Gaining Competitive Advantage Through Social Media in Hotels

This report investigates how the hotel industry can leverage social media to gain a competitive advantage. It begins with an abstract and table of contents, followed by an introduction highlighting social media's crucial role in hospitality marketing, customer loyalty, and brand image. The literature review explores the importance of social media, its impacts on the hotel industry (both positive and negative, including challenges like privacy and security), and strategies for achieving a competitive edge. The report outlines research methodologies, presents key findings and results, and offers recommendations for effective social media use. The study emphasizes the need for hotels to understand consumer preferences, manage online reputation, and utilize platforms like Instagram, Facebook, and Twitter to promote services, engage with customers, and ultimately, enhance their market position. The report concludes with a reflection and comprehensive references.

How hotel industry can gain
competitive advantage through social
media

Abstract
This study will show importance of social media in taking competitive advantages by
hotels. It also shows some negative impacts and barriers which occur due to social media like
attracting all age group of people, measuring effectiveness, threats of privacy and security.
Further, it will show some strategies to increase effectiveness of marketing strategy and solve
all negative impacts of social media.

Table of Contents
Abstract........................................................................................................................................2
INTRODUCTION.......................................................................................................................4
Background.........................................................................................................................5
Aims and objective.............................................................................................................6
Rationale.............................................................................................................................6
Significance........................................................................................................................7
CHAPTER 2................................................................................................................................7
Literature Review.........................................................................................................................7
Importance of social media................................................................................................7
Impacts of social media on hotel industry..........................................................................9
Strategies to gain competitive advantage via social media platforms..............................11
Chapter 3....................................................................................................................................13
Research Methodologies............................................................................................................13
Key Findings and Results..........................................................................................................19
RECOMMENDATIONS...........................................................................................................28
CONCLUSION..........................................................................................................................28
REFLECTION...........................................................................................................................30
REFERENCES..........................................................................................................................32
APPENDIX................................................................................................................................34
Tame Table.......................................................................................................................34
Questionnaire....................................................................................................................35

INTRODUCTION
For the promotion of business of hospitality, social media plays a very vital role as
large number of online customers are been influenced by the social media. The impact of
social media on hotel business as well as on tourism is very huge. For the selling of the
business as well as for the marketing, various web links as well as websites are been used by
most of the hotels. Therefore, for accessing the guests reach as well as for the advertising for
the business, hotel industry tends to use the social media directly or indirectly in many ways.
Social media does not only promote products and services of an organization but it also helps
them out in increasing customers loyalty and improving relation with them. This increased
relation have direct impact on their brand image which makes them able to take competitive
advantages and making a strong position in the market (Fuchs, 2017). There are several social
media platforms which are being mainly used by businesses and specially by hotels for
promoting their services and attracting wider range of customers such as Instagram, Facebook
and Twitter.
Advertisement of hotel as well as their products is been done through various social
networking sites such as Trip Advisor, Twitter, Facebook and through several other platforms,
thus specially the industry of hospitality has received the positive effect due to the large
platform of social media. Blogs and comments on social media, positive reviews of the
internet user regarding the good reputation of the hotel has helped the hotel in gaining and
developing the trusts with regular clients (Shareef and et.al., 2019). Moreover, reaching new
customers is the great opportunity that has been developed by the social media for the hotel
industry. Additionally, guests or clients are been facilitated by various options to check the
rates, do comparison of the provided services by the hotel as well as for choosing the best
hotel depending on the preference of the location with the direct accessibility which has been
created by the social media. Therefore, fast and easy access to hotels for the purpose of direct
booking is been facilitated by social media. As social media has became the very much part of
the everybody's every day life, so the customers of the hotel industry started preferring as well
as making their selections depending on the reviews they get on the social media sites. Thus, it
could be considered that social media is the tool which could be used as medium for
broadcasting of the business (Raab and et.al, 2016).

Background
Over the past few years, not only the interactions of people but also the interaction of
business with customers is been revolutionized by the social media sites such as Twitter or
Facebook (Larsson, 2018) In order to compete as well as to survive in the current business
environment it is very much necessary to deliver the clear message as well as the keen
understanding to the consumers of the services and products that are been produced by the
industry of hospitality. Therefore, the current statistics shows that, around fifty percent of the
Facebook users are been influenced by their friends preference of choosing the hotel in their
travel plans (Allcott, Gentzkow and Yu, 2019). This study also shows strategies of increasing
sales, attarcting wider range of customers as well as taking competitive advantages with the
help of social media platforms. Providing rewards, discounts and others things for increasing
awareness about digital marketing or using social media which plays an imporatnt role and it
is the main strategy which this study will show.
Additionally, the type of accommodations that has been offered by the hotel company
regarding the information of current situations could be understood through the social media
as most of the people tends to post pictures and videos on these platforms depending their
experience with the hotel. Furthermore, social media helps in promoting the hotel by making
their customer gain knowledge regarding the nearby walkable landmarks or tourists attraction
points through their hotel as now a days guests are not only concerned about the staying in the
hotel but also cares about the fact that what could be done around the hotel. Thus, in this way
the hotel could gain competitive advantage over the other hotels of the industry through social
media. Therefore, these useful tools helps in improving the services provided to the guests as
well as helps in improving the business of the hotel (He and et.al., 2017). Furthermore, before
making decisions regarding the travel needs consumers tends to do online researches for the
purpose to get the best value for money, for this they use these social media tools.
Additionally, in the traditional media, the communication was one way, but social media has
helped the business of hospitality with two way communication by making the consumers to
exchange their views regarding their experience as well as social media facilitated their clients
to have direct conversation with the company of the hotel (Keller, Möhring and Schmidt,
2017). This study is going to show imporatnce of social media in the context of business and
its products promotion with the differebnt views of authors. It will also discuss critical imapcts

of social media platforms on the performance and effectiveness of employees performance of
hotels. Businesses take competitive advantages by communicating with customers, providing
them satisfactory services and making them feel valued by solving their queries. On the other
hand, social media platforms sometimes become the reason of decreased sales of companies as
people visit company's website and reviews all comments and negatuve comments change
their mind. Both impacts is being discussed in this study.
Aims and objective
Aim – “To investigate how hotel industry can gain competitive advantage through social
media” a case study on Holiday inn Sloguh hotel.
Objective
To analyze the importance of social media.
To examine critical impact of social media on hotel industry.
To recommend strategies of how competitive advantage can be gained with the help of social
media.
Research questions
What is the importance of social media?
How social media impact on hotel industry?
What strategies can be followed to gain competitive advantage?
Rationale
The purpose of this research is to know the how the hotel industries had gained
competitive advantages through social media. As through this research the hotel companies
could gain the knowledge regarding the taste and preferences of the guests or clients of the
hotel. What consumers preferred to be serviced by the various offering that has been provided
by the company of the hotel. Moreover, this research will help in making the hotels going of
understanding regarding the impact that social media has created in their business. Moreover,
this has encouraged the hotel company to facilitate their customers with the best possible
services as for the perspective of long term success. It is an interetsing topic as well because
social media is not only being used in business for promoting their products but also is being
used in daily lives and day to day activities. By knowing more about social media, hotel can
take several advantages of it as it can increase its sales. It can also be beneficial at academic
level as well. By getting relevant informations and knowing importance of social media,

researcher can help differently hotels in accomplishing their goals and making effective
marketing strategy by making an effective use of social media. It is an interesting topic and it
is other main reason of selecting this topic as in which area an individual has interest then they
put extra efforts in making the project successful. Additionally, consumers need recognition by
engaging them to share their experience in dialogue with the usage of social media, ultimately
in order to improve the business is been gained through this research (Lee, 2018).
Significance
The significance of this research is to determine how this internet enabled technologies
such as YouTube, Twitter, Facebook, Trip Advisor or etc. has influenced the business of hotel
industry. As social media helps in going the brand awareness among the various other
competitors of the industry. Awareness about Social media and internet is increasing in rapid
manner as most of teh people and businesses are making an effective use of social media for
connecting with customesr and promoting their products. It is rising day by day and choosing
this topic can help students on their academic level as well as business man to commercial
level. By knowing importance and critical impacts of social media they can make better
decisions. Converting potential consumers to the loyal consumers is very much essential for
the company in order to have long term awareness as well as for the brand recognition, thus,
social media is the platform for the same. Therefore, this internet enabled technologies has
been implemented for the enhancement of business (Tajvidi and Karami, 2017).
CHAPTER 2
Literature Review
Importance of social media
In the context of social media, it can be said that it is an essential piece of business
marketing strategy. Technology is increasing day by day and rising importance of social media
is one of the main example of technology which are being used by most of the people. It
allows people to connect and reach others at local, national and international level. In the
context of business, it is stated by Yahia, Al-Neama and Kerbache, (2018) social media is
becoming the main key of the success of many businesses as with its help, businesses are
promoting their goods and services to the national level. Hospitality is one of the main
industry who has made itself beneficial and developed by making an effective use of social
media platforms. Hotels or hospitality industry does not only promote its products and

services to the national level but also get skilled workforces which helps it out in
accomplishing its goals. In addition, it is also stated that social media is supporting in
improving their brand loyalty because with the help of social media platforms, they engage
with customers and provide them satisfactory services. Satisfied and valued customers are
more likely to retain with the company for the long run and if customers retain for the long run
than it has direct impact on improved brand loyalty.
Source: 2019 Social Media Industry Benchmark Report, 2019
In the context of Instagram which is becoming popular as many people use it to the
great extent. It is being used in education, health and care, and other businesses. It is stated
that instagram is mainly being used for advertisement as there are several companies who
upload pictures of their services and products and give all details about it and attract customesr
to visit their website and purchase them.
In addition, in the context of importance of social media for businesses Sajid, (2016)
said that social media help hotels and hospitality industry in increasing traffic and attracting
wider range of customers, Nowadays, people prefer online shopping and want to get all their
products online. There are several hotels which give each detail of their products and
characteristic of services on social media platforms like Instagram, Facebook and others.
People can make effective decision by reviewing them and having all informations about

products and services of hotels. Many hotels and businesses allow people to give their
feedbacks and share their views regarding products and services. By reviewing these views,
customers can measure effectiveness of products of businesses and hotels. One of teh main
reason of online shopping and making an effective use of social media platform is it saves
time and cost of both, customers and businesses. Company can even identify needs of
customers who have visited their Website, they can also identify that which type of products
and services they want to get. By making changes in their services and products as per the
analysis, hotels or businesses can take competitive advantages as well as increase sales. It
becomes easy engagement with customers. It is one of the main key of the success of
marketing, Nowadays, any businesses prefer digital marketing rather traditional marketing
because it helps them in communicating with wider range of customers in an efficient manner.
It can also be said that, Guesalaga, (2016) social media is not beneficial for businesses
or hotels but also useful and effective for customers. For example, if customers face any
problem or challenges in operating their electronic products or others then it can connect with
customer care of that company. There are several hotels and businesses who allow 24*7
customer services facilities to people by which they can solve their problems anytime
anywhere. People do not require visiting shops or hotels directly only because of these social
media platforms.
Impacts of social media on hotel industry
In the context of impacts of social media, it is stated Stone, (2017) that with the help of
social media platforms hospitality industry and hotels is increasing number of booking as
people prefer direct booking through company's website. So, it can be said that Holiday inn
Sloguh hotel can increase its sales by providing this facility to customers. This online booking
facility help customers to choose the best location, reviewing services and compare them with
others. Customers can share products of hotels with their relatives and friends, which are being
presented or shown on social media platforms. It can help Holiday inn Sloguh hotel in
promoting their products by words of mouth or mouth publicity. Company can engage with
customers by sharing their user generated content. For example, if an individual talk about
products of an organization public ally on Twitter then company can retweet as what they said
and use that for increasing brand authority and trust. It can also be said that with the help of
social media platform, Holiday inn Sloguh hotel can take competitive advantages by providing

effective services to customers which can satisfy their needs. By solving their problems and
giving all informations on social media platform, company can engage with them efficiently.
Source: 2019 Social Media Industry Benchmark Report, 2019
From the above it can be said that social media is one of the best way of promoting
products and services of companies. It is mainly used for Sports and teams, advertisement and
influencer. By making an effective use of media, companies promote their product by giving
video and content advertisement.
Verma and Verma, (2017) argued and said that social media does not only have
positive impacts as it has several negative impacts as well. Many businesses or hotels has
option by which people can share their views which may be positive and negative. When other
people who have not visited hotel before they review all comments of existing customers.
When they see negative comments then it changes their mind and influence them by which
they shift to other hotels. So, it can be said that several options of social media can decrease
sales of Holiday inn Sloguh hotel. In addition, it can also be said that there are several people
specially with the age group of 45-60 who do not prefer online booking or shopping which
shows that with the help of social media, hotel can not target all age group of people. People
have trust issues if once they get poor quality of service or different products than shown on

social media platforms, have negative impacts on them. They even share their views with their
relatives and friends which decreases brand image of the company. Sometimes consumers
give false statement by sharing a testimonial experience on their personal impression towards
the hotel. It can have negative impact on those who check company's site for the first time as
they cannot trust sources.
Figure 1Source: 2019 Social Media Industry Benchmark Report, 2019
From the above shown diagram, it can be said that, engagement rate in increasing with
Facebook posts. There are several companies who make an effective use of social media and
mainly Facebook. They upload some pictures having all details of products and services. So, it
can be said that Facebook is one of the main effective social media platform which are being
used by many companies.
Strategies to gain competitive advantage via social media platforms
It is stated that competition is increasing rapidly in hotel industry due to advanced
technology as hotels are making use of social media platform for marketing like Facebook,
Instagram by updating pictures and attract customers (Gil-Soto and et.al., 2019). It is
important for Holiday inn Sloguh hotel to adopt some effective strategies in order to attract
customers to the great extent and make an effective position in the market for competing with
rivals. As per the Candi and et.al., (2018) resolving customers problems by employing an