Abstract ................................................................................................................................................... 2 Key Words .............................................................................................................................................. 3 Introduction........................................................................................................................................... 4 Literature Review ................................................................................................................................ 5 Method ...................................................................................................................................................15 Results....................................................................................................................................................18 Discussion & Conclusion..................................................................................................................33 Limitations ...........................................................................................................................................35 Index of Tables & Exhibits...............................................................................................................36 Appendix A. Internet search Twitter Data.................................................................................37 Appendix B. Survey Responses......................................................................................................39 Works Cited..........................................................................................................................................50
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Abstract
Social media marketing is a relatively new term for hotel companies.
There is very little quality research available specifically to hotel companies to assist them in their social media marketing campaign. Much of the industry published material lacks hard data and just touches the surface of the real issues. After conducting an extensive literature search on social media in general, an Internet search was conducted on ten luxury brand hotel companies to evaluate their current use of Facebook and Twitter. Next, a survey was conducted to get an overall feel for what companies find important for their social media campaigns.
Through the research, it was found that all companies have some presence on one or more social media networks, and that there is no industry wide standard for conducting a marketing campaign through these networking sites. The results show that more academic research is needed to see whether or not using social media for marketing is a worthwhile investment for hotel companies.
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Key Words
Social Networking -‐ the use of a website to connect with people who share personal or professional interests, place of origin, education at a particular school, etc. Social Media -‐ the type of media that is based on conversation and interaction between people online; where media means digital words, sounds & pictures, which are typically shared via the Internet and the value can be cultural, societal or even financial. Facebook – a social networking website designed so users can create and customize their own profiles with photos, videos, and information about themselves. Friends can browse each other’s profiles and write comments to each other. Twitter – a social networking website where users post status updates up to 140 characters long that can be shared with their followers. Tweet – a post or a status update on Twitter. Retweet – when one Twitter user reposts someone else’s tweet. TripAdvisor – a free travel guide and research website that assists customers in making travel decisions by allowing other users to blog about their experiences.
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Introduction
Facebook Facebook is a free social networking website that allows people to communicate and share information with their friends, family, coworkers, and strangers.
Mark Zuckerberg, together with a few of his Harvard classmates, founded Facebook in 2004. The company currently employs over 1200 people and there are over 400 million active users of the site.
According to Facebook’s factsheet, the average user spends more than 55 minutes per day on the website. More than 20 million people become fans of pages every single day, creating a huge marketing opportunity for businesses. Also, more than 100 million active users are accessing Facebook from their mobile devices on a regular basis. Facebook is available to users in over 70 different languages (Corbett, 2010).
Hotel companies use Facebook heavily in their social media marketing campaigns. Facebook pages and groups are used to create a two-‐way conversation between the company and their guests. Hotels have embraced this social networking platform as a way to promote specials, post pictures, and develop stronger relationships with their guests. The guest experience no longer ends at checkout; people continue to give feedback on their hotel stays when they arrive home. This avenue of customer engagement marketing is relatively new, not just to the hotel industry, but in business overall. Some companies have capitalized on the opportunities Facebook offers, while others are still just trying to keep their heads above water in the vast world of social media marketing.
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Twitter
Twitter is a social networking platform where people or businesses post short
status updates of 140 characters or less.
It is, again, a free service (for now), and acts much like a microblog that allows users to send and read other users’ updates, which are known as tweets. It is a way for businesses to relay quick bits of information to their customers in a timely manner. Twitter users have grown exponentially just in the past year alone.
According to Twitter, about 50 million tweets are sent each day, which means total tweets sent since January 2009 has gone up 1,400%. Currently, Twitter is ranked as the number 12 website both in the world and in the United States. This exponential growth is only expected to continue through 2010 and beyond, especially with the use of mobile device applications that allow people to tweet on the move (Wilhelm, 2010).
Hotel companies are using Twitter in a similar way as they are using Facebook – to
create a two-‐way dialogue with their guests. Hotels can tweet about news and events. They are able to respond to guest praise and complaints in a very timely manner. The best use of Twitter for hotels may be to promote last minute deals on rooms and restaurant offerings to people who are already in the area. This helps with that extra push when the week’s occupancy may be distressed.
Literature Review
Very little academic research has been conducted in the area of social media
marketing in businesses, let alone specifically in the hotel industry. Studies are more prevalent on Internet use by teens and children than how social media platforms are being utilized by businesses to market their products and services, or even to gain additional 5
revenue. The use of social media for marketing purposes is relatively new.
Facebook has only been around for six years and has been used by businesses for an even shorter period of time. Twitter just started to gain momentum in January of 2009. Individuals are trying to figure out the lingo and logistics themselves before the technology can be applied to a company-‐wide policy.
There are many individual agencies that try to track usage of these social media sites, but there is just too much data developing at too high a rate for anyone to really understand the full picture.
Industry professionals, consultants, and bloggers have written hundreds of industry
articles and blurbs about the effects and best practices of social media in both general business and specifically the lodging industry. One could spend hours sorting through these articles that have little data to back them up. A gap is seen in real, academic research being done on social media use by hotel companies. Some studies exist that have explored other aspects of online marketing and e-‐commerce, but they do not specifically pertain to social media networks.
Peter O’Connor at Cornell University published a study in February of 2008 called
“E-‐Mail Marketing by International Hotel Chains.” The aim of the study was to see if international hotel chains adhered to the CAN-‐SPAM Act of 2003 regarding use of e-‐mail for commercial marketing. The overall findings showed that hotel companies were highly ethical in using consumers’ personal data, and the industry may even serve as an example of best practice for other businesses. At the time of the study, social media networks were in their infancy and e-‐mail was the best online marketing tool. E-‐mail was, and still is, used to notify guests of promotions, as well as develop and continue ongoing dialogue with
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consumers, many of the same objectives that are being accomplished now through social media (O’Connor, 2009) O’Connor entered false but functioning personal data on the top fifty worldwide hotel brands, as identified in the July 2003 issue of Hotels magazine.
Over a period of a year, he received 397 e-‐mails, of which 92 percent originated from the companies that were part of the study and not from third parties. His research shows that hotels tend not to sell personal data to third parties. Also, 84 percent of the e-‐mails received were promotional in nature, similar to the nature of Facebook posts and Twitter tweets (O’Connor, 2009)
While O’Connor’s research is mainly about the legal issue of sharing electronic
personal data, his findings on e-‐mail use by international hotel companies before 2008 closely mirrors how hotel companies are now using social media networks.
While the main goal of any hotel marketing campaign is to bring in more guests and
therefore more revenue, very little data is available on whether the relationships created through social media networks actually lead to an increased bottom line for the company. A study published by the Department of Computer Science at the University of California at Santa Barbara attempted to evaluate the impact of social connections on business transactions. While this study is not specifically related to the hospitality industry, it does shed light on the sociology behind business transactions and social networks.
This research used Overstock Auction as a case study to evaluate how their social
networking component establishes and maintains a web of trust between the company and their users. On Overstock, buyers and sellers are able to create profiles and rate one another at the end of each transaction.
This social network is designed to build a 7
community of buyers and sellers, improving trust between them, and therefore “improving transaction satisfaction.” The study found that 86 percent of the Overstock users did not set up a personal network (Swamynathan, 2008), showing they are more interested in the financial transaction and are either unaware or uninterested in the social networking component. The study also showed that 93 percent of users had only made transactions with a small number of partners (Swamynathan, 2008). While the amount of transactions between users with profiles is low, the satisfaction rate for those transactions was found to by high. The writers of the study believe that connections through the social networking component sift out fraudulent users, inherently improving the trust factor.
Although this study focuses on product transactions on the Overstock Auction
website, similar principals hold true for service transactions in the lodging industry, maybe even more so. The stronger the relationship between the customer and the company, the more loyal they will be and the more likely they are to be repeat customers. Social media networks are the newest way to develop the two-‐way relationships needed for satisfaction and loyalty to occur.
A study from Purdue University, published in the Journal of Hospitality Marketing &
Management, looks into travelers’ attitude and use patterns of mobile technology in tourism. The study goes in depth into travelers’ mobile technology use intention and their performance and effort expectancy. The general use of mobile technology has been studied; including mobile travel guides, reservation systems, and other PDA based systems. This research aimed to evaluate how travelers’ previous technology use is a predictor of their intention to use mobile devices for future travel decision making. Secondly, it looked at
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how travelers’ previous trip experiences are predictors of their intent to use mobile devices for their future travel as well.
To conduct the study, an online survey was sent to 2,000 panel members, with a
total of 283 completed responses, a response rate of 14.15 percent. The survey found that 88 percent of the respondents use mobile devices during travel. The authors of the research think, “Hospitality marketers should target their marketing toward frequent travelers,” because these are the people who are most likely to use mobile devices during their trips (Oh, 2009).
This study on the use of mobile technologies for tourism, published in 2009, shows
how important it is for hotel companies to market to this specific segment of travelers. Now that social media applications are available for smart phones, frequent travelers can follow their favorite hotel in the area they are traveling to and learn about special promotions while they are in town.
Industry studies on social networking, done mainly by consulting companies, seem
to contain the most up to date and relevant information possible. It is difficult to obtain accurate data on this topic when the numbers of users are growing exponentially on a daily basis, but the following three companies have compiled reports that give businesses a good inside look on how the social networking world is shaping up.
The Dow Jones Enterprise Media Group recently released a publication called The
Conversational Corporation: How Social Media is Changing the Enterprise. The aim of the publication is to educate company managers on social media and the best practices. Dow Jones is pushing companies to focus on their social media campaigns. According to eMarketer, 95 percent of adolescents between the ages of 12 and 17 are active online. Dow 9
Jones believes that this Internet use will become habit for the next generation of consumers, and that companies should hone their social networking skills now before these adolescents become their main demand generators. A project sponsored by SAP, the world’s third-‐largest software company, shows how young people are driving social media adoption. A global usage report completed in March 2008 by Universal McCann stated that 57 percent of all Internet users were active in social networks (Scoble, 2010). This number has most certainly climbed in the past two years.
Dow Jones argues that many corporations are using private social networks within
their company, used for knowledge sharing, training, and ongoing dialogue between employees. For example, Best Buy has a closed community of 20,000 retail staff, called BlueShirt Nation. The staff talks about customer needs and complaints and give suggestions for where improvements can be made. Due to this online, internal social network, the company no longer has to compile in store surveys. The online community has also raised morale for the retail staff and created an overall better working environment (Scoble, 2010).
The majority of the Dow Jones publication gives corporate examples of social media
use as well as tips for companies trying to get their social media campaign off the ground or make it more effective. It is not an actual research study, but it does site recent studies on social media use. It could be a useful tool for companies looking to enhance their use of social media, but it may lack solid research. Bloggers and technology gurus, not academics, wrote it, but it is more approachable for corporate companies than much of the academic literature.
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Burston-‐Marsteller, one of the largest public relations agencies in the world,
recently published their study on social media use among the top 100 companies of Fortune’s Global 500 companies (2003). Titled The Global Social Media Check-Up, the study polled these top 100 companies on their use of social networking sites. Their main point is that success measurement with social media marketing is not just the sheer numbers of followers and fans, but that those users must be highly engaged for the marketing to be effective. The data is the most up to date information available to the business world, as the study was completed in January 2010.
Of the Fortune top 100 companies, 65 percent have active Twitter accounts, 54
percent have Facebook fan pages, and 50 percent have YouTube video channels. Compared to other regions of the world, the United States had the highest percentage of companies using social media. In Asia, the trend is more towards writing corporate blogs to communicate to the consumer. The United States also has the highest percentage of companies using all four of the social media platforms at 28 percent. The survey broke down usage patterns by platform type as well. The percentage of Twitter accounts with activity in the past week was 82 percent. This is high, but also means 18 percent of accounts are inactive, and Twitter is really about quick, up to the minute bits of information. The more often content is posted, the more often the consumer sees that brand on their live feed. Over all geographical areas, 38 percent of companies were responding to other people’s tweets and 32 percent were retweeting. The average in the United States for both of these is 5-‐10 percent higher. Overall, other Twitter users are tweeting about 42 percent of the Fortune Global 100 companies (Byrne, 2010).
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According to the same survey, the United States companies are not as strong in their
Facebook campaigns as are companies other parts of the world. Only 32 percent of U.S. companies have posted content that has comments from fans, whereas that percentage for European companies is 56. The survey rated the tone of the comments on a scale of 1-‐5, with five being highly positive. Overall, the tone of fan comments on company pages skewed slightly positive at a rating of 3.7. Most comments were found to be either strongly positive or negative, but few were neutral (Byrne, 2010).
Only 11 percent of the U.S. companies had corporate blog posts, as opposed to
European companies at 83 percent and Asian companies at 77 percent. This shows that Americans are moving away from blogs and posting more content on Twitter. Also, United States companies had an average of 6.6 Twitter accounts per company. This makes it unclear for stakeholders on which account to follow, and may promote mixed messages about the company. The high number of accounts also leads to abandoned accounts, which are “denigrating to the company’s presentation of itself in the social media space” (Byrne, 2010). The final section of the study gives advice for companies looking to enhance their social media campaign.
The Burson-‐Marsteller study paints a very good picture of the current social media
scene in top companies around the world. This research will be built upon to examine usage trends specifically among hospitality companies, although this research will be limited to mainly the United States and will not take a global look at the situation.
Tom Chapman, a Social Media Strategist for the social brand agency, Headstream,
did another intensive social media study.
This research focused more on the user side of social media platforms, but provides important insight for companies on how to manage 12
their marketing campaigns to engage consumers. Chapman wanted to know if Facebook and MySpace were effective platforms for social network marketing from the user’s point of view, as well as how effective page advertisements are in enhancing brand reputation. The study found that companies should focus more on the quality of the conversations they are having with their customers and less on the “friend” and “fan” metrics. Engagement should be planned both pre and post campaign launch to offer value to the consumer after the first transaction.
The research was conducted through quantitative online surveys of social media
users and qualitative in-‐depth interviews with brand executives. According to the research, less than 5 percent of Facebook users said they were likely to remain a friend/fan of a brand if they continually sent promotional information and advertisements, and zero percent of Facebook users said they were likely to purchase a product or service from a brand via their Facebook profile page. Thirty-‐five percent of Facebook users also said they think advertisements appearing on their profile are slightly obtrusive (Chapman, 2008). This shows that Facebook is not an effective platform for creating immediate purchase decisions or transactions.
On the other hand, users were more likely to support a brand if they held two-‐way
communication. When asked how strong their relationship toward a brand would be if the brand responded to the user’s message and listened to what they said, 43 percent responded slightly stronger and 25 percent responded much stronger (Chapman 2008). Consumers are looking to build a trust relationship with the brands before they make a buying decision. Conversations and engagement that take place beyond just becoming a friend or fan of the brand have the most value and are where true brand loyalty exists.
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Chapman’s research is beneficial to all brands trying to forge their way on social
media platforms. It is particularly relevant to the hospitality industry when it is so important to create that trust factor with a guest before they decide to purchase what in essence is an experience and not a product. More than ever before, hotels need to keep up the activity of discussion on their Facebook pages rather than simply advertise to users who feel it is obtrusive.
After sorting through all the research that has been conducted on social media
recently, a gap is seen in research relating specifically to the hospitality industry. The nature of the industry is vastly different from that of basic consumer products. Hotels are selling an experience and memories that people will carry with them for the rest of their lives. Companies that sell shoes are always selling the same exact product, and a person is not going to buy a pair of shoes if they already own the same ones. Hotel and travel purchases can be made on a much more frequent basis, and people rely on other people’s recommendations when planning.
The aim of the following research was to fill that gap between general knowledge of
social media marketing, and social media marketing for lodging companies. The goal was to find out how hotel companies are currently using various social media platforms that may be different from other industries. It was also to get a feel for which companies have the strongest social media campaigns at the moment, and how that may be affecting their brand equity. The ultimate goal of any marketing campaign is to create a return on the investment. There is not a lot of money needed to conduct a social media campaign, but time is a huge factor. Is it really worthwhile for a hotel to have an employee spend their
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whole day on Facebook and Twitter? Are these actions really creating any increase in revenue?
Method
Facebook & Twitter Page Search
The first step in the project was to do a simple Internet search on how hotels are
currently using Facebook and Twitter to market themselves. Ten hotel companies were chosen that represented a good mix of geographical locations. Companies were chosen based on their categorization of an overall property rating of four or five stars. A fact sheet for the companies researched can be seen below in Table A.
Table A. Companies included in Internet search
Company Four Seasons Ritz Carlton Mandarin Oriental Intercontinental Hilton JW Marriott Hyatt Shangri La Westin Peninsula Headquarters Toronto, Canada Maryland, USA Hong Kong, China Buckinghamshire, UK Virginia, USA Maryland, USA Chicago, USA Hong Kong, China New York, USA Hong Kong, China Properties 83 70 41 166 520 39 424 66 160 9 Countries 35 24 26 65 80 *22 45 37 6 1946 1919 1984 1957 1971 1930 1928 Launched 1960 1927 Employees 38,000
80,000
First, the company’s name was typed in to a Google search to see if any social media
platforms were noted under their homepage listing. Next, the company’s homepage was visited and it was noted as to whether or not they had any social media links on the homepage. If there were no direct link to social media platforms or information on the 15
homepage, a visit would be made to the site map of the page to locate any information they may have regarding their social media campaign. As will be discussed in further detail in the results section – many companies did not make their social media links apparent to the average Internet user.
If there was a link on the hotel’s website to their Twitter or Facebook accounts it
was followed. If there was no link, an additional search was made on each of the respective social media platforms. Once the company’s account was located on Facebook or Twitter, their content, fan base, and usage was recorded, along with any other aspects of their campaign that may have stood out. All data collected has been compiled into a chart (appendix A) and the findings will be discussed in the results section.
Research Survey
It seemed imperative to conduct some type of primary research on this topic, as so
little has actually been done and published. To dig a little deeper behind the scenes of social media marketing by hotel companies, a survey instrument was developed. The main goal of the survey was to find out the most important, beneficial aspects of social media marketing that hotel companies are using. It was also used to compare sentiments of managers at different levels within the company.
The original survey questions were based off the study done by Burson-‐Marsteller.
Data from the study was collected between November 2009 and January 2010, so it is the most up to date, comprehensive data available regarding corporate use of social media. The study sampled 29 US companies, 48 European companies, 20 Asia-‐Pacific companies, and 3 companies from Latin America.
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The original intent of our primary research was to ask very similar questions as
asked in the Burson-‐Marsteller study and compares the hotel companies we surveyed to the global companies they surveyed. This would show if the hotel industry was participating in the same way as other global industries. Through the continued development of our survey instrument, the questions and focus shifted away from the Burson-‐Marsteller study to fit our own goals and objectives.
Three faculty members in the Whittemore School of Business at the University of
New Hampshire, as well as six industry experts, many of who are UNH alumni, reviewed our survey instrument. Through the review process, questions were added and changed to fit the needs and objectives of those people who were interested in the results. At first, the plan was to send the survey to only managers and executives at 4-‐5 star properties. We found this would limit our sample field significantly. In order to widen the sample field but still be able to sort the data based on hotel category, more questions were added to the survey to differentiate between the types of properties.
Once the survey instrument was completed and input into the WSBE Qualtrics
survey tool, we sought approval from the Institutional Review Board (IRB) at the Office of Sponsored Research. This step was necessary because the survey involved human subjects and there are certain responsibilities and safeguards that come along with that. Once approval was granted from the IRB, we were able to begin distributing the survey.
The survey was initially sent to fifteen industry executives of international hotel
companies. Next it was sent to seventeen industry executives known personally by either Professor Udo Schlentrich or myself. Overall, only six responses were generated from this initial distribution. With the assistance of the University of New Hampshire Alumni Center, 17
the survey and accompanying cover letter was blasted to eighty hospitality management alumni. There is no concrete proof if any of these people responded to the survey. With the advice of a local software company, I tried distributing again through a twitter blast. By mentioning individual hotel companies, the survey was distributed to over forty companies. This tactic resulted in nine more responses. Unfortunately, time was becoming an issue and we had to stop distributing the survey so we would gather the results and analyze the data. Overall, data was collected from sixteen participants in the budget, 3, 4, and 5 star hotel categories.
Results
Facebook & Twitter Page Search
Of the ten lodging companies researched, all had some presence on Twitter, either at
the corporate or property level. Although the number of tweets or number of followers is a telling sign of success, the quality of the content is even more important. We found a wide range of content tweeted, anything from event promotions, packages, corporate information, questions posed to followers, responses to followers, retweets, future plans, thank you’s, and welcomes.
Overall, the Four Seasons had the strongest social media presences on Facebook and
Twitter, as well as information available on their website. Although nothing regarding social media was included in their Google listing, both the Facebook and Twitter links were visible on the company’s homepage. They also had an easy to find page dedicated to their social media campaign called “Social Media At-‐A-‐Glance.” This page included a short description of what each of their accounts pertained to or was capable of and the link. This 18
page also included a YouTube link and mobile device applications. The page makes it easy for guests to understand how the company uses each platform. It also makes it much easier to find the official Four Seasons accounts on these platforms instead of searching for them. At the time of research, the Four Seasons corporate Twitter account had 1962 tweets, more than any other company researched. They also had a separate Twitter account for each property location as well as a careers account. All of their Twitter and Facebook accounts are listed on their social media information page, so they are easy to find. Four Seasons has one main Facebook Fan Page in addition to the individual property pages. At the time of this writing in April 2010, their fan page had over 17,000 fans, up from 13,000 in February 2010. Four Seasons uses the fan page primarily for feedback from their guests and to promote specials. Overall, Four Seasons not only had a very strong presence on the social media platforms, they also integrated that aspect of marketing in their webpage.
As for Ritz Carlton, there was no mention or link to any social media platforms on their website. To find out what they are doing in terms of social media marketing, you must do an individual search on each of the platforms. There was one Facebook group found, but it consisted mainly of ex-‐staff members of the company. The content was not related to the promotion of the brand or any properties. There was also one Ritz Carlton fan page with 2,753 fans. Fans posted all content that was present; there was no interaction and no oversight by the company itself. There were only six fan photos posted and the information page was left blank.
A Twitter search for Ritz Carlton revealed a bit stronger showing than their Facebook presence. They had a global account as well as a few individual property 19
accounts. Even though they had 2,040 followers on the global account, the last update was two weeks old. This defeats the main purpose of Twitter of providing quick, up to the minute bits of information.
Overall, the social media campaign for Ritz Carlton is lacking. If they wish not to embrace this avenue of marketing, they should delete all their accounts and monitor when people create new under the company name. Little oversight provides for weak and not cohesive messages to their guests. With their current pages and accounts, they are doing the opposite of creating a two-‐way dialogue with their guests, they are just confusing them.
Peninsula hotels have an even worse showing on Facebook and Twitter. This is most likely because the company is based out of China, where they participate in other social media platforms not widely known in the United States. Peninsula hotels did have a few Twitter accounts set up, but there was not a single tweet on any of them. There was a Facebook group established as well, but it only had 355 members. They may have a strong social media campaign through platforms not widely used in the United States, but if they wish to capitalize on the US market, they should look into using social media networks that traveling Americans use.
Hyatt Hotels had no social media link under their Google listing or anywhere on their website. There was no official Facebook group or fan page found, just a few dwindling employee groups, which are ineffective in promoting the brand.
On the other hand, Hyatt Hotels have a very strong presence on Twitter. The Hyatt Concierge account had the most followers of any company researched, at 9729. The Hyatt Concierge was also following the most accounts, which means they have more of an opportunity to hold two-‐way conversations and respond to tweets that are posted about 20
their company. They use the Concierge Twitter account mostly to respond to other people’s tweets, while the individual property accounts focus more on promotional material and upcoming events. It is anyone’s guess why Hyatt has one of the strongest Twitter campaigns and virtually no use of Facebook.
JW Marriott seems to be fledging along when it comes to a social media campaign. There was one user generated Facebook group lacking in content and with only 165 members. They did have a number of fan pages for individual properties, but nothing to promote brand as a whole. Their strongest property page, for Medan, Indonesia, has a good balance of company and fan posted content, although not all is in English. Again, there is no company wide Twitter account for JW Marriott, but a few individual properties have accounts, while there is not much activity on them. It seems as though JW Marriott is just starting to get their feet wet in the social media realm, but they have a lot of work to do to develop a cohesive campaign company wide.
Hilton Hotels also have no social media link through their Google listing or on their homepage. By doing a keyword search for Facebook within their page did turn up a “Stay Connected” page with links to their Facebook and Twitter accounts. The official Hilton Facebook page is holding strong and continuing to grow a fan base, up to 36,832 since February when it was at 31,488. The majority of the content posted is from Hilton, but they have very strong guest feedback and engagement occurring. Their photo albums highlight the different property locations. They have posted a handful of quality videos showcasing certain properties or aspects of the company. The most interesting thing about Hilton’s Facebook page is the tab labeled “Hilton Moments”. They have published short stories told by Hilton staff about memorable moments when they really went above and beyond to 21
exceed guest expectations. Publishing these stories in a public space shows their commitment to the guest experience. The Facebook platform is an excellent place to tell these stories.
There are two main Hilton Twitter accounts – Hilton OnLine and Hilton GoSocial. The Hilton OnLine account is just like any other corporate hotel Twitter account. They only have about 2300 fans, but that is up almost 23% in just under two months. Hilton has a high response rate to other tweets and have an overall good balance of responses, information, and promotions. The Hilton GoSocial account is the main account for all Latin America & Caribbean properties. The content is similar to that of Hilton OnLine, but it is solely focused on one specific geographic region. It currently has 997 followers Westin Hotels, a brand of Starwood, have no social media link on their Google listing or on their webpage.
A Facebook search returns a company fan page with over 8000 fans. Westin posts the majority of the content, but they do have many fan comments and feedback. Individual Westin properties have posted content on the main Westin page to try to gain fans for their own fan page. The Westin Facebook fan page only has 2 photo albums and 12 fan photos posted, some of which are not necessarily relevant in promoting the brand.
Westin does not have a main company Twitter account, but many of the individual properties have fairly strong accounts. Most property accounts have well over 1000 followers. Some give links to Facebook posts, promote events, respond to guests, and promote restaurant specials for the day.
Mandarin Oriental does not have a social media link on their Google listing, but they do have Facebook and Twitter links on the bottom of their homepage. Clicking either of 22
these links brings you to their overall Social Media webpage.
This page gives you lists of their different property’s Facebook & Twitter accounts. They also have a small newsfeed on the side of the page to show updates that are currently being posted on those particular platforms. In addition to Facebook & Twitter, Mandarin Oriental has links to their Flickr and YouTube accounts. On Facebook, they have the option for people to become a fan of Mandarin Oriental in general, or one of 19 specific properties. The company page has over 7,000 followers, with many of them posting comments on the company’s wall.
Mandarin Oriental has certain Facebook applications that set their site apart from other hotel Facebook pages. They offer an interactive map showing where all of their properties are located.
One tab is dedicated to special promotions, and you can check reservations directly through the Facebook page. They have a FAN Club page that highlights the celebrities who have endorsed the company and awards that the company has received. They have also added a “Tempting Offers” page – which is new between the time of research in February 2010 and the time of writing in April 2010. This shows they are fine-‐tuning their social media campaign. They continue to change and update their pages based on what the guests are asking for and after finding out which applications are most effective.
Mandarin Oriental’s Twitter account is average compared to other hotel companies. They are not doing anything with Twitter that sets them apart. They have just over 1,000 followers and tweet about special events, awards, promotions, and responses to guest tweets. It seems most of their focus is on Facebook at this point. Intercontinental Hotels & Resorts do not have a social media link on their Google listing. The only social media mentioned on their homepage is a blog that highlights events 23
and attractions in one of their locations, but the last time it was updated was over four months ago.
The only Facebook group is for people who work at one of the hotels. They do have a Facebook Fan page but it is very difficult to find through a search. It has about 3300 fans, but the fans post basically none of the content. It is a basic fan page with none of the extras that Mandarin Oriental has. It does have 27 photo albums promoting different events. Four of these albums are devoted to the release of the Ipad at different locations.
There are also about 70 fan photos posted on the page.
Again, Intercontinental Hotels & Resorts have a less than stellar campaign on Twitter. They have a World Concierge account in addition to a few individual property accounts. Many of the individual accounts have less than 300 fans, making them basically ineffective forms of marketing.
Shangri La Hotels & Resorts have an almost non-‐existent presence on the social media networks that are so prevalent in the United States. They have no official Facebook group or fan page. The only Twitter accounts are for the Austin and Vancouver properties. Each account is lacking followers and quality content. There are only two Shangri La properties in North America, so it is possible they do not focus on Facebook and Twitter because the majority of their guests do not use these platforms.
It is interesting to note that most of the companies based out of China have a much
smaller presence on Facebook and Twitter than do companies based in North America and the UK. That is not to say that the Chinese population does not use social media sites. There are other social media networks that are utilized in China that were not researched for this project, including Renren, Kaixin001, 51.com, QQ, Cyworld, and Mixi.
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Survey Results Companies/properties who responded:
1. Mandarin Oriental Boston 2. Charles Hotel 3. Hotel Murano 4. Luxor Las Vegas 5. Tiara Hotels 6. Westin Bonaventure 7. Omni Hotels 8. Millennium Hotels 9. Four Seasons 10. Marriott (responses from 3 different levels of management) 11. Sheraton Portsmouth 12. Starwood 13. Two unknown sources
Exhibit A. Categories of company respondents:
The online social media survey was distributed to 152 individuals and companies within the lodging industry. Of those 152, we received 16 completed surveys, for a response rate of 10.5 percent. Of the respondents, twelve were categorized 4-‐5 star companies, 6 were mid range (3 star), and only one was a budget property.
Some respondents chose more than one category because they represented national chains with 25
more than one brand. The main market segments of the companies surveyed were business travel and groups and convention business. To better differentiate the knowledge of the individual taking the survey, they were asked to rank their knowledge of social media in general. One respondent was a novice, two were advanced beginners, three claimed to be competent, nine proficient, and one claimed expert status on social media. It is good to see that most people feel confident in their knowledge of social media so it can be applied to their perspective companies.
Exhibit B. Does your organization have a defined social media policy?
Of the companies surveyed, 50 percent did not have a dedicated position responsible for overseeing social media. The 50 percent of companies who did, either had that position at the corporate level, property level, or both. Eighty percent of companies surveyed did have a defined social media policy, either at the corporate or property level. So even if there isn’t a specific person at a property responsible for overseeing social media, the company has some type of guidelines for everyone to follow.
The actual position 26
that was responsible for social media varied from company to company. In six companies, the Corporate VP of Marketing was responsible for social media, while the Property Director of Marketing was also a common title, and sometimes both had some responsibility.
Some newer positions include VP of eCommerce and Director of Interactive Media. When asked if they use an outside agency to assist with their social networking campaign, 69 percent of companies responded no. It may take some time before companies are willing to invest in outside help to promote themselves through social media. They first need to see if social media is an effective form of marketing before investing in it.
Exhibit C. Frequency of social networking site comment monitoring
As far as monitoring comments on social networking sites, 75 percent of companies monitor their sites every day, and the rest monitor every week. Searching on their own was the most common form of monitoring comments on sites. Many companies are beginning to employ dedicated software as well. Some companies use a combination of their own search, dedicated software, and even outsourcing the task. Information collected from
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social media, such as guest feedback or reviews, are reported at company meetings, both at the corporate and property levels.
Exhibit D.
Internal use of social networks
Companies were asked about their use of social networks both internally (within the company) and externally (Facebook & Twitter).
Sixty-‐three percent of companies feel using social networks internally for knowledge sharing was important, while 12.5 percent felt it was not at all important. Fifty percent of companies feel it is important to use internal social networks for training purposes. Fifty-‐six percent of companies felt it was important for ongoing dialogue – similar to the Best Buy BlueShirt Nation community. Companies had mixed opinions on the use of internal social networks for recruiting purposes.
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Exhibit E. External use of social networks
When asked about the importance of using social networks to respond to guests, 100 percent of the companies felt this was either important or extremely important. This shows they understand the need to create the dialogue with guests.
Eighty-‐one percent of companies felt using social networks for promotions is either important or extremely important.
Sixty-‐Three percent of companies felt using social networks for advertisements is important or extremely important. This goes against the findings in Chapman’s study of social network users who felt advertisements by brands were obtrusive.
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Exhibit F. Benefits; Social networking sites:
Interestingly, only 38 percent of companies strongly agree that social networking sites are an integral part of their marketing strategy, while 60 percent strongly agree they should be an integral part of the marketing strategy. This shows a gap in actual versus ideal practices. Fifty-‐six percent of companies strongly agree that social media provides valuable feedback and two-‐way communication with their customers. Ninety-‐four percent of companies surveyed either somewhat or strongly agree that social media generates positive word of mouth about their company, and only 31 percent strongly agree that it can result in negative brand perceptions. When asked whether or not using social media can result in increased revenue, 13 percent somewhat disagreed, 31 percent were not sure, and 56 percent somewhat or strongly agreed. Opinions are still mixed as to whether using social media can increase the bottom line.
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Exhibit G. Social networking sites are used:
Of the companies surveyed, 56 percent said they somewhat agree that their company uses social networking sites to increase brand loyalty, promote special events, promote special offers or pricing, communicate corporate news, and to adapt their offerings. Ninety-‐four percent of companies use social networking sites to respond to guest feedback.
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Exhibit H. Importance of social networking sites
Companies were asked to rate specific social networking sites on a scale from 1 to 5, from not at all important to their company to extremely important to their company. Overwhelmingly, the most important social networking site to hotel companies is TripAdvisor, with a rating of 4.94. The second most important was Twitter at 4.50, followed closely by Facebook, at 4.31. The least important social networking site to hotel companies is MySpace, with a rating of 2.33. Corresponding to that, 93 percent of companies never or rarely post content on MySpace. 56 percent of companies post content on Twitter every day, and 37 percent tweet at least every week.
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Exhibit I. Success measurement
As for success measurement, most companies seem to be on the right track. 63 percent say they use customer engagement, that is fans posting to them, as a success measure. Only 25 percent of companies are still using fan base numbers to measure their success. A detailed report of the survey findings can be founding appendix B.
Discussion & Conclusion
The findings from the research survey and Internet search shed light on the current practices of hotel companies with regards to social media marketing. Most United States companies have some presence on either Facebook, Twitter, or both. The most interesting finding from the survey is that hotel companies feel TripAdvisor is more important than either Facebook or Twitter. TripAdvisor is considered a social network because users create a profile before writing reviews about hotels and attractions. It has become commonplace for travelers to research hotels on TripAdvisor before making a travel purchase. Unfortunately, a bad review on TripAdvisor can have lasting effects on a hotel if 33
comments are not monitored regularly. Additional research should be conducted on the impact that TripAdvisor, a social network, has on hotels.
The volume of data available and the rapid exponential growth of social networks
sites make it difficult to accurately measure true usage patterns and practices. By the time you collect and analyze industry data, it is already outdated. This is where it becomes important for hotel companies to start investing in outside agencies for help with their social media campaigns. It’s becoming too burdensome for each property to monitor individual social media comments on a regular basis. Software has recently been developed that can help companies cope with the onslaught of social media information. For example, Revinate is a relatively new software application created specifically for hotel companies to track and manage all mentions of the hotel across multiple online channels. The software automatically tracks all reviews and social media for the company, as well as their competition. It can change the way companies approach their social media campaign. Current clients of Revinate include Intercontinental Hotels, Andaz, Trump Hotel Collection, and Kimpton Hotels. At this point, there is not enough data available that shows a direct link between social media marketing and increased revenue, so hotels are hesitant to invest money in outside help. Unfortunately, they are spending valuable time resources by tasking current employees with monitoring daily social media, when they could instead be focusing on overall marketing strategy.
It seems that most hotel companies researched and surveyed are using social media
for marketing to some extent. It would have been interesting to survey hotel companies that are not using social media, or not using it effectively, and ask why. Is it a conscious decision to have no presence on these platforms? Do executives feel social media detracts from the luxury brand image they are known for? If you agree with the Dow Jones 34
Enterprise Media Group publication, The Conversational Corporation, then social media marketing for any segment of hotel chain is of the utmost importance because the upcoming generation of guests are using social media on a daily basis. If hotel companies do not learn how to harness this marketing channel now, while it is in its infancy, they will be at a severe disadvantage when the upcoming generations become key demand generators.
With the rapid advancement of technology, hotel companies have to work diligently
to stay on the top of their game. It was not long ago that it became essential for hotels to have a webpage, and then an online reservation system, and now a social media campaign. All of these changes have occurred in a very short amount of time, especially compared to how long hotels have been in operation. It’s time for hotel companies to start taking social media marketing seriously and see it as an investment in the bottom line.
Limitations
The only limitation in conducting the online survey was sample size. This
was due to time available and type of distribution. The small sample size does not provide for results that can be generalized for the entire industry. It is possible the data may be skewed because many respondents were either UNH graduates, or were invited through Twitter, which shows they already use social networking. If there were more time available, the sample size would have been larger to better differentiate and randomize the respondents.
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Index of Tables & Exhibits
Table A. Companies included in Internet Search................................................................ 15 Exhibit A.
Categories of company respondents.................................................................. 25 Exhibit B.
Does your organization have a defined SM policy? ..................................... 26 Exhibit C. Frequency of SNS comment monitoring............................................................ 27 Exhibit D. Internal use of social networking ........................................................................ 28 Exhibit E. External use of social networking ........................................................................ 29 Exhibit F. Benefits............................................................................................................................. 30 Exhibit G. Use of social networking sites ............................................................................... 31 Exhibit H. Importance of social networking sites............................................................... 32 Exhibit I. Success measurement................................................................................................. 33
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Appendix A. Internet search Twitter Data
(As of February 2010)
Company Four Seasons Corporate Maui San Francisco Las Angeles Austin Lanai Seattle Tokyo Palo Alto Philadelphia Hualalai Boston Bangkok Ritz Carlton Global Laguna Chicago Mandarin Oriental Corporate Las Vegas Miami New York Riviera Maya London Washington, D.C. Boston San Francisco Intercontinental World Concierge Abu Dhabi Boston San Francisco Sydney Kansas City Frankfurt Sao Paulo Toronto Tokyo Houston Hilton Hilton Online Hilton GoSocial JW Marriott LA Live Followers 9273 1878 811 1291 1630 1112 1584 508 848 848 682 1123 857 2040 1000 376 548 764 938 716 615 446 489 300 112 1771 997 524 398 287 278 300 258 161 203 121 1768 872 696 Following 43 148 203 607 281 291 446 85 62 168 68 87 782 6 350 43 886 160 456 559 323 56 368 148 9 1618 1306 82 122 65 65 75 115 50 282 19 223 682 59 Listed 481 123 80 95 131 100 93 44 49 59 57 85 70 112 69 30 46 113 58 75 45 39 39 30 17 115 15 48 21 23 11 34 7 7 29 8 172 63 36 Tweets 1962 787 574 514 891 1632 954 206 437 967 314 700 600 6 401 7 157 155 136 491 491 111 94 122 9 734 17 251 131 136 18 59 121 32 50 82 605 712 217
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Denver Grand Rapids, MI Concierge, Costa Rica Hyatt Concierge Austin Vancouver St. Louis Irvine Shangri La Austin Vancouver Westin Las Angeles Boston Columbus Kierland (Scottsdale) Peninsula
Text Response Managing Director Vice President Marketing & eCommerce General Manager Sr. eCommerce Manager General Manager Marketing Manager Web & Communications Manager Interactive marketing manager Managing Director E-‐Commerce Executive SVP, Owner and Franchise Services Interactive Marketing Manager General Manager Director of Public Relations Director of Marketing Controller
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2.
At which level are you a manager?
# Answer 1 A Single Property 2 Multiple Properties 3 Regional Division 4 National Division 5 International Division
Total
Response 7 3 1 5 0 16
% 44% 19% 6% 31% 0% 100%
3.
Type of Hotel (check all that apply)
# Answer 1 Independent 2 Chain 3 Resort 4 City 5 Convention 6 Suite 7 Other
Response 1 12 6 4 4 1 0
% 6% 75% 38% 25% 25% 6% 0%
4.
What category does your property or company fall within?
# Answer 1 Full Service (4-‐5 Stars) 2 Mid Range (3 stars) 3 Budget 4 Other
Response 12 6 1 0
% 80% 40% 7% 0%
5.
How many properties are in the chain?
Text Response 2,500 3000+ 83 In the USA, there are 15 properties. 1000 It is not a chain. I oversee the interactive marketing efforts for two Las Vegas hotels
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6.
Please rank your main market segments, with 1 being the highest and 4 being the lowest:
# Answer 1 Business 2 Leisure 3 Groups & Conventions 4 Other
Statistic Business Leisure Groups & Conventions Other Mean 1.69 2.31 1.94 4.00
7.
Do you have a full-time, dedicated position responsible for overseeing social media? (check all that apply)
# Answer 1 No 2 Not Sure 3 Yes, property level 4 Yes, corporate level
Response 8 0 4 7
% 50% 0% 25% 44%
8.
Does your organization have a defined social media policy? (check all that apply)
# Answer 1 No 2 Not Sure 3 Yes, property level 4 Yes, corporate level
Response 3 0 4 10
% 19% 0% 25% 63%
9.
Do you utilize an outside agency to assist with your social networking campaign?
# Answer 1 Yes 2 No
Response 5 11
% 31% 69%
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10.
Whether or not your organization has a dedicated position responsible for overseeing social media, who is the executive or manager responsible for social media
policy(check all that apply)
# 1 2 3 4 5 6 7 8 9 Answer Corporate VP Marketing Corporate PR Director Corporate Brand Manager Corporate VP Operations Property GM Property Director of Marketing Property PR Director Property Rooms Division Manager Property Other
Response 6 3 3 0 2 5 3 0 0 6 1
% 38% 19% 19% 0% 13% 31% 19% 0% 0% 38% 6%
10 Corporate Other 11 N/A
Property Other Corporate Other
VP eCommerce Director of IT Web & Communications VP Ecommerce Director Marketing
11.
How often does someone in your company monitor social networking comments?
# Answer 1 Every Day 2 Every Week 3 Every Month 4 Rarely 5 Never
Response 12 4 0 0 0
% 75% 25% 0% 0% 0%
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12.
If your company monitors content social networking platforms, what process do they use? (check all that apply)
# Answer 1 Own search 2 Dedicated software 3 Outsourced 4 Other 5 N/A
Response 12 9 4 1 0
% 75% 56% 25% 6% 0%
Other RSS Feeds, Google Alerts
13.
How does your company communicate the results obtained from social media sources to other employees? (check all that apply)
Please rate the importance of your company’s use of social network platforms (externally - in front of firewall):
Not at all importa nt 1 0 0 0 0 Neither Somewhat Important Unimport nor Unimport ant ant 3 2 4 0 0 1 1 3 0 0 Importa nt Extreme ly Importa nt 4 7 2 11 1 N/ A Respons es Mea n
# Question
1
Advertiseme nts Corporate Information Responses to Guests
6 6 7 5 0
1 0 0 0 1
16 16 16 16 2
3.75 4.13 3.44 4.69 5.50
2 Promotions 3 4
5 Other
Other communicating events or activities in our communities
Statistic Advertisements Promotions Corporate Information Responses to Guests Other Mean 3.75 4.13 3.44 4.69 5.50
15.
Please rate the importance of your company’s use of social network platforms (internally - behind firewall):
Not at all importa nt 2 2 1 2 0 Neither Somewhat Important nor Unimporta nt Unimporta nt 0 2 0 3 0 0 3 3 4 0 Importa nt Extreme ly Importa nt 3 0 2 0 0 N/ A Respons es Mea n
# Question
1
Knowledg e sharing Ongoing dialogue Recruitme nt
10 8 9 6 1
1 1 1 1 2
16 16 16 16 3
3.94 3.31 3.88 3.13 5.33
2 Training 3 4
5 Other
Statistic Knowledge sharing Training Ongoing dialogue Recruitment Other Mean 3.94 3.31 3.88 3.13 5.33
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16.
Social networking sites: (choose the circle that applies to how much you agree or disagree with the following statements)
# Question Are an integral part of our 1 marketing strategy Should be an integral part of 2 our marketing strategy Provide valuable 3 feedback from our customers Provide two-‐way communication 4 with our customers Generate positive 5 word of mouth for our company Can result in 6 negative brand perceptions Result in 7 improved customer loyalty Result in 8 increased revenue Strongly Disagree 0 Somewhat Disagree 4 Not Somewhat Strongly Responses Mean Sure Agree Agree 0 6 6 16 3.88
0
2
0
4
9
15
4.33
0
0
0
7
9
16
4.56
0
0
1
6
9
16
4.50
0
0
1
8
7
16
4.38
0
5
2
4
5
16
3.56
0
2
1
9
4
16
3.94
0
2
5
6
3
16
3.63
Are an integral part of our marketi ng strategy 3.88 Should be an integral part of our marketi ng strategy 4.33 Provide valuable Provide two-‐ way feedbac k from communicati on with our our customers custome rs 4.56 4.50 Genera te positiv e word of mouth for our compa ny 4.38 Can result in negative brand perceptio ns 3.56 Result in improv ed custom er loyalty 3.94 Result in increas ed revenu e 3.63
Statist ic
Mean
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17.
Our company uses social networking sites: (choose the circle that applies to how much you agree or disagree with the following statements)
# Question 1 2 To increase brand loyalty To promote special events Strongly Disagree 0 0 0 Somewhat Disagree 2 1 2 Not Sure 1 0 0 Somewhat agree 9 9 9 Strongly Agree 4 6 5 Responses Mean 16 16 16 3.94 4.25 4.06
To promote 3 special offers or pricing To 4 communicate property news To 5 communicate corporate news 6 7 8 To adapt our offerings To respond to guest feedback To drive people to our website
0
2
1
7
6
16
4.06
1 0 0 1 0
3 2 1 0 1
0 2 0 3 0
9 9 8 7 0
3 3 7 4 2 To respon d to guest feedba ck 4.31
16 16 16 15 3 To drive peopl e to our websi te 3.87
3.63 3.81 4.31 3.87 4.00
9 Other
To To To promo increa promo te se te special brand special offers loyalty events or pricing 3.94 4.25 4.06 To communic ate property news 4.06 To communic ate corporate news 3.63 To adapt our offerin gs 3.81
Statist ic
Othe r
Mean
4.00
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18.
How important are the following social network sites to your company?
Not at all importan t 0 0 2 5 2 1 0 Somewhat Unimporta nt 1 1 0 2 1 2 0 Neither Important nor Unimporta nt 1 1 3 6 4 5 0 Importan t 6 3 4 2 4 7 1 Extremel y Importan t 8 11 6 0 4 1 15 Response s 16 16 15 15 15 16 16 Mea n 4.31 4.50 3.80 2.33 3.47 3.31 4.94
Other Yelp, FourSquare other review sites: ex. Yelp
Statisti c Mean Faceboo k 4.31 Twitte r 4.50 YouTub e 3.80 MySpac e 2.33 Flick r 3.47 Linkedi n 3.31 TripAdvis or 4.94 Mobile device applicatio ns 3.71 Othe r 3.75
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19.
How often does your company/property post content on:
Statisti c Mean Faceboo k 1.88 Twitte r 1.56 YouTub e 3.46 MySpac e 4.57 Flick r 3.71 Linkedi n 3.80 TripAdvis or 2.40 Mobile device applicatio ns 3.08 Othe r 4.00
20.
What is your success measurement of social networking?
# Answer 1 2 3 Customer engagement (fans posting to you) Building a fan base (from 0-‐1000 fans in X days) Fan retention (can you maintain your fanbase) Total
Response 10 4 1 1 16
% 63% 25% 6% 6% 100%
4 Other
Other all of the above + referral traffic
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21.
Please rank your knowledge of social networking in general:
Text Response Whilst widely accepted as the way forward for competing hotels, there is still too much hesitation and disregard due to a lack of understanding in senior management.
There are too many comments made towards "only for the young ones" when these portals provide the direct way to our customer. "Expert" is a term I use loosely when describing my position. Obviously, it is often joked about that no one is ever truely an "expert" due to the ever-‐changing, fast paced growth of the Social Networking / Social Media scene. I do my best to stay on top of the networks that are most important to our company and our brand.
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