A Case Study: Social Media Impact on Business Growth in Hospitality

This research project investigates the impact of social media on business growth within the hospitality industry, using Thomas Cook Group Plc as a case study. The study begins with an introduction outlining the research background, objectives, and questions, followed by a discussion of the factors influencing the research topic. Chapter 2 provides a comprehensive literature review exploring the significance of the internet, social media applications, and their pros and cons. The research methodology, including interviews with managers, is detailed in Chapter 3. The project analyzes data and presents interpretations of employee responses in Chapter 4. The final chapter offers conclusions, recommendations, and references. The study aims to determine how social media affects hospitality firms' performance and growth, suggesting strategies for attracting more customers through these platforms. The literature review highlights the importance of the internet for information sharing and the role of social media in marketing, customer engagement, and brand awareness, while also addressing potential drawbacks such as the need for proper IT infrastructure and managing negative feedback.

RESEARCH PROJECT

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION..............................................................................................1
Title of the study....................................................................................................................1
Research Background.............................................................................................................1
Research Objective.................................................................................................................1
Research Questions................................................................................................................2
Factors that contribute towards the selection of research project..........................................2
Problem statement..................................................................................................................2
Time Plan...............................................................................................................................2
CHAPTER 2: LITERATURE REVIEW...................................................................................4
LITERATURE REVIEW...........................................................................................................4
Introduction............................................................................................................................4
Significance of Internet within Business Organization..........................................................4
Social Media and its Application...........................................................................................5
Pros and Cons of Social Media..............................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.......................................................................8
Interview of managers..........................................................................................................12
Interpretation and Analysis..................................................................................................13
Interpretations of employee’s responses..............................................................................14
CHAPTER 5: CONCLUSION & RECOMMENDATION.....................................................19
Recommendation..................................................................................................................20
REFERENCES.........................................................................................................................21
Books and Journals..............................................................................................................21

CHAPTER 1: INTRODUCTION
Title of the study
To examine how social media can impact a business growth: A case study on Hospitality
industry: Thomas Cook group Plc.
Research Background
According to Boyd and Ellison (2007) social media is gaining popularity and
increasingly used in several business operations of many companies. Here, most of the
companies are gaining popularity by increasingly using different social media tools.
Nowadays, there are most of the emerging technologies which are gaining popularity as tools
are to enable the cooperation among business in business network. Traditionally, the business
growth and performance is measured by establishing a set of key performance indicator,
balance scorecard etc. These methods have been used by most of the companies to analyse
their business performance and growth. With the changing time and rapid development of
social media companies are using it as a tool to expand their business. Champoux, Durgee
and McGlynn (2012) stated in his article that there are some of the most common factors such
as rapid development of applications, innovation etc. which influence the organizational
capabilities.
In addition to this, companies are able to communicate and coordinate with their
worldwide customers and maintain better relations with them. According to Evans (2010)
different platforms are provided by the social media networks such as Facebook, Twitter and
LinkedIn etc. With the help of these tools organizations can easily go through the appropriate
marketing of their products. In this regard, the purpose of this study is to go beyond the role
of social media as well as its impact on the growth of business. For this, hospitality industry
is taken into consideration in which analysis takes place on the basis of Thomas Cook Plc. It
is of the leading British travel and tourism group and listed in the London stock exchange.
They basically own number of tour operators as well as charter airlines based in UK. Further,
this study gives brief description about the impact of social media within the Thomas Cook
group and how it helped them in enhancing their travel activities.
Research Objective
 To examine the rise of internet and its importance for business organizations
 To identify the benefits and drawbacks social media in the performance of company
 To determine the ways through which social media impact the performance and
business growth of hospitality firms
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 To recommend various ways through which social media can attract more number of
people.
Research Questions
 How performance and growth rate of organizations are affected by social media?
 What are the major benefits and drawbacks social media?
Factors that contribute towards the selection of research project
At the time of selecting the present research topic there are various factors which
motivated me to go through this. These factors are as follows:
Topic is current issue: This is the major factor which contributed towards the
selection of research topic. Social media is the vast and increasing area of research.
Nowadays most of the people are highly attracted towards the different social media activities
(Jonker and Pennink, 2010). It is the major factor due to which appropriate data can be
gathered and people can also give better responses about the use of social media.
Researcher’s interest: Another major reason for selecting this research topic is the
interest of researcher. The area which has been selected for the research is quite interesting
due to which researcher highly contributed towards it.
Problem statement
The present study is based on the hospitality industry which tends to be very customer
centric and also feels pride itself by providing quality services to their customers. At the time
of traditional marketing, lifestyle of people were highly saturated by the print media, radio
and television. The major negative effect of this media is high costing and one way
communications. In addition to this, social media encourages customer engagement and also
allows faster response and low cost investment. At the time of using social media one of the
major problems faced by companies is to develop a proper IT infrastructure. It requires high
costing to set up the whole infrastructure. Further, negative information and comments can
also destroy the brand image of company. Moreover, it has been considered as a major area
of problem faced by companies while using social media.
Time Plan
Activity 1th
Week
2nd
Week
3rd
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4t
Week
5th
Week
6th
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7th
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8th
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9th
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10th
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ek
Drafting
Research
Proposal
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Literature
Review
Setting
aims and
objectives
Drafting
literature
review
Drafting
of
methodolo
gy
Developin
g
questionn
aire
Collection
of Data
Analysis
of Data
Draft
Findings
Analyse
data
Remainin
g
chapters
completio
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CHAPTER 2: LITERATURE REVIEW
LITERATURE REVIEW
Introduction
This section is developed for undertaking the discussion on past literature so that
conceptual base can be developed through it. This aids in conducting the research in an
effectual manner by identifying the key information related to research topics. Also, it helps
reader in gaining basic knowledge about the subject. Present literature review focuses on
social media and its role in boosting the growth of the company.
Significance of Internet within Business Organization
Boyd and Ellison, (2007) stated that internet is one of the key facilities that helps in
sharing information and data to varied individual in real time. It certainly helps organization
in completing its operation task in desired manner such as recording data, developing fact
sheets, offering services to customers, evaluating past performance, taking corrective
decisions and other related. Further, Haydon, Dunay and Krueger, (2012) commented that
businesses need to communicate with their customers on regular basis and internet is act as a
path for doing this things. Company with the help of email and websites can able to share
crucial information to customers through which more of customers are attracted towards it.
Supporting the viewpoint of Haydon, Dunay and Krueger, (2012), it can be state that internet
helps in sharing information over platform like social media and company websites from
which customer gains information regarding offers and schemes.
In addition to it, Parmelee and Bichard, (2012) found that internet helps in developing
a platform where company is able to work in a common manner. In this regard, company is
able to improve their customer’s service and responses to the problems and grievance of the
customers. Additionally, it act as a mode from which customer can buy product or service
which essentially boost the growth of the company. However, it can argued by Saw and et.al.,
(2013) that company needs to develop proper IT infrastructure so that it can gain benefits
through it. It incurs huge initial investment which small and medium scale company doesn’t
afford and hence they are not in state of taking benefits from it. Hence, it can state based on
this discussion that internet plays a significant role in modern day business and also supports
in gaining opportunities that exist in external environment. Information is one of the key
thing that business enterprise needs to communicate to interest group or regular basis, this
becomes possible through internet that also helped in attaining business objectives (Kazmi,
2007).
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Social Media and its Application
In the present era, social media plays a significant role in making contact with wide
range of people at a same time. Barrigar, (2009) commented that there are different types of
ways from which company can take support from social media. In this context, company can
post message and images on social media i.e. Facebook, YouTube and other related. Through
this, large number of customers can be contacted and information can be shared in effectual
manner (Mackey and Gass, 2005).
Also, social media aids in making marketing communication through which sales
volume of the company gets increased. This is so because real time communication is
possible from this source that aids in making contact with online users (Demers, 2014). Also,
study of Lüsted, (2011) found that there are significant rise in the internet user in 21st century
and 76% of them access to social media on daily basis. Due to this starts, social media has
been developed as a key platform through which company is able to make relationship with
customers.
In this regard, study of Barnes, (2008) has found that company through social media
can make two way communications from which reviews and feedbacks of customers are
attained towards the company and the services. Based on it, corrective measures can be taken
and hence effectual services can be offered. This certainly helps in retaining the customers by
fulfilling the actual needs of the customers. In addition to it, company can even ask for the
review of new products or services so that it can be developed even better. This somewhere
saves the cost of market research for the company (Champoux, Durgee and McGlynn, 2012).
On the other hand, Casteleyn, Mottart and Rutten, (2009) conclude that by social
media is a mode where company can spread the awareness among target customers. In this
context, company like Samsung, Sony and others post the teaser and images of the new
products that are about to launch in market so that they can grasp the attention of target
customers. Through this, high support is attained by the company and it essentially aids in
boosting the overall sales volume.
Moreover, Liebowitz, (2007) found that social media like Facebook offers numerous
option for promotion which makes it one of the prominent places for marketing. Here,
company can make their page through which they can post information related to upcoming
products and other news so that regular communication with customers can be done. In this
context, images, status, videos and creative graphic can be shared for boosting the
relationship of customer and company. This aids in attaining an edge over other rivals
(Phelan, Chen and Haney, 2013).
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Also, study of Levy, (2010) concluded that social media is a cost effective platform
that helps company in saving their cost. Further, it aids in reaching to large number of
customers all at once which is another significant factor of social media. From this, brand
awareness of company is increased and hence they are able to gain high business from target
market. This certainly aids in boosting their growth and it offers path for expanding into new
areas as well. Another application of social media is to offer prizes to existing customers so
that loyalty can be attained through it. With the help of it, better relations with customers is
developed that aids in gaining more of business in the coming years (Evans, 2010).
Pros and Cons of Social Media
With the change in time, majority of company is focusing on social media for the
purpose of doing promotion. This is so because users on social media websites are increasing
daily and hence developing a base of customers. In this context, O'Reilly and Milstein, (2009)
analyzed that marketing through social media is proved very effective as it helps to reach
customers irrespective of geographical boundaries. Further, Partridge, (2011) found that
social media is a platform that offers collaboration and communication through which wide
range of information can be shared in effectual manner. Through this, customer can actual
discuss about their experiences with company on this from which other potential customer
buys the product and services.
It can be state that social media has emerged as a mode of word of mouth marketing
from which business growth is attained. Further, Barrigar, (2009) stated that it helps in
reaching to more people in very quick manner from which huge base of customers can be
developed. From this, real time communication can be made that aids in attracting large
number of customers.
Beside this, study of Champoux, Durgee and McGlynn, (2012) found that company
can save around 53% of their marketing cost by adopting internet marketing wholly. In this
context, social media is one of the most prominent part of internet marketing and hence
company can certainly save their marketing and research cost by focusing majorly over this.
Hence, it is evident that social media aids in saving cost of the company that essentially aids
in boosting the growth rate.
Apart from it, Mackey and Gass, (2005) stated that company gain high loyalty if they
are engaging into social media. This is so because it aids in making contact with customers in
interpersonal manner. Also, it develops sense of belongings among customers which will
influence them in purchasing the product from that company only. Moreover, study of
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Partridge, (2011) revealed that social media offers benefits in terms of rise in inbound
traffic.in simpler word, traffics on the website of the company can be increased through
social media marketing. From this, overall sales get increased and hence this aids in attaining
the business objectives.
However, there are certain drawbacks of using excessive social media for the
company. Kazmi, (2007) commented that company can face issue of negative promotion on
social media that can affect the brand image of the company. Anyone on internet can post
comment against the company that leads to loss of people from the company. In addition to it,
social media is only confined till internet users only and hence it does not influence non
internet users. Moreover, internet users can also be access the marketing content only if they
are active. Hence, it can state that social media doesn’t reach to each and every customers
from which its effectiveness gets hampered. Also, study of Evans, (2010) identified that
company need to develop creative and attractive advertising content for marketing or else
customers will get shifted to other company. Hence, this activity consumes huge cost that
affects the profitability of the firm as well. Parmelee and Bichard, (2012) further found that
there is huge rivalry on the websites like Facebook from which customers gets distracted.
Through this, company is not able to influence the target customers due to which whole
efforts of marketing goes waste.
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CHAPTER 3: RESEARCH METHODOLOGY
This section is considered to be most important sections of any research. Here, the
researcher can easily identify ways through which appropriate data can be gathered as per the
given subject matter. For this, various techniques are incorporated such as:
Research Philosophy:
This technique can also be defined as a blueprint of study in which researcher can
evaluate the best suitable information as per the given topic. Basically there are two types of
research philosophies i.e. Interpretivism and positivism and both of them applied in a
different context and scenario as per the given situation (Jonker and Pennink, 2010). Here, in
this present study, Interpretivism philosophy is regarded as a most suitable one as no
hypothesis is being developed. By the way of incorporating this technique, researcher can
find out most important facts about the impact of social media on the business growth. It also
determines that how companies can enhance their growth rate by adopting best suitable social
media tools.
Research Approach:
It is the most effective method by which researcher can follow the correct path for the
selected research study. By selecting the most suitable approach researcher can easily carry
out obtain effective and desirable results. In this regard, there are two types of approaches i.e.
Inductive and Deductive (Bernard, 2011). Inductive approach helps the researcher in
obtaining appropriate theories regarding the given subject matter. Before this, appropriate
data can be gathered that are relevant to research aims and objectives. On the other hand,
deductive approach will be incorporated at the time of hypothesis development or when
quantitative study takes place. Further, it can be determined that Inductive approach is most
suitable in the present study. With the help of taking it into consideration researcher is able to
draw appropriate conclusion on the basis of qualitative analysis.
Apart from this, another reason for incorporating this approach is that it essentially
supports in gaining knowledge about the impact of social media on the business growth
(Fiegen, 2010).
Research Design
It is another most crucial element of methodology which highly supports in gaining
better understanding about the given subject matter. With the help of selecting most suitable
design researcher is able to decline the probability of misleading and wrong interpretation
(Cooper and Schindler, 2011). In addition to this, it can be stated that it is another most
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effective design which supports the researcher in taking effective decisions about other type
of methods such as nature of data, sampling techniques, various ways to analyse the data etc.
However, there different types of research designs such as exploratory, case study,
experimental, descriptive etc. (Zikmund and et.al, 2013). From all of these designs specific a
suitable design is incorporated in different studies as per their nature.
As per the concern of the present study, descriptive research design is taken into
consideration as it helps in going through the deeper insights about the given subject matter.
This technique is incorporated as information got attained by utilizing empirical methods
such as observations, interview, survey etc. In this regard, it can be stated that it is the most
suitable and effective type of research methodology since this study focuses on the impact of
social media on the business performance as well as growth (Neergaard and Ulhoi, 2007).
With this regard, appropriate analysis takes place so that fruitful results can be acquired.
Data collection
This is the most important area of research methods as it helps in determining the best
possible ways through which data will be gathered in a more effective way. For this, primary
and secondary are two major sources through which appropriate data about social media can
be gathered (Denzin and Lincoln, 2011). In this regard, primary data will be gathered by the
way of using different techniques such as survey, interview etc. On contrary, secondary
sources includes all the online sources such as past studies data and information, online
articles, books etc.
Further, it can be stated that in the present study primary sources are taken into
consideration for gathering most suitable and required data. In this regard, Questionnaire
survey and interview technique is incorporated in order to collect most suitable information
from the employees and managers of Thomas Cook. For this, 5 managers and 50 employees
are selected (Marlow, 2010). In this, employees can give proper information about the
increasing role of social media and its importance for their firm. They must have to answer
the given questions in the survey. On the other hand, managers can elaborate that how it
affects their business growth in a positive or a negative way. For this, face to face interview
takes place on the basis of which different responses of managers can be gathered. Moreover,
it can be stated that with the help of incorporating interview and survey technique proper
information can be attained. With the help of this, better findings can be drawn (Gobo, 2004).
Sampling
This is the most essential technique which helps the researcher in narrow down the
whole population and selecting the required one (Fiegen, 2010). It saves a lot of time to
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researcher by selecting most desirable respondent for collecting data. Moreover, it can define
that it confines the focus area for data collection and also offers several strategies through
which intricacies can be reduced. Here, there are mainly two types of sampling techniques i.e.
probabilistic and non-probabilistic. In the present case, probabilistic method of sampling is
taken into consideration as arbitrary selection is entailed in order to select the sample from
whole universe (Gobo, 2004). Under this, simple random sampling technique is incorporated
under which 50 employees of Thomas Cook and 5 managers are being selected. They can
give better response about the social media and its impact on their business growth.
Data Analysis
This is another major step for drawing an appropriate conclusion as well as findings.
For this, data can be analysed by the way of qualitative as well as quantitative techniques
(Quantitative and Qualitative Evaluation Methods, 2007). Qualitative techniques helps in
analysing the data and framing appropriate findings by the way of using different techniques
such as thematic analysis, graphical representation etc. On the other hand, quantitative
technique helps in analysing the gathered information by the way of using numeric methods
and techniques such as MS-Excel, SPSS and Correlation-regression etc. (Jonker and Pennink,
2010). Here, in this present study qualitative technique is taken into consideration in order to
analyse the present gathered data. Data under this is record, analysed and evaluated with a
motive to discover proper consequences of human experiences. This technique has been
selected as the area of research is specific to the hospitality firms. All the information
acquired from managers and employees can be analysed by the way of thematic analysis as
well as graphical representations. This is the most effective way to analyse the data and find
out appropriate solution from it. With the help of this, researcher is able to frame most
suitable conclusion as per the findings (Golafshani, 2003).
Ethical consideration
In order to accomplish any research it is quite essential for researcher to go through
all the ethical aspects and considerations. With the help of following all the ethical norms
probability of misleading of information can be reduced. Here, in this present study,
researcher has followed all the ethics (Merriam, 2009). Before taking interview and accessing
information from the respondents, a consent form was attached along with the self-stamped.
It clearly determines that all the information given by the self-concern of respondents. It is
essential that all the gathered information is to be maintained with full anonymity and
confidentiality. This enables to take the permission of the participants in appropriate manner.
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