Analyzing the Impact of Social Media Marketing on Hotels' Finances

This report investigates the impact of social media marketing (SMM) on the financial performance of the hospitality sector, specifically focusing on Hilton Hotels. The study explores the influence of SMM on various aspects such as revenue generation, customer acquisition, brand awareness, and customer loyalty. It examines the use of different social media platforms like Facebook, LinkedIn, and Instagram for advertising and promotion. The report includes an overview of the research methodology, literature review, data analysis, and findings. The research questions address the factors impacting financial health, the positive contribution of SMM, and the impact of SMM on growth and profitability. The report also provides recommendations for Hilton Hotel to enhance its profitability through effective social media marketing strategies, including the analysis of costs, benefits, and customer engagement metrics. The findings highlight the increasing importance of SMM in the modern hospitality industry and its significant role in influencing financial outcomes.

Impact of Social Media Marketing on the financial
performance of hospitality sector

Acknowledgement
I am grateful to all of those with whom I have had the pleasure to work during this and
other related projects. Each of the members of my Dissertation Committee has provided me
extensive personal and professional guidance and taught me a great deal about both scientific
research and life in general. Nobody has been more important to me in the pursuit of this project
than the members of my family. I would like to thank my parents, whose love and guidance are
with me in whatever I pursue. They are the ultimate role models. As my teacher and mentor, he
has taught me more than I could ever give him credit for here. He has shown me, by his example,
what a good scientist (and person) should be.

Abstract
Advancement in technology has boosted the work of business across the globe. It enables
use of the simplest functioning and management approach to different sectors of world. The
technological changes of modern era have transformed manual work into automation because of
the above overview clear presents a background over effectiveness of social media advertising in
meeting customer expectation which is the best way to manage financial performance of an
organization. Thus, the study will outline specific objective with relevance to marketing of social
media and its significance of financial performance of hospitality sector. The research will be
based on objectives, question and hypothesis which will assist in outlining dependency of
individual variable on each other.
Hilton hotels are leading hotel chain serving hospitality services across the globe. The
services of hotels are consumer centric like there are different types of rooms according to
different type of guest like premium deluxe, etc. It comprises discussion and use of research
philosophy, approach, type and design. In addition, it included data collecting and analysis tools
which are used by researcher for exploring research topic, aim and objectives. Like deductive
approach is used by research to frame hypotheses and interpretivism and positivism both type of
philosophies will be used for effective interpretation of results and findings.
That about need of considering social media advertising like it helps the marketing team
of company in generating leads which helps in deriving call to action and effectiveness of
marketing campaign. Further, social media promotion increase visibility of firm which helps the
business in creating brand awareness and earning customer loyalty. By analysing data, it can be
evaluated that Hilton hotel have transformed the way of advertising their services. Now, they are
highly focused on social media to generate revenue and attract people. This way of advertising
has highly influenced overall hospitality sector. It is playing a significant role in increase or
decrease in sales or profits. But the major impact it has is on financial performance of hotel.

TABLE OF CONTENTS
TITLE..............................................................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of the study...........................................................................................................1
1.2 Aim........................................................................................................................................3
1.3 Objectives..............................................................................................................................3
1.4 Research questions................................................................................................................3
1.5 Research hypothesis..............................................................................................................3
1.6 Rationale of the study...........................................................................................................4
1.7 Significance of study.............................................................................................................4
1.8 Scope of study.......................................................................................................................4
1.9 Chapter Structure..................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
2.1 Social media marketing.........................................................................................................7
2.2 Impact of social media marketing on financial performance of Hilton hotel.....................10
2.3 Impact of social media marketing on growth of hospitality industry.................................13
2.4 Factors of social media influencing performance of organization......................................15
2.5 Recommendation for increasing profitability position through social media marketing....17
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................19
3.1 Introduction.........................................................................................................................19
3.2 Research philosophy...........................................................................................................19
3.3 Research type......................................................................................................................20
3.4 Research approach..............................................................................................................21
3.5 Sampling.............................................................................................................................22
3.6 Data collection....................................................................................................................23
3.7 Data Analysis......................................................................................................................24
3.8 Ethical consideration...........................................................................................................25
3.9 Reliability and validity........................................................................................................26
CHAPTER 4: DATA ANALYSIS................................................................................................28
4.1 Analysis...............................................................................................................................28
CHAPTER 5- DISCUSSION AND ANALYSIS..........................................................................41

5.1 Discussion...........................................................................................................................41
5.2 Analysis...............................................................................................................................42
CHAPTER 6: CONCLUSION......................................................................................................45
6.1 Conclusion..........................................................................................................................45
6.2 Recommendation................................................................................................................48
REFERENCES..............................................................................................................................50
APPENDIX....................................................................................................................................56

TABLE OF FIGURE
Figure 1: Positive influence of SMM on financial performance of hotel......................................28
Figure 2: Type of SMM techniques used by hotel........................................................................29
Figure 3: hotel have retained their customers through SMM........................................................30
Figure 4: There is increase in percentage of profits due to SMM.................................................31
Figure 5: More number of people attracted due to SMM rather than traditional marketing.........32
Figure 6: ROI have increased with investment done in SMM......................................................33
Figure 7: hotel have maintained their financial stability by using SMM......................................34
Figure 8: using SMM is beneficial for hotel in increasing profits for long term...........................35
Figure 9: new customer acquired through SMM has contributed in revenue................................36
Figure 10: adopting of SMM reduced cost of customer acquisition in your hotel........................37
Figure 11: Average cost per month of running SMM on various social media platforms............38
Figure 12: SMM have helped in reducing customer retention cost and rising profits..................39
Figure 13: Cost incurred monthly on mitigating risk in SMM......................................................40

TITLE
“Impact of Social Media Marketing on the financial performance of hospitality sector”
CHAPTER 1: INTRODUCTION
1.1 Overview of the study
Advancement in technology has boosted the work of business across the globe. It enables
use of the simplest functioning and management approach to different sectors of world. The
technological changes of modern era have transformed manual work into automation because of
which it is becoming easy for companies to manage successful business operations (Alhabash,
Mundel and Hussain, 2017). Digitization of business functions aid various department of an
enterprise like cloud computing, which is an effective tool for administration department.
Further, there are social media and online advertising option which is use by marketing and sale
department to boost performance and sales of an entity.
The study is focused on evaluating influence of social media marketing on financial
performance of hospitality sector. In accordance with this, it can be said that spending on global
social advertisement has been doubled from 16 billion $ to 31 billion $ by 2016 (Lipsman and
et.al., 2012). There are different social media platforms where firm is able to market its product
and services via advertisement. Social networking marketing is done on platforms like, Linked
In, Google+ and Facebook whereas micro blogging is done on Tumblr and twitter. However,
photo sharing advertising is done on Snap-chat, Pinterests and Instagram while video sharing is
done via Facebook live, YouTube, Vimeo and Periscope.
Apparently, social media advertising is considered as most approachable way of
marketing companies products and services because it helps business in managing consumer
traffic. It offers direct communication with customers which helps business in determining
individual expectation. Developing understands over consumer needs, wants and preferences is
the best way for the hospitality sector to boost financial gains and profitability. Likewise, it can
be said that advertising on social media come up with various benefits like, it assists in growing
fan base and sales (Whiting and Williams, 2013). Further, it promotes consumer attention as in
this company focuses on generating content by incorporating needs and preferences of potential
purchaser of certain service of commodity. Moreover, the digital marketing support targeting and
returning of customer without involvement of much money therefore it is considered as cost
effective technique of promotion.
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In contrast, Facebook is considered as universal social network which comprise 2 million
trustworthy users. The Facebook advertising cost 1$ per use which is the best way to target a
million of buyers at one platform (Leung, Bai and Stahura, 2015). The advertising campaign of
Facebook is based on three simple steps that is setting up advertisement, targeting and re
targeting. The advertising on social media is based on few objectives that are awareness
objectives. For example, marketing team of Hotel Hilton is focused on increasing reach and
creating brand awareness to attract worldwide travellers. On the other hand, campaigning is
done for consideration and conversion objectives wherein consideration is based on managing
consumer traffic on official website, promoting engagement of guests, encouraging
communication with potential buyers (Buhalis and Mamalakis, 2015). On the other hand,
conversion is based on developing catalogue to boost sales which is ultimately related to
improvement in financial performance of company.
The above overview clear presents a background over effectiveness of social media
advertising in meeting customer expectation which is the best way to manage financial
performance of an organization. Thus, the study will outline specific objective with relevance to
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Illustration 1: Monthly users of social networking sites
(Source: Jolly, 2018)

marketing of social media and its significance of financial performance of hospitality sector. The
research will be based on objectives, question and hypothesis which will assist in outlining
dependency of individual variable on each other.
Hilton hotels are leading hotel chain serving hospitality services across the globe. The
services of hotels are consumer centric like there are different types of rooms according to
different type of guest like premium deluxe, etc. Further, the firm provides extra luxurious
facility to protect interest of travellers like, spa, bar, restaurant, gym, etc. In accordance with
premium and luxurious services it is important for the business to make use of appropriate
marketing technique to maximize financial returns. However, advertising on social media
platform can be effective and beneficial for the hotel chain because it helps in managing time and
cost effective promotion of services (Floreddu, Cabiddu and Evaristo, 2014).
1.2 Aim
“To investigate the impact of social media marketing on the financial performance of
hospitality sector: A study on Hilton Hotel”.
1.3 Objectives
 To investigate influence of social media marketing on financial performance of Hilton
Hotel
 To identify factors of social media influencing performance of organization
 To assess impact of social media marketing on growth of Hilton Hotel
 To recommend ways to Hilton Hotel for increasing profitability position through social
media marketing
1.4 Research questions
1. Which factors have major impact on financial health of Hilton Hotel?
2. Does social media marketing positively contribute to success of organization?
3. Discuss the impact of social media marketing on growth of Hilton Hotel?
4. How social media advertising can assist hotel Hilton for increasing profitability
position?
1.5 Research hypothesis
 H0 There is significant relationship between social media marketing and financial
performance.
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 H1 There is no significant relationship between social media marketing and financial
performance.
1.6 Rationale of the study
The reason behind choosing social media marketing its relation with performance of
organization and direct interaction with customers. Social media advertising is itself a wide topic
where scholar will be able to explore various aspects such as technological advancement,
automation, content requirement, online conversions, targeting options, etc. (Cabiddu, De Carlo
and Piccoli, 2014) Promoting goods and services on social networking site is an effective
approach to boost sales and gain financial returns. Further, the study is for academic purpose
where learning are knowledge are the crucial aspect for conducting this research, it will help in
boosting learning over different areas of research project like, methodological tools, secondary
facts and findings, etc. In addition, the motive behind choosing this project is personal interest
because advertising on social media is advanced approach that helps firm in managing direct
communication with its customer which is the best way to meeting customer expectations.
1.7 Significance of study
The study is significant is own way as it is based on two different variable which are
interconnected with each other. The hypotheses of the study is framed with the motive of
deriving significance of individual variable and with each other that is social media marketing
and financial performance and influence of digital marketing on profits of hospitality sector.
Further, the research is important because it is for academic purpose and will help in boosting
learning over different concepts of research. In addition, it is important because it will help in
determining need of marketing hospitality services to improve financial performance of business
that is Hilton Hotel.
1.8 Scope of study
The research topic and aim is very wide and therefore it will help in exploring different
related topics which will help in gaining insight over different headings such as, digital
advancement, social networking site, search engine optimization, hospitality industry, marketing
and financial performance (Verma, Stock and McCarthy, 2012). The inclusion of different heads
is effective because it will help the scholar in further studies which are relevant to digital
marketing an advancement. Moreover, the scope of study is based on entire hospitality industry
and specify Hilton hotel which will aid the investigator in developing critical research findings.
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1.9 Chapter Structure
Chapter 1 Introduction: This chapter is based on outlining overview of the study and
topic. In this focus of researcher is on developing little understand over research topic for
conducting entire study. It is based on formation of research aim and objectives which act as
base on entire findings and discussions. In addition, the chapter is discussion of reason and
importance of choosing particular topic like in this scholar derived that motive behind choosing
influence of social media marketing on financial performance of Hilton hotel is wide scope of
learning and boosting knowledge.
Chapter 2 Literature review: IT is the discussion of secondary facts and findings which
are collected by different scholars. It is based on different articles, books, journals, blogs, etc.,
which re based on research topic. In this, it is important for the investigator to make use of
appropriate keywords which helps in relevant and viable research. Further, for making
systematic literature review the scholar forms themes which are based on research objectives and
question. Thus, it can be said that this chapter helps in developing critical understanding over all
objectives and aim of study which makes further discussion simplified.
Chapter 3 Research methodology: This chapter is based on implication of research
tools which helps researcher in analysing, collecting and simplifying gathered information. It
comprises discussion and use of research philosophy, approach, type and design. In addition, it
included data collecting and analysis tools which are used by researcher for exploring research
topic, aim and objectives. Like deductive approach is used by research to frame hypotheses and
interpretivism and positivism both type of philosophies will be used for effective interpretation
of results and findings.
Chapter 4 Data analysis & Interpretation: This chapter is based on information
collected by scholar where the focus of researcher is outlining views of sampled respondents.
This is critical phase of dissertation because it will help in gaining insights of research aim and
objectives. This ill conducted in form of thematic analysis which will helps in specifying every
collected information on the basis of critical analysis. This chapter will assist scholar in arriving
at one conclusion on the basis research questions and hypothesis. Thus, it can be said that this
chapter helps the researcher in deriving purpose of conducting research and aid in making
relevant decisions.
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Chapter 5 Conclusion and Recommendations: It is the summary of entire study which
helps in valuing collected information. It is the outline of every important at information
outlined or collected by scholar. The conclusion will be descriptive on the basis of chapters
which will make clear assumption of over every information collected and analysed. Thus, it is
the outline of dissertation on the basis of which researcher is able to make recommendation for
further improvement with regard to research aim, objectives and questions.
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