Advantages and Disadvantages of Social Networks in Hotel Industry

This report provides a literature review examining the role of social networks in the Australian hotel industry. It explores the impact of social media on customer engagement, brand awareness, and marketing strategies. The report discusses the advantages, such as increased customer reach, real-time information sharing, and cost-effective marketing, as well as the disadvantages, including risks of cyberbullying, fraud, and privacy concerns. The analysis covers current trends in social network adoption by Australian hotels, highlighting platforms like Facebook and Twitter, and their use in customer relationship management and advertising. The report emphasizes the importance of training employees and managing online reputations, while also addressing challenges such as understanding social media innovation and adapting business objectives in a dynamic environment.

Advantages and Disadvantages of
Using Social Networks in Hotel
industry in Australia

Table of Contents
CHAPTER 2 – LITERATURE REVIEW.......................................................................................3
2.1 Overview..........................................................................................................................3
2.2 What is social networks....................................................................................................3
2.2 Impact of social network in hotel industry.......................................................................4
2.3 Advantage and disadvantage of social networks in hotel industry...................................5
2.4 Current trends of social networks which has been adopted by the hotel industry in
Australia.................................................................................................................................7
REFERENCES................................................................................................................................9

CHAPTER 2 – LITERATURE REVIEW
2.1 Overview
This chapter provides reviews on recent literature on social media marketing and it will
provide underlying theoretical foundation of characteristics of social networks. This research is
essential to conduct in-depth review of information. Through this secondary source of
information are received. The review of past literature helps in analysing the different aspects of
the research topic. There is critical role of past literature in analysing the gap that had emerged
within past research. Such gaps are analysed in the present research for the sake of reaching on
appropriate conclusion. The review of several authors has been analysed in brief present thesis to
get the different possible of outcome. Social network in hospitality industry has been
conceptualised. The hospitality industries are using social media sites, in order to provide quality
of services to customers. This chapter presents an outline earlier research which has done work
on the social media and analysed the advantage and disadvantage in hospitality industry.
2.2 What is social networks
Social network or media is essential part of our everyday life. Social media are the
internet services which interact the people with others and share there ideas through online
communities. With the help of social media, it gives an marketing opportunity to business
community or any hospitality industry to increase their brand awareness. In any business
community, the managers can use any of the following sites such as; Face book, twitter, online-
photo sharing services, blog, customer review sites and many more. According to Andreea
Maha, it is depicted that social media sites reflects a fundamental shifts that how information are
sharing on network sites. It helps the consumer as well as to interact with each other at any point
of time.
It is important for all organisation to use this platform which provide benefits and but
also having an negative influence also. As per view of Alonso and Ogle (2010), it is reserved that
while selecting any social media networks, it is essential to considered a couple of aspects which
includes such as; how many users are active, goals of organisation, the functionality of social
network and many more. With help of these, it will help the organisation to analyse the
effectiveness of each platform in organisation.

Social media differs from paper based media such as newspaper magazines or traditional
electronic media such as on television. As stated by Bolton and et. al., (2013), it is inferred that
the social use of social media is having both negative and positive impact on the organisation.
Social media can help the organisation in attracting the large number of customers from different
countries but on other side, customers are facing some problems such as online harassment,
cyberbullying and many more. The organisation or individual have great responsibility to use
those sites which are authentically saved. In hospitality industry social media provides more
opportunity to make greater contact with the more customers which will also reduce the cost
over the traditional social networks. In hotel industry there is blog of every hotel with their own
profile and more than approximately 10000 followers. Through online the customers are also
rating whether they are happy with the services or not.
According to Chalkiti (2012), it is reserved that social media platform help the user to
check in whenever they are. They can also see the reviews of other customers and decide that
whether they are happy or not. There are many organisation who are using social network sites
for creating their loyal programmes with customers. The hotel industry are facing some key
challenges while doing the work with the help of social networks such as lack of adequate
funding, understanding of social media innovation and many more. Sometimes it will difficult
for organisation to change their business objectives in dynamic environment.
2.2 Impact of social network in hotel industry
According to Chung and Koo (2015), it is reserved that social media is catch phrase
which describes the technology that facilitates interactive information. In hospitality industry it
includes guest, staff, customers or management. The social network sites provide the platform
for rating the system which can be used by hotel in monitoring, generate or evaluate the
reputation image of the business. The hospitality industries are participating in the social
networking sites which also shown cost-effectiveness in terms of engagement with potential
clients. Social networking sites are convenient in which the organisation can easily access with
customer replies.
A years ago, the customers booking the hotel through telephone or mail. The hospitality
industry is slow in gaining momentum towards technology. Therefore, the industry has not
leverage on the power of social media and integrated it with their marketing initiatives (Dwivedi,

Yadav and Venkatesh, 2011). The hospitality have to turn to social media sites for reaching out
with their new customers.
As per view of Fotis, Buhalis and Rossides (2012), it is reserved that some of the hotel of
Australia are fear from using the social network sites because they think that it could be
detrimental to employee productivity or they are also thinking that while using the social media
network they can damage their reputation. If social media sites are used in efficient manner than
it will help he organisation in increasing their brand name but it ca also work against the
organisation if it has been used inappropriately. In hotel industry social media is just a tool. The
tool is that for connection and medium for broadcasting. Many of the hotels are using so many
tools and techniques with the help of social media networks in promoting their brand names in
different country.
As stated by Hede and Kellett (2012), it is inferred that, many of the hotel has adopted
the social media sites such as Facebook, twitter through this it has opened a variety for avenues
and providing the opportunities to hotel to listen their guest properly. Through this the hotel
industry are forming a own websites and it also a form of marketing strategy. The use of social
networks are having both negative and positive impact on hotel industry. The positive impact is
that the hotels can easily advertise and promote the brand name of organisation. Through this
they can improve the customer relationship management. It save the time of organisation and
customers to book the hotel in easy manner. The customers are mainly influence by the reviews
of others which has been given by the other people. In hotel higher authority has to provide
proper training development programme to employees in order to deliver the supreme quality of
services to customers. It became easy for company to take the regular feedback from the
customers after visiting the hotel. On other side, it sometimes waste the time of organisation in
providing the proper training to employees regarding how to use the social network sites. But in
modern era, it is very important because through this they can identify the needs of customers
and also target new customers (Zeng and Gerritsen 2014). On the websites of hotel industry, it is
responsibility of manager that whatever information they have been written on the website it all
should be through otherwise it will spoil the reputation of hotel.
2.3 Advantage and disadvantage of social networks in hotel industry
A years ago, the use of social media websites such as face book, twitter has been
revolutionized not only that how the people were interact with each other but also for the how

business will interact with customers. The hotels in Australia such as Crowne plaza, Hyatt, Wrest
point hotel casino and many more are using the social media websites for attracting large number
customer of customers. Hotel industry are taking part in social networks so that they can stay
active online in order to does not miss any opportunity. As per view of Hsu, Liu and Huang
(2012), it is inferred that, so many hotels are spending large amount of funds in social media in
terms of attracting large number of customers. These all funds are using as effective and
efficiently for a marketing tool. According to Charlie R. Claywell, the advantage of social
networking sites on hotel industry are as listed below.
Worldwide community - No matter if person is searching for anything, there is no
easier or faster way to make the connections with social media. Although there are already many
websites such as Face Book, twitter in which the hotel industry are investing large amount of
funds and attracting new customers. Also there are many new websites which are popping up
regularly to connect the people over the web. For hotel industry, so many websites are available
in which customers can book all the tickets even hotel through online such as make by trip,
goibibo and many more. It will be more convenient for the customers to interact with the
organisation and use the services.
Real-time information sharing – With the help of social media sites the hotels are doing
instantly message. With the raising of number of websites the consumer is having an opportunity
to look up on the reviews of other customer. The real time sharing of information is beneficial
for the organisation to share the information with customers. Social networking site can be a tool
for the manager of hotel in which they can utilise the their time in team meeting.
Increased news cycle speed - The social networking sites has revolutionised the speed
of news cycle. Most of the hotel of Australia are relay on social media sites in which they collect
and share the information. Twitter, for the hotel industry steadily becoming a mainstream source
for the breaking the news because more customers are active on this social websites rather then
Face book.
As per view of Kwok and Yu (2013), it is reserved that there are many more advantage of
the social networks. The hotel industry can also promote their brand awareness with the help of
using advertising, sales promotion. In advertising, the hotel can update the information on Face
book, LinkedIn, blogs and many more. Through this the hotel can also find out that what are the
strategies which are using their competitors in order to retain in market for a long period of time.

The disadvantage of social media networks on the hotel industry are described as below.
Cyberbullying and crime – Some of the social network sites are exposing the forms of
harassment or even there are not inappropriate contract available. For example, there are many
unauthorised websites in which consumers are booking their hotels and after that they are
realising that these sites are fake. Further they are not believing on the real websites so it will
give negative on the hotel industries.
Risk of fraud or identity theft – The information which are available by the
organisation can be clever by anyone. Most thieves just need a few vital pieces through which
they can hack the site of organisation. On other side, if any person has book the hotel through
online services with a changing in name and identity. After the sometimes the organisation
became to know that this person is fake then hotel industry can not believe easily on everyone.
Corporate Invasion of privacy – The social networking sites are used by the large of
organisation in which they can invade the privacy of the other company and sell the information.
So the hotel industry have to protect their information from their competitors.
Time waster – For many hotel the social sites are time waster because they think that it
needs regular time active on these sites. To be regular active on social network sites it will waste
their time and the work cannot also be properly managed by the managers.
2.4 Current trends of social networks which has been adopted by the hotel industry in Australia
The hotels in Australia needs high-tech technologies in which they can retain in market
for a long period of time. In Australia, there are different hotels in Australia who are using
different social networking sites which helps in increasing the awareness so that they can attain
the targets as well as boost in productivity and proficiency. According to Leung, Bai and Stahura
(2015), it has been interpreted that by adopting social networks they can increase the brand
image as proprietors of both independent as well as hotel chain are increasingly so that they can
create a point. By the social networks they can provide the special qualities to the consumers by
making the effective designing so that they can grow or expand in the competitive market. The
employees of Intercontinental Hotel are using these sites of social networking which helps in
doing he proper promotion of the products and services which they are providing to the
consumers and by that they can create the brand awareness. They have to use the attractive
experience to both that is guests as well as external patrons. As state by Sigala, Christou and
Gretzel (2012), it has been analysed that in The Star Gold Coast have to deliver the products and

services according to the demand of guest accommodation and on the basis of that they offer the
non- alienating experiences along with the rooms that are easy to navigate and they are easy to
live in. In the Hyatt Hotel Canberra, they have to do proper designing have experienced so that
they can increased requirement so that they can produce and offer best services by allocating the
best services. As per the views of Syed-Ahmad and Murphy (2010), it has been depicted that the
manager having a great responsibility so that they can specify the sustainable materials as well as
appropriate designing options for the client so that they can attain the goals and objectives. They
have to provide the products with the operating the cost.

REFERENCES
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