E-Tourism: Social Media & Mobile Tech

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This essay critically evaluates the development of social media and mobile technology within the hospitality industry. It begins with a literature review examining the impact of social media platforms (Facebook, TripAdvisor, etc.) and mobile technology on attracting customers, building reputation, and improving customer service. A case study of Red Carnation Hotels is presented, analyzing their use of Pay-Per-Click advertising and presence on review sites like TripAdvisor. The essay discusses the advantages and disadvantages of these strategies, highlighting challenges like negative reviews and click fraud. Finally, it proposes a social media strategy for Red Carnation Hotels, including mobile check-in, increased social media presence, a mobile application, and enhanced Facebook engagement to improve customer experience and brand awareness.
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E – TOURISM
“Critically evaluate the development of Social Media and
Mobile Technology in Hospitality Business”
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Contents
Introduction......................................................................................................................................3
Literature Review............................................................................................................................4
Social media and hospitability.....................................................................................................4
Mobile technology and hospitability...........................................................................................5
Social media tools and their application to hospitability industry...............................................6
Case study........................................................................................................................................8
Current social media presence.....................................................................................................9
Discussion......................................................................................................................................10
Development of social media strategy for Red Carnation hotel....................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
APPINDEX....................................................................................................................................16
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Introduction
In the present era, technology has become an integral part of day to day life and
organizations are using information and communication technology (ICT) to improve their
business practices. The development of Social Media has positively influenced the way of
offering services within hospitality industry and it provides an effective platform to engage in the
activities of marketing. Within today’s dynamic business environment, it become crucial for the
organization to focus on improving services to end users, along with the quality of business
processes (Zeng and Gerritsen, 2014). Here, Social media is long been argued to be an effective
platforms for small and medium business to integrated their marketing. The use of social media
platforms infuses a mix of advertisement, public relations, sales promotion that enable hospitality
organizations to create influential messages to attract target customers and to encourage guests to
visit hotel.
On the flip side of a coin, mobile technology has seen with an incredible growth in all
areas of business which enable hospitality companies to make improved offering to guests and
attract them towards services. The growth of mobile technology is supported by a phenomenal
growth in adoption of tablets and smart phones. In this aspect, mobile presence has become
critical for hotels as social media presence (Hvass and Munar, 2012). The present study is focus
on critically evaluating the development of Social Media and Mobile Technology on Hospitality
Business. The major part of this report includes literature review that is going to present the
information about the role and development of social media and mobile technology on
hospitality business, along what their importance in business. For the completion of present
report, a leading medium size hospitality organization of UK namely “Red Carnation Hotel” is
taken into consideration. Furthermore, this report is going to discuss about current social media
presence of cited company as well as its important of business development in which respect a
critical discussion is made. On the basis on an analysis, social media strategy is designed for the
development of Red Carnation Hotel.
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Literature Review
The section herewith is going to conduct a secondary investigation for which various
sources of secondary data collection are used. To collect information various sources such as
books, journals and online articles are being used. It includes the findings of the studies
conducted by various authors in regard to the use of social media and mobile technology within
hospitality industry.
Social media and hospitability
According to the words of Elefant (2011, p. 4) Social media mentioned as a phrase that
describes technology to facilitate interactive information along with user-created content.
(Elefant, 2011). The social media tools are Wikipedia, Facebook, YouTube, and TripAdvisor
etc, which are used to facilitate promotions of hospitality businesses.
The investigation carried out by Starkov and Mechoso (2008) found that social
networking sites are putting unique implications for the hospitality industry and helps in
developing a unique platform to attract target customers. Use of these sites provide an effective
platforms to generate, monitor, and evaluate reputation and goodwill of business. The author has
further said that online consumer-generated content is perceived to be highly credible and
reliable, in case, it is posted on reliable social websites. The business entities are creating their
images at social media platforms by using SNS and associated tools (Starkov and Mechoso,
2008).
To the view point of Kasavana, Nusair, & Teodosic (2010) the participation on online
companies in online social networking is witnessed to be cost-effective and an effective way to
interact and engaged with potential clients. Participating in social websites, the businesses can
directly access the response of active users without. The social sites are easily accessible and
attracts business to get engaged with target customers in a unique way. The author found that the
hotels in today’s era along with other hospitality business holders such as restaurants and
travelers are entered in social network space. This has been brought out by the author that
hospitality businesses has been proactively interacting with their guests, in the way by coming
with innovative customized solutions and use of social networking so as to prompt customer
service (Kasavana, Nusair, & Teodosic, 2010).
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The findings of Green (2009) represented that the reviews provided by the customers on
the online sites is the major reason of using SNS to the promotion of services. In other words, it
can be said that online consumer’s reviews play a crucial role in the selection of social sites by
hotel and travel consumers. The development of various websites such as Yelp, TripAdvisor
along with various social networking sites including Facebook, MySpace have provided a chance
to potential consumers to give their views about hotel services. On the other hand, it also
provides a chance to the companies to get accurate views about their services so that the services
can be improved. The use of social networking sites promotes competitive advantages of a firm
in the field of marketing and creating brand recognitions. The unique social networking sites to
provide a chance to guests to create a profile and share opinions, feelings in regard to business
which can become as a source of competitive advantage (Green, 2009).
Mobile technology and hospitability
The use of mobile, smartphones and tablets have become an integral part of individual’s
life. To the view point of Srivastava (2016) mobile and internet access has brought
phenomenally changes in consumer behavior that have further enabled hoteliers look for real-
time technology solutions that may help them in staying updated in changing consumer
dynamics and leveraging the same so as to remain competitive in the marketplace (Srivastava ,
2016).
According to the investigation carried out in Mobile Technology Revolutionizing
Hospitality Industry (2016), there is experienced a phenomenal growth in adoption of tablets and
smart phones which has forced hotels, to increase their mobile presence as internet presence. The
data carried out by Trip Advisor Travel Trends 2012, there were 44% of all travelers who were
using mobile phone in the form of travel resource. On the other hand, Deloitte Hospitality Trend
2015 has ranked mobile adoption as one among the top ten game changers within the industry
(Mobile Technology Revolutionizing Hospitality Industry, 2016).
The guests of present ear wants have high quality multimedia formats along with
fabulous images and videos. Whatever hospitality business it is, either restaurants, spa, golf, in-
room dining or concierge or travel services, the use of rich multimedia formats to offers
hospitality services increases the exposure and usage. The use of mobile technology enables
customers / guests to access details of services which are offered by businesses and also helps
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them to order and request services directly from the mobile device. In the similar article, it has
been found that language is not remained as a barrier for foreign guest to enjoying hotel services.
The business entities can track time taken to complete guest requests and keep them informed.
Srivastava (2016) mobile technology enhances guest experience and its impacts can be
seen to be wider and felt far and wide. In today’s era, hotels are adopting innovative strategies so
as to implement mobile technology thus to enhance guest experience (Srivastava, 2016). To the
view point of Ricci (2010) mobile technology and the use of social media affects hotel
reputation. The hospitality business must have the ability to stay connected through mobile
devices which result in the increase of user generated content posted across social media
platforms. It has been noted that before booking a hotel, the customers always rely on online
review sources like as TripAdvisor, Facebook reviews, website reviews which affects the
reputation of company,. Mobile devices have become a part of individual life and people wants
to have all the information easily accessible through their mobile phones (Ricci 2010). This trend
have forced companies to adopt proactive strategies to make efforts for reputation management
efforts. The presence of companies in social sites allows them to stay on top by respond quickly
to customers.
Social media tools and their application to hospitability industry
According to Nations (2008) there are number of social media sites which are used for
the purpose making brand awareness of hospitality business, however, their application is too
wide. The author further defined the most common tools to create advertising and word of mouth
for hospitality services named as Facebook. This is denoted as a social networking site where
people can have conversations with other people and can also share photographs. Facebook is a
commonly used media platform which is used for creating brand awareness among large
audiences at single time. On this, social media website marketing managers can regularly update
the information in respect with room services and pricing (The advantages and disadvantages of
using Facebook. 2015). The investigation carried out by Burson-Marsteller (2010) the
international companies most acknowledge the value of engaging in social media. The
investigation revealed that facts that companies prefer to post there information on three major
social sites such as Twitter, Facebook and YouTube. The finding of the investigation also
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revealed that facts that Twitter is the most preferred media tool among Fortune Global 100
companies, among such companies 65% are presence on the social network. \
Among these companies, one-half reach to the audience via using Facebook and
YouTube and others area have maintain corporate blogs. In addition to that the companies have
seen the benefits of social networking sites in the forms of sustained engagement (Burson-
Marsteller, 2010). To the view point of Van Hoof and Buhalis (2013) the major role of
information and communication technology is to market the products and services of hospitality
organizations for attracting large number of guests. With the use of social networking sites,
business can support hospitality organization and can also promote leisure and luxurious services
among large audiences. In accordance to the advantages of using social media sites and mobile
technology in hospitality, the business organizations can gain competitive advantage via sharing
hotel images and video and information. The hospitality organization are enjoying benefits in the
form of enhancing brand images in the marketplaces. There are various innovative sites such as
Facebook, Twitter, YouTube and other micro-blogging sites on which company can post the
information and can create brand awareness among existing and potential guests. It can further
be said that the trend of social media market has grown with the era.
According to Xiang and Gretzel, (2010) the use of advanced technology is helpful in
designing effective marketing strategies of a hotel, however, it has been said that social media
tools can be used accordingly as suited the objectives of hospitality businesses. The most
influential social networking sites are Twitter, Facebook, YouTube and Corporate Blogs which
provides benefits in terms of increasing brand awareness and creating reputation of hospitality
companies. In addition to that, mobile technology is used to provide convenience to the
customers for gaining information in relation to the hospitality offerings. The mobiles
application are increasingly used by the hotels in which the information can be found to be in
handy devices. In addition to that, the information is helpful in accessing information in relation
to related to available packages and can pass the information to one to other users in relatively
less time span (Ricci, 2010).
Information can be passed from one to other users in relatively less time. However, ()
carried out the fact that the use of mobile applications enables customers to make transaction in
electrical form, thus, saving time and money. The use of mobile technology and the
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development of social media platform have provided a chance to create innovative business
practices in the field of marketing and to attract the large number of customers towards business
offerings. As per the words of Ricci (2010) the use of social media tools is a cost effective ways
to create brand awareness among large number of audience and to promote and advertise their
services among widely located people. Using social media tools, the company can target huge
audience and can also create positive image in the market place while gaining competitive
advantages. The author has argued that social media sites helps hospitality business to transmit
the information and message among large audience and to be with them 24*7 that is going to
increase the brand awareness. Furthermore , this is to be said that the development of social
media play a significant role for business to get engaged with engaging guests and to provide
them wide range of services and to meet there specific requirements. Hence, it can be said that
development of social media sites affects hospitality business and promotes their entertainment
and leisure service.
Case study
Red Carnation Hotel luxurious award winning hospitality organization that mainly
renders accommodation as well as food and beverage services to their client and visitors who
visits the hotel. The hospitality organization basically operates boutique chain of hotel in the UK,
Ireland, USA and many other countries. Red Carnation hotel was founded in 1984 and mainly
provide range of services and facilities that is accommodation, meeting and events, weddings etc.
In the modern scenario with the increasing technological aspects hospitality organization keep
focuses on adopting new technological techniques like social media sites, mobile marketing,
digital marketing etc. to promote and marketing their services in the overall market. Furthermore,
Red Carnation hotel also faces some challenges regarding mis-communication among their staff
and clients (Mobile technology in the hospitality industry, 2015). Therefore, it results in
developing the modern techniques like emergence of social media sites as well as mobile
technology within the hotel so that they can easily overcome the mis-communication among
their client. With the help of social media tool they can easily provide range of information
related with their products and services that they are offering to their various visitors and
business client.
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In addition to this, in the modern scenario Red Carnation hotel also face issues related
with marketing and promotion of their services. Thus, it results in arising the development of
social media and mobile technology within the organization so that marketing manager can
easily promote their services to the large mass of audiences. In the constant development of era,
the social media system within the Red Carnation hotel generally faces the demand respect with
the up gradation of information accompanying with the services and facilities that are provided
by the hotels. Thus, it is essential for the manager of Red Carnation hotel that on the regular
basis they must engage in updating the hospitality information on their websites (Mobile
Technology Revolutionizing Hospitality Industry. 2016).
Current social media presence
Red Carnation hotels are accumulation of 4 and 5 star boutique hotel that provide range
of hospitality services for their visitors and business clients. The hospitality organization have
presence on the social media sites as well as company also focuses on the Pay Per Click (PPC)
advertisement for advertising their esteemed London properties. With the help of PPC
advertisement it benefit the Red Carnation Hotel in generating their revenue from £76.646.13 to
£144,279.50. The modern advertisement technique also support them increasing their visibility
on the web pages. Furthermore, it has been also assessed that they paid visitors traffic also raise
up-to 11.09% to 9% (Red Carnation Hotel PPC. 2016). From the case study it has been assessed
that for generating the growth and incremental revenue it has been measured that PPC campaign
has been consider as successful measure for the Red Carnation hotel. In addition to this, the
current social media presence through PPC advertisement is consider as advantageous campaign
for the Red Carnation Hotel as it reaches to the large mass of audience as will it also allow to
sent the large number of visitors ti the website where advertisement is being displayed.
Moreover, expanding the online visibility of the hospitality organization swill support them in
establishing and creating image of organization in the market. Along with this, with the help of
PPC advertisement Red Carnation Hotel will also maximize the return on marketing investment
that is being made by the organization in order to grab attention of the large mass of audiences.
Furthermore, Red Carnation hotel also focus on ICT as well as various online sites and
application in order to draw the attention of large number of visitors and guests towards the
services of hotel. While, it will also support Red Carnation hotel in promoting their leisure and
luxurious services across the nation by covering large audiences in the different regions.
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In addition to this, Red Carnation hotel also have presence on different review blog-sites
such as TripAdvisor as well as Wiki-travel on which different business clients as well as guests
who visited the hotel mark their review and comment on that sites. Thus, the key challenge
associated with this social tool is that on the review blog sites clients or guests may mark
negative review regarding the services of hotel and staff that act as negative for the overall image
of hospitality organization. In addition to this, with the help of review blog sites customers and
guests share their experience and rank their services according to the experienced gained.
Moreover, the rank provided by the client on the micro blogging sites impact the overall
decisions of other customers and guests towards selecting their services (The Pros and Cons of
business blogging. 2016).
Discussion
From the above literature review and case study it has been discussed that with the
changing scenario it results in developing the technological aspect within the organization. Thus,
it will further support them in developing the role of social media and mobile technology in the
hospitality organization. It has been analyzed that currently Red Carnation hotel focuses on using
the Pay Per Click advertisement for marketing and promoting their leisure and luxurious services
in the market. This consider as an online marketing tool through which business generate traffic
on their online websites and thus, it results in purchasing or selecting their services. There are
certain advantages of using PPC advertisement that is PPC helps Red Carnation Hotel in
different ways that is as per (Company Overview of Red Carnation Hotels (UK) Limited, 2016)
With the help of pay per click advertising it can show and displays on the search engines
resultant page. This support the Red Carnation Hotel to outspread awareness regarding their
services and products that they offer among the customers across the world. The outcome in PPC
are more measurable than that of enabling Search Engine Optimization (SEO). This is because
PPC networks such as Google Ad Words provide different forms of metrics. These metrics
permit Red Carnation Hotel to perceive which individuals have seen the advertisement and who
clicked it. One of the best things about PPC online marketing is that it give publicize the ability
to power where their advertisement are exposed. This helps Red Carnation Hotel to address the
right audience on right time. Pay per click advertising can succeed in attracting the traffic easily
and within minutes thus, it results in enhancing the image and Red Carnation Hotel get the
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customers who are interested in the products or services. On the other hand there are different
disadvantage of using PPC advertisement for the Red Carnation Hotel that is if the advertiser or
publicizer compete together for their ad position on the top it may results in arising the bidding
wars among the advertiser. According to Srivastava (2016) PPC also results in arising the
situation of click fraud under which individual with the fake or different IP addresses click their
ads and also rack up costly bills from the unreal traffic.
In addition to this, from the discussion it has been also measured that company also focus
on reviewing the micro-blogging sites such as TripAdvisor and Wiki-travel that will support
them in promoting and marketing their services among the large mass of audiences. As per the
view of Hvass and Munar (2012) micro-blogging sites plays significant role in the business as
with the help of this online platform individual or guests may easily share their experience by
commenting on their page. Moreover, the micro-blogging sites also benefit Red Carnation Hotel
enhancing awareness regarding their hotel and their services that are offered by them to different
segment customers. In addition to this, external blogs also support hospitality organization
maximizing their public relations among their customers and business clients. Along with this,
review blogging sites also support in improving their customer assistance by offering them quick
and fast solution for their problem and issues. On the other hand, using reviewing blog sites also
act as major disadvantage for Red Carnation as review blog sites like TripAdvisor as well as
Wiki-travel does focus on positive comment but they also displays the negative or destructive
comment that are posted by the customers and guests who have visited the hotel. Therefore,
negative review results in building negative image in the mind of customers so they would not
prefer to visits the hotel due to negative comment provided by the guests.
Development of social media strategy for Red Carnation hotel
The application of social media sites and mobile technology is proved vital for hospitality
business to create awareness among large audiences and to provide convenience to the company.
With the technological development scenario organization must focuses on developing their
social media strategy as well as mobile technology so that Red Carnation hotel can easily
promote their services within the market. In addition to this, development of social media
strategy also benefit the hospitality organization in targeting their customers and creating
awareness regarding their services in the market. In relation to Red Carnation Hotel, the use of
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such platforms will be a source of gaining competitive advantage. The corporate entity must
develop innovative social media strategies so as to remain competitive at the workplace.
Mobile check in facility: The Red Carnation Hotel must use mobile technology to offer
a mobile check in facility so that the guest waiting time can be reduce. This will enhance the
experience of guests and provides them a chance to save their time. Some guests always want to
use their mobile as an access cards to their room. So that hotels can expand their services in such
forms, in addition, this hotel can provide a platforms from where from the customers can get
aware with nearby restaurants, markets, and other sightseeing places. In this way, the cited
company can make use of mobile technology to offer an improved experience and can create a
good image ion the marketplace.
Increasing Social media presence : The business entity has to work upon increasing social
media presence in which it can design the messages can upload it to social media sites. The
messages designed by the companies should relate to loyalty programs and such messages can
also be sent to patrons over the customer’s mobile devices. The business entity has to work upon
increasing its social media presence by using YouTube and Twitter sides to promote its services
and to give messages to its customers. The guest of the business are to be provided with a
platforms to provide feedback about the services of provided by hotels, it will also provide a
chance to the hotel to improve the services as well to improve guests experiences.
Mobile Application- With the help of initiating mobile application for Red Carnation Hotel
they can easily get connected with their customers and guests. In the technological advanced
scenario with the help of mobile application guests or customers can easily reserve the room
services as well as other facilities of the hotel. Now a days with the help of mobile application
customers can also manage their check in check out status. It has been assessed that using mobile
application has results in consuming the overall time of customers in searching and reserving the
hotel services. In addition to this, mobile application also enhances the experience of customers
and guests who visited the hotel as with the reservation through mobile application it reduces the
overall waiting time of customers and further it also support in accessing the room through
mobile application.
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