Advantages and Disadvantages of Social Networking in Hotel Industry

This paper reviews the advantages and disadvantages of social networking in the hotel industry. It covers the applications of social networking, advantages, and disadvantages, and research gaps. The objective of the project is to find out the pros and cons of social media and the role of social networking in the hotel industry. The scope of the project is to make a research related to social networking in the hotel industry to find research gaps in it. The subject is business research, and the institutional affiliation is not mentioned. The course code, course name, and college/university are not mentioned.

BUSINESS RESEARCH
ADVANTAGES AND DISADVANTAGES OF SOCIAL NETWORKING IN HOTEL
INDUSTRY
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME
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TABLE OF CONTENTS
Introduction...........................................................................................................................................3
Project objective....................................................................................................................................4
Project scope.........................................................................................................................................4
Literature review...................................................................................................................................4
Overview...........................................................................................................................................4
Applications of social networking in hotel industry...........................................................................5
Advantages of social networking in hotel industry............................................................................6
Disadvantages of social networking in hotel industry.......................................................................9
Research Gap...................................................................................................................................12
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14

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Introduction
Social media has a great supremacy in today’s business world. It has power to control
and influence people by reaching them irrespective of geographical barriers and cultural
indifference. Growing from the initiative to connect people, social media has become an
integral part of businesses, allowing communities and individuals to get engaged with each
other. As this is the fastest means for communicating along with easy to use service, social
networking has become a cultural trend among people along with increasing its popularity
day by day (Bank, 2014). Another reason behind its acceptance is that it is a cost effective
method for businesses where they can get connected with outside world without any costs.
Facebook alone comprises more than billion users which show power of social media and
interest of people in getting connected. Twitter alone influences 64% of users who like to buy
products according to information shared through tweets. Small and big businesses have
even started making social media as a part of their marketing strategy as it offers free
marketing and advertising platform. By interacting with customers and getting their feedback,
organisation can make development according to the taste of end buyers (Dolan, 2014).
Tourism and hospitality firms have also started taking social media as a part of their
marketing strategy as nowadays bloggers and travellers depends on social networking sites to
get information about their desired destination. Along with it, social media are used by many
customers who plan their visit to hotels after making a review of the menu and room sizes
(Mukami, 2016). All these facilities along with various other benefits can be provided
through social networking. But, cons related to it are also important to be studied like making
false statement of rival companies, misuse of other firms name, etc. This paper will make a
literature review of advantages and disadvantages of social media in hotel industry to find its
significance in the hospitality sector.

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Project objective
The basic purpose behind this project is to find out pros and cons of social media
along with finding the role of social networking in hotel industry. With the increase in
involvement of social networking sites, it becomes essential to understand the level until
which it must be used. Using social medias without getting thorough knowledge can prove
dangerous for businesses especially hotel industry. Therefore, finding advantages and
disadvantages associated with social networking in hotel industry becomes primary objective
of this research.
Project scope
The scope of this project is to make a research related to social networking in hotel
industry to find research gaps in it. While making a thorough study of literature, this paper
will find out advantages and disadvantages of social networking in hotel industry. Along with
it, this paper will provide few examples of current industry who are utilising social media for
their hotel business. This paper will provide assistance to hotel industrialist as literature
review made can assist them while using social media in their business.
Literature review
Overview
According to a recent survey, more than billion users are active in Facebook and
quarter of world’s population is socially networked with each other. With search features and
engines in social network platforms, locating oneself or connecting with others becomes very

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easy. Given the excessive use of social media platform, its benefits can assure hotel
industrialists to enable effective social networking for connecting customers. Conveying
messages about service or offers along with encouraging satisfied customers to articulate
their experiences in social networking sites is important (Creative Commons, n.d.). Whereas,
responding immediately to the ones with negative incident is also anticipated in hotel
business. While searching for vacation destination and holiday packages, people highly
depend on social media. Many people like to share their holidaying experience with others
and make reviews of the hotels used. For example, 55% of Facebook users said that their
friends or family pictures inspires them to book the hotel they stayed in which will attract
more people towards the destination. On the other hand, if few people said that they have
changed their plan due to bad experiences shared by their friends or family can affect the
destined place hotel. Thus developing a sound social networking not only means to provide
digital service only, but being efficient in services is also important or else, social media can
provide adverse affects (Cognizant, 2015).
Applications of social networking in hotel industry
Like many businesses, hotel industry can also undertake applications to promote their
business marketing plan digitally. For instance, hotels can sponsor photo contests during
holidays which will make customers approach in a competitive manner and thus engagement
with customer and meeting new strangers becomes easy. By ‘competition techniques ‘and
prize distribution, more customers will get used to same hotel for that destination. For
example, Starwood Hotels loyalty programs of Marriot Groups provides with loyalty
programs to its customers where they can redeem their points for getting privileges like free
stay and dinners. Additional points are rewarded to those customers around the globe who

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give good reviews for the hotel services (Marriott International.Inc, 2018). One another
example is Best Western Group of Hotels who deals in hotel business in more than 100
countries. The company encourages people to share their dreams for vacations and invites
them to join for opportunity in winning their dream vacation. This campaign proved
successful for them and increased their sale per capita around 20% (TripAdvisor LLC, 2018).
Location based applications are also used by hotels in which hotels provides complimentary
utility products according to the climate and need of the destination. They also make
provisions for party in which they invite their guests that make them feel auxiliary friendly
atmosphere. By making applications in social networks where people visiting conferences
gets provision for family entertainment, can invite more guests along with providing
additional benefits by clubbing commercial visits with holidaying. Service recovery tools are
also used by many hotels where hotels provide online forms to their customers. Any anger
within them along with negative comment if not acknowledged in house, can be shared with
the hotel through online forms. This can provide stoppage in spreading their negative
comments socially by making apologies and assuring of quality maintenance in their
upcoming visits. On the other hand, hotels can work out on their work principles and their
faults for future (Cognizant, 2015).
Advantages of social networking in hotel industry
After recognising the importance of social media in hotel industry, advantages related
to it has been identified in literature. Many researchers have stated that marketing strategy
without social networking has become obsolete and to sustain in business, adopting social
media wisely has become necessary. Increase of traffic in social networking sites has made
business owners gain more knowledge about their customers. Creating a site or webpage for

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the company acts as a self introduction of business and in hotels, making customers aware
about their service and offering is very necessary. Media posts in social sites create
awareness among people and their curiosity to explore more about it proves advantageous for
hotels. This technique not only creates traffic, but also boosts owner’s sites (ARCA, 2012).
Search engine crawlers recognise their visitors who visit their websites even after the
searchers have visited and forgotten. This search engines are later used by site owners
making constant advertisements and promotion on visitors accounts so that their interest is
elevated. Here SEO strategies plays important part as they can understand what kind of
visitors are approaching and whom they would like to connect with for future prospects. Thus
connecting with more customers becomes easy (Copp, 2016).
Figure: Growth of social media in Global Context (SMITH, 2018)
If hotel performs outstandingly, social media will prove a real relationship builder for it.
Social media sites like Twitter and Instagram makes marketing among individuals in very
complimentary way in which interactions between are made in tweets and pictures. After
reading those tweets and status update pictures, it becomes easy for others to get knowledge
about existing hotels in their destined place. On the other hand, hotel owners get to know

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about their customer preferences and what they are planning for their weekends. Connecting
at the times of needs leads customers towards leading hotels as compared to non competitors’
(Elison, 2007). Users of social networking sites use social media not only for advertisements
and chats but also to look for posts and experiences of others. In social sites, people are
generally receptive to messages and thus they are more curious about what people say rather
than what is advertised. This again creates traffic where people shares hotel sites and
experiences related to it and while more people reciprocate, advertisement is made naively
(DeMers, 2014).
Advertisement made on social media sites allows reaching targeted and retargeted customers.
Even the history of people connected in social networking sites can be purchased for
converting the leads into sales. This is the most used technique of today’s organisations
where their business highly depends on end users. For example, ads made in Facebook can
target customers according to their location, age and culture. Making customised ads is easy
in social sites which can lead people faster than any other media like newspaper and
hoardings. Social media can make hotels noticed at the times of events (WebpageFX, 2018).
For example, media coverage, and social event like marriage can help promoting hotels in
social networking sites through uploaded picture and videos (Cooper, 2017). Brand
promotion through social media promotes brand loyalty and if the promotions are made in
regular basis, customers remain attached. Brands with active social media connections and
profiles tend to have loyal customers. By engaging personally and interacting with customers
on social networking sites rather than just posting about product, is further liked by
customers. Being socially active makes organisation treated as a unified group of person
rather than just a corporate.
Social media networking increases sales by staying in front of the customers and thus selling
product or service becomes easy. Social networking not only helps hotels in keeping

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themselves in front of potential customers but also gives platform to make constant effort in
giving them incentives to buy their service. Coupons and competitions in social channels can
increase more participation of customers which proves beneficial for organisations in driving
more sales. Customers also try to reach hotels through social media especially the ones who
are less connected with other people physically. They search for reviews of hotels in social
sites along with exploring alternative options. By making quick response to them, customers
might feel responsive attitude of the company and making decisions for them becomes easier.
On the other hand, customers can interact with hotel owners for negotiations or other benefits
they would like to purchase. Therefore a formal interaction before their visit can help hotels
organise their customer booking according to their demand (The Content Factory, 2017).
Disadvantages of social networking in hotel industry
The online marketing and social networking although proves very beneficial for hotel
industry but, identification of disadvantages associated with it are also significant. Challenges
in social media marketing process makes difficult for the companies to remain transparent in
their web pages along with providing every details becomes difficult. Implementing and
communicating through social sites also proves risky during intense times especially when
customers feel anger within them during the times of their bad experiences (Yazdanifard,
2013). Therefore, before implementing social media networking into hotel business,
disadvantages related to it shall also be identified.
At many times social media marketing proves to be time intensive. The two-way
communication process between organisation and customer takes time and requires lot of
patience to take commitment. The more active companies are chances of getting more sales
increases. But, disadvantage here is that changing demand of business in today’s world

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requires regular updating of web sites or else the information might seem outdated to
customers. Someone has to be responsible for monitoring networking sites to respond to the
comments and answer in a prompt manner. Giving current information about hotels like up
gradation of rooms and tariffs etc. is also important or else customers might feel cheated.
Hospitality business is service oriented business and managing service quality is also
necessary to remain competent in social networking sites. Time investment along with firm
dedication is basic requirement to get business involved with social media otherwise which
gaining benefit out of social media will not be possible. Therefore, just dabbling information
in web pages does not make realisation of returns.
Trademark and copyrights violation is another problem that are faced by businesses involved
in social media. Protecting one’s own copyright and trademarks from malwares and other
fraud company’s becomes challenging in hotel industries. Using recognised company’s brand
name to sell products and service has become a significant issue faced by customers. Brand
image is also spoiled as most of the time customers are unaware of it. In hotel industry, cheap
hotels might use bigger hotels brand name for selling their service and when visitors turn out,
they feel embittered (Blackhurst, 2015). This issue has made many customers think about
using social network while making choice over their destined place. Third parties
involvement in social media platform challenges companies to monitor the use of their
trademark and brand name to ensure that their name is not being misused by others. Internet
tracking and services like screening can provide help here to monitor social media activities
in safeguarding brand image from third parties. Addition to it, hotel companies can make
agreements with social networking sites for providing them with security from third party
involvements.
Safety, trust and privacy have also become difficult to be maintained in social media
marketing for hotel industry. Privacy of user’s data and security of gathered information has

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been an issue faced by many organisations. Therefore it becomes significant for the owners to
understand its implications and measures that can be adopted to prevent violation of collected
data and privacy. Maintaining trust among customers is also important for generating
customer loyalty. Online credit card frauds are one of the main reasons why many customers
fears of making online payments. In hotel industry, advance reservations through online
payment have become very challenging as many hackers and malware sites have indulged in
thefts and hacking users cards (Takahashi, 2011).
Many social networking companies like Facebook and Twitter have their own policies to
maintain user’s privacy from third parties. Hotel owners shall also ensure that their customers
are aware of their websites and believing in third parties who are outside their official website
shall not be entertained. Special codes and passwords can be allotted to genuine customers so
that their dealings are secure with the company. Generating trust among customers requires
lot of time and is one of those factors that create online buying services process. In other
words, to see practically or make a touch or smell is not involved in online marketing.
Therefore developing trust through exclusive service and instant response becomes vital in
hotel industry otherwise loosing of customers can be anticipated (Godey, 2016).
User generated contents (UGC) are one of the tools that are highly depended for building
brands image. Contents in the form of photo, message, article, blog or a video are few
examples of user generated contents shared in social media sites to make comparisons and
review of various companies. These UGC are very crucial for image of the company as many
people make choices for their destination according to it. Disadvantage faced here is that
many competitors’ can make negative publicity of rival companies by posting irrelevant data
along with answering customers in rude and unethical manner to infuriate them (Hajli, 2013).
Therefore, soliciting UGC while making marketing becomes risky for organisations and
taking necessary steps to minimise it becomes critical. Negative feedback is one of the

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biggest disadvantages of social media as it has ability to switch loyal customers to other
brand. This disadvantage to some extent depends on the services provided by hotels
themselves as if customers are happy, positive comments will be made (Jung, 2018). On the
other hand any bad experience or in satisfaction in service can provide negativity in customer
response. Customer’s reviews are very important in social media as involvement of more
customers depends on reviews made by experienced visitors. While visiting, if any customer
feels unsatisfied, the effect of the review made by customer can affect rating of the company
in social media sites. In this case, hotels needs to maintain their services according to the
information given in their websites along with making those promises only for which they are
capable of. Making false statement at the time of bookings can also be called tricking
customers which has very bad impact in social media marketing for hotel industry (Jitendra,
2017).
Research Gap
In this research paper, advantages and disadvantages of social networking have been studied
from the view point of hotel industries. Knowing impacts of social networking on customers
is also important as to get proper knowledge of this emerging trend. Therefore to make
further research of the topic from customers view point is recommended so that gaining
complete knowledge behind advantages and disadvantages of social networking in hotel
industry becomes probable. While getting publicity, customers might get cheated many times
along with getting fewer facilities than mentioned in social sites. For this issue many
companies have already started monitoring their websites so that making false information
can be avoided to make their brand’s reputation secured in social media sites (Seth, 2012).
Along with it, research on governmental policies and framework can also be made to find out

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whether government has made any provisions in preventing violation of customer’s data in
social networking sites.
Conclusion
The emergence of networking sites and Web allows everyone with limitless amount of things
to be done through internet these days. Internet has not limited its scope for sending and
receiving mails only, but enables sharing unlimited amount of data while browsing web
pages. Many organisations have therefore adopted social media as a part of integrated
marketing plan due to evolution of networking sites like Facebook, Twitter, LinkedIn,
Google+, etc. (Paquette, 2013) Since social media are easily available through internet
connections, recommending it to hospitality industry is feasible. While many of hotel
business have already recognised the importance of social media in their business, still there
are many others who are thinking for its execution. Whether any industry is small or big, to
sustain in the business without effective marketing plan becomes very difficult.
Communication is one of those elements that fulfil the requirement of sharing information
while conveying messages with audience. To remain connected with the customers’, social
networks are an ideal platform which suits perfectly in this ever changing world. To
understand the need for social media in hotel industry, getting knowledge about its
advantages and disadvantages becomes necessary without which their applications may not
seem effective (Lim, 2010). Therefore, on concluding note it can be said that understanding
pros and cons related to social networking is essential for hotel industry to get maximum out
of it for their future growth path.

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