................................35
4.3 Social Media in Tourism and Hospitality.............................................................................36
4.4 Social Media Marketing in Tourism and Hospitality...........................................................38
4.5 The Impact of Social Media on the Consumer Decision Process........................................40
4.6 Digital Divide in Tourism....................................................................................................42
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................44
5.1 Conclusion............................................................................................................................44
5.2 Answering the Research Questions......................................................................................45
Reference.......................................................................................................................................49
Appendices....................................................................................................................................55
Appendix A................................................................................................................................55
Appendix B.................................................................................................................................55
Appendix C.................................................................................................................................56
Appendix D................................................................................................................................56
Appendix E.................................................................................................................................56

CHAPTER 1: INTRODUCTION
1.1 Introduction
The significant development in the technological sphere in the last two decades have
resulted in the rise of smart phones and other gadgets leading to the ease of living among
numerous individuals. When these developments are clubbed with the platform of social media,
they produce the ideal platform from which effective marketing campaigns can be launched. The
marketers from different companies have understood the reach and power of digital media and
especially the social media in attracting the customers (Leung, Bai and Stahura 2015). Along
with the right strategy these different marketers can reach out to the potential customers
instantaneously. The companies use these digital marketing platforms to reach out to the
consumers and to interact effectively with these customers. Such ease of use, instantaneousness
and cost-effective nature of the digital platforms have become the main reason for the various
companies to use the digital marketing to communicate with the existing as well as potential
customers. Tuten (2008) argues that expenditure on digital marketing have increased notably in
the past five years. The use of digital marketing can be seen by premium and luxury hotels too
and a sizeable portion of their marketing expenses are apportioned to social media marketing. To
be concise, the digital platform offers numerous services ranging from awareness campaign,
promotional offers and discount, event reminders, conventional advertising among others (Hays,
Page and Buhalis 2013).

1.2 Background Information on use of Digital Media in the Hospitality Sector
Trillions of transaction and personal communication happens on various digital platforms
and especially the social media. Such communications and interactions offer different
organisations to influence users (customers). Modern day marketers have expanded their focus
from customer awareness to acquisition. Subsequently, more and more customer centric
approach within the activities of marketing can be seen (Kim, Lim and Brymer 2015). Marketers
have realised that the customary electronic platform (Television, Radio) are not efficient enough
as individuals have taken their activities to smart phones significantly. As a result, these
marketers have correctly picked different digital marketing platforms including social media to
reach out to the numerous customers. Some of the popular social media platforms that are
popular for the purpose of marketing are Twitter, Facebook and Instagram. Such digital
marketing enables marketers to engage with the clients, comprehend their choices and to
establish a long-lasting relationship (Xiang and Gretzel 2010). In respect to big hotel chains,
there exists significant predicament in enticing and retaining customers especially because the
switching cost is nearly non-existent. This is also another reason why big hotel chain are
establishing strong marketing department in place.
Russell (2010) stated that biggest benefit of digital marketing is their range. For instance,
the platform of FB now comprises of 2 billion users, which is way above any channel or
platform. Subsequently, FB has been targeted by numerous marketers for bolstering their
marketing and promotional activities. Kim, Lim, and Brymer (2015) opine that a characteristic
marketing activity consists of four phases. These phases are: awareness, consideration,
conversion and advocacy. Here, it is sensible to observe that

in FB brands can deploy advocates who act as brand partners to enable the entities to increase
their outreach. According to Xiang and Gretzel (2010) organisations in the services sector look
to augment their customer services in order to increase brand loyalty. Moreover, the hospitality
sector is a service-oriented industry and what the customers experience leads to his/ her
satisfaction. Thus, it may be observed that regardless of the size of a hotel it cannot have loyal
customer base unless the customer base is satisfied. Organisations in a service-oriented industry
have to constantly improve their level of service to prevent customers from switching over.
Therefore, satisfaction of the customers is also a main consideration for hotels to adjust their
marketing activities (Noone, McGuire and Rohlfs 2011).
1.3 Brief Overview of the Research
This research work is grounded on the digital marketing activities by Waldorf Hilton,
London. The research has analysed main digital marketing activities undertaken by entities in
the hospitality sector. This research paper is comprised of secondary research methods and the
main sources of data are the official Facebook page of Hilton and other pertinent literatures
related to the research topic. The secondary research will be carried out through literature review
to understand the digital marketing for large and premium hotel chains within the UK.
Within the hospitality industry, Hilton is a renowned brand. Hilton has a global presence
with over 570 properties across different continents (Hilton 2018). Waldorf Hilton, previously
known as Waldorf Hotel is a landmark hotel near Aldwych, London and its origin dates back to
1908. It is now a part of Hilton Hotels and Resorts chain. Hilton