E-tourism

Pui-Yan Lo

Student ID: STU49349

Student Name: Pui-Yan Lo
Module Code: TLH 312
Module Name: E-tourism
Centre/ College: Central Campus
Due Date: 6th May 2016
Hand in Date: 4th May 2016
Assignment
Title:
Critically evaluate the use of Social Media in a hospitality business. Use one case
study to create a new detailed social media strategy for your chosen hospitality
business.
Students Signature: (you must sign this declaring that it is all your own work and all
sources of information have been referenced)

4060 words
Table of Contents
Chapter 1 Introduction p.4
Chapter 2 Literature Review

p.5

2.1 Hong Kong Hospitality Industry

2.2 Definition of Social Media

p.5

p.5

2.2.1 Main Types of Social Media p.5

2.3 Functionality of Social Media p.6

2.3.1 Relationship Management

p.6

2.3.2 Announcement or Promotions

p.7
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2.4 Social Media in Hospitality

p.7

2.4.1 Importance of Social Media in Hospitality p.8

2.4.2 SWOT of Social Media in Hospitality p.9
2.4.2a Strength

p.9

2.4.2b Weakness p.9

2.4.2a Opportunity
2.4.2a Threat

p.9

p.10

Chapter 3 Case Study p.11

3.1 Introduction of the Hotel p.11
3.2 Hotels Social Media Evaluation

p.11

3.2.1 Facebookp.11
3.2.2 YouTube p.12
3.2.3 Instagram
3.2.4 Weibo

p.12

p.13

3.2.5 Google+ p.13

3.3 Hotels Social Media Challenges

p.13

3.3.1 Lack of Substantial Information System Management p.13

3.3.2 Lack of Clear Social Media Strategies p.14

3.4 New Social Media Strategies and Operationsp.14

3.4.1 Frequently Update p.14
3.4.2 Pinterest p.15

Chapter 4 Findings and Conclusion p.16

Chapter 5 Recommendation
5.1 To Hong Kong Government

p.17
p.17

5.2 To Hong Kong Hospitality Industry p.17

Reference

p.18

Appendix

p.24

Appendix I No. of Hotels and Guesthouses from 2010-2015

Appendix II Use of Social Media from 2005-2015
Appendix III Social Media Usage in HK
Appendix IV Facebook Page of The Luxe Manor
Appendix V YouTube Page of The Luxe Manor
Appendix VI Instagram of The Luxe Manor
Appendix VII Latest Instagram Update of The Luxe Manor
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Appendix VIII Weibo of The Luxe Manor

Appendix IX Google+ of The Luxe Manor
Appendix X Top Priorities for Social Media Content Creators

Appendix XI Average No. of Facebook Posts per Day by Top Brands in the US
Appendix XII Social Media Usage 2012-2014

Chapter 1 Introduction
For social media, it is online resources that people use to share content: video, photos, images,
text, ideas, insight, humor, opinion, gossip, news (Drury 2008:274). With the social media in
hospitality, it has the function of marketing which is different from the traditional media, which
have functions of discovery, distribution, consumption and conversation (Marchese 2007:para.1-3).
Of the allowance of website upload and create content, the first social network site had created in
1997 due. And start from 2002, numbers of a social networking site have rapidly increased, yet,
most cannot last long and faded. However, social media have gained large numbers of users and
become popular in the late 2000s of an example of 2012, Facebook had 1 billion users (Dewing
2012:2) and Twitter had about 517 million users worldwide (Thomas 2012:351-366).
With the continuously improving technology, the social media become mobile-based with using
software tool to provide a more convenient use, have a result of rapid growth in social media and
also have gained numerous young age group users recently (Organisation for Economic Cooperation and Development 2007:4-6).
The objective of the research paper is mainly to evaluate the use of social media in hospitality
industry with a realistic example of a hotel in Hong Kong would be used for evaluation.
The research paper would be divided into 3 stage; of the 1st stage, analysis in the Hong Kong
tourism would be done; the 2nd stage, a hotel in Hong Kong would be selected as case study would
be done to evaluate its use in social media; and the 3rd stage, recommendation in social media
strategy would be provided to the hotel used in case study.
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For the case study, The Luxe Manor would be selected.

Chapter 2 Literature Review

2.1 Hong Kong Hospitality Industry
According to Travel & Tourism Economic Impact 2015 Hong Kong, the hospitality industry have
contributed total 9.1% of GDP to Hong Kong (Turner 2015:1). In the end of January 2016, have
accumulated 5,225,578 of total visitors (HKTB 2016: online). Of Hong Kong provide 251 hotels by
the end of June 2015, more than 70,000 rooms can be provided (HKSAR 2015 online). Except
hotel, there are also 1,356 guesthouses in 2015 providing more than 11,000 rooms (HKTB 2016:1).

2.2 Definition of Social media

Khan (2012:para.1) have stated that social media is a global media with the technology of webbased, mobile-based or cloud-based which can provide services that users can participate through
online communication (Dewing 2012:1). Of the above saying, social media can be defined as
internet-based service that allows individuals communicate with other users.
Based on Boyd and Ellison (2007:1-3), social media is a platform for the globe to communicate
with different people as the media allow the users to create their own profile within a bounded
system and show users who share a connection. With this system, users can connect with strangers
and find what they want through the social media by sharing connection and interests.
Social Media is now a popular platform as refer to Appendix I, the research of Perrin (2015:2)
found that 76% of internet users have used social media in 2015. To compare to the situation of
10% in 2005, a rapid growth occurred in a decade (Perrin 2015:2).
2.2.1 Main Types of Social Media
Of the social media, it is mainly an internet-based service platform for users to connect with others.
Yet, social media can still be separated into different types in the market.
Social network sites (SNSs) are the most popular and high-profile social media, with examples are
Facebook and Instagram (Mayfield 2008:6). Of this type of social media, users can create their own
web pages and can share the content and communicate with their online friends (Mayfield 2008:6).
Blog, it is defined as an information sharing technology which is internet-based (Boulos, Maramba
and Wheeler 2006:1-2). For blog is a composed of text, image, video, commentary, and links to
other websites with function as online journals (Mayfield 2008:6).
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Forums, it develops with specific topics and interests such as music, car, and gadgets for discussion
(Mayfield 2008:6). Of this type of social media, it usually the used in the education of sharing
common interests and contents and would have an administrator to delete inappropriate content or
spam (Thomas 2002:352).
Even blog and forums have the similarity in sharing information in a different content format, they
do have a major difference on the management (Mayfield 2008:6). While a blog is all managed by
the owner themselves, the forum's management initiated by the members and the administrator
(Mayfield 2008:6).

2.3 Functionality of Social Media

For social media, it is a flexible platform which has different functions. Yet, using social media in
business is different from the personal usage. For the below would be the general functions of social
media in business.
2.3.1 Relationship Management
From the above chapter 2.2.1, have shown that social media, especially SNSs can create a
relationship with strangers, even with organizations (Mayfield 2008:6). For example, Facebook can
let users become a fans' of an organization by following them on the latest update (Chan, Cho &
Lee 2013:152). In addition, communication between users and organization can be made as users
can comment on their Facebook page while the organization has replied to them (Khan 2012:1).
Since people can be a fans' and communicate with the organization through social media, the
organization can do management in building a relationship with their fans' by communication
(Reitz 2012:44-45). By this, social media have a function of relationship management in business.

2.3.2 Announcement or Promotions

Social media, including Facebook, YouTube, Instagram, etc., is now part of life for people. As
Perrin (2015:2) have found that 76% of internet user have used social media as refer to Appendix I,
in which can show how the social media is common around the globe. Due to the popularity of
social media, using social media in announcement or promotions can be more effective than the
traditional way.
Other than the commonly-used of social media, also a platform which users can share information
in many types of format, such as text, image, video, links, etc. (Mayfield 2008:6), the organization
can make use of this function in doing announcement or even promotions (Khan 2012:1). Use
Tumblr as an example, organizations can do announcement or promotions by posting the latest ads
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or campaign with links to the official page of the organization in order to have the effect (Mayfield
2008:6).
Rather than the variety in formatting, functions such as hashtags also commonly used on Twitter,
Instagram, and Facebook, etc. which trending hashtags can be used in announcement or
promotions (Wishpond n.d.: online). By using trending hashtags in the content update can increase
the chance of exposure. For examples, Twitter would show the worldwide trends or trends based in
geographic locations; Google+ have the Whats Hot section showing the trends; and by Statigram
would show the Instagram hashtags trends (Wishpond n.d.: online). Since there are ways to find the
hottest trends including the trending hashtags in most social media, publics might click on those
trending hashtags which can increase the possibility of exposure by adding the trending hashtags in
the content uploaded (Wishpond n.d.: online).

2.4 Social Media in Hospitality

Since the social media have the functionality mentioned in Chapter 2.3.1 and 2.3.2, social media in
hospitality can be used in marketing by the function of online communication (Hoffman and
Novak 2012: 69-70). Also, social media can be used in management due to the communication
function which can receive customers feedback and reply (Khan 2012:1).
2.4.1 Importance of Social Media in Hospitality
For the social media in hospitality, it is important in maintaining the reputation of a hospitality and
promotion.
With social media is a powerful global platform with the active accounts in Hong Kong equal to
64% of the total population as refer to Appendix III, a hospitalitys reputation would be affected by
social media due to word-of-mouth (Khan 2012:1; GO-Globe 2015: online). With the continuous
increasing of social media users and the improving of technology, social media become more
influential with more users and easier contact by the appearance of mobile Apps which messages or
information can be spread out quickly and uncontrollably (Khan 2012:1). In this situation, hidden
threat of the quickly spread of negative comments. As according to global research by Nielsens
latest Global Trust in 2012, findings showed 92% of consumers would trust the recommendation
from friends and family, and 70% of customers trust message on online consumer reviews such as
TripAdvisor and Expedia. Based on the research findings, public found both positive and negative
comments of the hospitality posted in the online consumer review platform are trust-worthy (The
Nielsen Company 2012: online). With the comment on online consumer review platform can be
shared easily with just one click, negative comments with high credibility towards the hospitality
can spread out quickly and negatively affect the hospitalitys reputation (Khan 2012:1). Thus, social
media is important in maintaining a hospitalitys reputation.
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In addition, with the feature of social media a global platform and share information easily,
hospitality can well-used of the social media for a quick promotion and to draw publics attentions
with the quickly spread of information posted by the hospitality (Khan 2012:1). Therefore, social
media is important to the hospitality in doing promotions and announcements (Khan 2012:1).

2.4.2 SWOT Analysis of Social Media in Hospitality

For the social media in hospitality, there are factors that affect the effect. To understand more,
SWOT analysis would be done to clarify its internal factors which are strength and weakness, and
external factors which are opportunity and threat.
2.4.2a Strength
For the strength of social media in hospitality, the low cost of marketing and management. By using
social media in hospitality, can cut down the labor in marketing (Filonchuk n.d.: online). Other than
the cost saved by cut-down labor, using social media can save cost than using traditional marketing
platforms (Gregorio n.d.:para.3). With an example of Facebook, the advertisement is pay-per-click
which are geo-targeted to reach the targeted audience (Sandilands n.d.:para.3) which is better than
the traditional advertising of large investment yet might not reach the target audience (Gregorio
n.d.:para.5-7).
2.4.2b Weakness
For using social media is not only beneficial to hospitality, there is also a weakness.
One of the weakness of social media in hospitality would be the lack of measurement on
effectiveness. As according to He and Pedraza-Jimenez (2015:207), 87% of marketers have no
standard on measuring their return on investment for their social media campaigns. Due to the
difficulty in measuring the effectiveness of social media, the hospitality might miss the effective
strategy or cannot apply the most suitable social media to the hospitality (He & Pedraza-Jimenez
2015:207).
2.4.2c Opportunity
For the opportunity of using social media in hospitality, its role of global platform leads to the
possibility of reaching the big audience. For social media is a global platform, the audience group is
unlimited in scope or locations (Gregorio n.d.:para.8). Other than the unlimited of the audience,
social media marketing also can reach more than expected due to the sharing function of the social
media (Gregorio n.d.:para.10).
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2.4.2d Threat
For the threats of using social media in hospitality, it would be uncontrollable on users
(Sandilands 2016:para.5). Due to the free accessibility of social media, the hospitality cannot
control what the users would say on their social media. With rumors or negative comments might be
left and quickly spread around the Internet due to the active use of users spending an average of
30minutes on social media for every visit as refer to Appendix III, would lead to negative impacts
towards the hospitalitys reputation (Sandilands 2016:para.5; GO-Globe 2015: online)

Chapter 3 Case Study

In this chapter, The Luxe Manor, a Hong Kong hotel would be selected for the case study. In this
case study, the researcher would do an evaluation on its use of social media.

3.1 Introduction of the Hotel

The Luxe Manor is a small-size Hong Kong boutique hotel which has only 153 rooms, 6 themed
suites, and 3 outlets. Yet, it has used 5 social media including Facebook, Google+, Weibo, YouTube
and Instagram (The Luxe Manor 2016: Online). As it is using many social media, the researcher
decided to use this for the case study to evaluate the good and bad in using the social media and to
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give recommendations for its social media strategy (The Luxe Manor 2016 online).

3.2 Hotels Social Media Evaluation

To evaluate the social media that the hotel is using, showing good and problems that the hotel is
having by using the social media would be a method to evaluate its effectiveness.
3.2.1 Facebook
For the effectiveness of using Facebook in The Luxe Manor, it should be low effectiveness. As refer
to Appendix IV, the last update was 24th April 2016 and 24th March and no any action on their
Facebook page for total a month which shows the inactive update of Facebook (The Luxe Manor
2016: online). As refer to Appendix III shows 3.1 million people use Facebook every day, they
receive new information every day which an inactive account would be forgotten soon if no new
information is given (GO-Globe 2015:online).
However, they have well-used the Facebook function of posting image and words the same time.
With a research indicate 65% of information can be retained after 3-days acknowledgement with a
relevant image, yet, only 10% of information can be retained with only description (Swift
2015:para.2). As refer to Appendix IV can show that the hotel has posted with images along the
words, they can let the viewers remember the content for longer (The Luxe Manor 2016: online).

3.2.2 YouTube
For the effectiveness of using YouTube in The Luxe Manor, it should be low effectiveness. As refer
to Appendix V, the last update was 1 year ago which show the inactive update of YouTube for the
hotel (The Luxe Manor 2016: online). As refer to Appendix III indicates internet users in Hong
Kong watche more than 147 videos per month on average, the viewers will no longer remember the
channel that has no updates for a year which the effectiveness of promoting is low(GO-Globe
2015:online).
However, they have done relationship management with customers by using YouTube to connect
with customers by posting a greeting video as refer to Appendix V (The Luxe Manor 2016: online).
As refer to chapter 2.3.1, the hotel can communicate with the customers by using social media in
order to build up a good relationship (Reitz 2012:44-45). With the hotel to use YouTube to do
relationship management, it is more effective as a study shows video can draw more attention than
another format (Lloyd 2015:para.3).
3.2.3 Instagram
For the effectiveness of using Instagram in The Luxe Manor, it should be low effectiveness. As refer
to Appendix VI, only 167 followers for the page which show the page can only inform 167 people
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for the latest update immediately which is ineffective (theluxemanorhk 2016: online). Furthermore,
the last update was 40 weeks ago as refer to Appendix VII shows the inactive update of Instagram
of the hotel (theluxemanorhk 2015: online). As based on the indication of Appendix III believes that
new information come out quickly with millions of active users around the globe every day which
inactive update would lead to neglect (GO-Globe 2015:online).
Yet, they have well-used the Instagram function for promotion. As research shows content with
relevant images are more attractive with 94% more view than a content without (Mawhinney 2016:
online). With the hotel to the coupon image along with content about the promotion as refer to
Appendix VII, it can draw more attention from viewers and is beneficial to the promotion
(theluxemanorhk 2015: online).
3.2.4 Weibo
For the effectiveness of using Weibo in The Luxe Manor, it should be low effectiveness. As refer to
Appendix VIII, the last update was 6th November 2015 and 23rd September 2015 which shows the
inactive update of Weibo of the hotel (The Luxe Manor 2016: online). Due to the inactive update,
Weibo users cannot have the latest information or promotion of the hotel.
Nevertheless, they have used simplified Chinese for the content for easier understanding to the
Weibo users. As for Weibo is commonly used in the Mainland China area, the viewers can fully
understand the content due to simplified Chinese (Millward 2012)
3.2.5 Google+
For the effectiveness of using Google+ in The Luxe Manor, it should be low effectiveness. As refer
to Appendix IX, the last update was 47 weeks ago which shows the inactive update of Google+ of
the hotel (The Luxe Manor 2016: online). Due to the inactive update, Google+ users cannot have
the latest information or promotion of the hotel. Additionally, only 6 followers are following
Google+ of The Luxe Manor which shows the effectiveness is low as only 6 people are receiving
the information constantly (The Luxe Manor 2016: online).
Nevertheless, they have provided travel tips which are unique contents to attract viewers as refer
to Appendix IX (The Luxe Manor 2016: online). As refer to Appendix X shows a research resulted
in 73% of social media content creators found creating more engaging content is the most important
to attract viewers successfully which posting unique contents can draw the viewers attention
(Content Marketing Institute & MarketingProfs 2016:28)

3.3 Hotels Social Media Challenges

By the evaluation in chapter 3.2 might show some benefits of using social media in the hotel, yet
there are also challenges in using social media which some would atate below.
3.3.1 Lack of Substantial Information System Management
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As according to Abed, Dwivedi and Williams (2015:40), SMEs would have difficulties in using
social media due to lack of substantial information system management. As The Luxe Manor is an
SME which is small in structure with relatively fewer employees compare to large companies, the
hotels information system might have fewer resources and employees and cannot have substantial
management (Abed, Dwivedi & Williams 2015:42; The Luxe Manor 2015: online).
By lacking substantial information system management in The Luxe Manor, the hotel would apply
an unsuitable social media strategy easily and lead to failure in using social media (He & PedrazaJimenez 2015:207).
3.3.2 Lack of Clear Social Media Strategies
As according to the research by Forrester in 2013 shows 100% of companies with rich social media
marketing experienced that being researched found their biggest challenge in using social media is
the lack of clear social media strategies due to the short history of social media marketing and lack
of successful case (Forrester 2013: online). As The Luxe Manor is an SME, not much resources can
be put into social media management which they can only refer to successful cases in the industry
(Abed, Dwivedi & Williams 2015:42; The Luxe Manor 2015: online). However, with the situation
of lack of successful in the industry, the hotel can only learn from the mistakes (He & PedrazaJimenez 2015:206).
By lacking clear social media strategies in The Luxe Manor, the hotel requires time to find a
suitable strategy in order to be successful in using social media which might also require large
investment (He & Pedraza-Jimenez 2015:206).

3.4 New Social Media Strategies and Operations

As from the evaluation on chapter 3, problems of The Luxe Manor in using social media. Based on
the problems, new social media strategies would recommend to the hotel in order to improve the
effectiveness of using social media in the hotel.
3.4.1 Frequently Update
As according to the evaluation in chapter 3.2 shows the inactive update are the main problem of The
Luxe Manor using social media, frequently update should be the new social media strategy for the
hotel. As based on a research on How often should you post on your Facebook pages?, companies
use social media for brand awareness would post 5-10 posts each week on Facebook in order to be
successful and effective which the hotel need a more frequent update on using social media (Writer
2011:para.8).
And for the operation on the frequent update, the hotel should update at least one time per day
which is to refer to the successful cases in the US. As refer to Appendix XI shows the top brands in
the US have 1 Facebook post per day on average in order to be successful in doing brand awareness
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by using Facebook, the hotel is recommended to update at least one time per day to have the impact
of successful brand awareness (Writer 2011: online).
3.4.2 Pinterest
As research shows content with relevant images are more attractive with 94% more view than a
content without and 65% of information can be retained after 3-days acknowledgement with a
relevant image which is absolutely higher than only 10% with just description shows the importance
of a relevant image in a content, new social media of image sharing with content which is Pinterest
is recommended (Mawhinney 2016: online; Swift 2015:para.2).
Pinterest is an online pin-board as a visual bookmarking tool helping users to discover and save
ideas and users can share image they found on the Internet and upload their own photos (Pinterest
2016: online).
As refer to Appendix XII, Pinterest has continuous growth from 2012-2014 and 33.3% of growth
have recorded between 2013and 2014 which show the increasing popularity of Pinterest (Duggan,
Ellison, Lampe, Lenhart & Madden 2014:2). With using a social media with increasing popularity,
the hotel can get the opportunity of attracting the Pinterest users before others hotel users.

Chapter 4 Findings and Conclusion

Social media defines as Internet-based with services to users to have information sharing and join
online communities which also a global platform with 76% of Internet users are social media users
(Khan 2012:para.1; Dewing 2012:1; Boyd & Ellison 2007:1-3; Perrin 2015:2). For the common
types of social media, it includes SNSs, Blog and Forums with the common functionality of social
media in business are relationship management and announcement or promotion (Mayfield 2008:6;
Perrin 2015:2).
For the research findings, it divided into social media in the general hospitality and in Hong Kong
hospitality.
Social media in general hospitality have been used in marketing and management (Hoffman &
Novak 2012:69-70; Khan 2012:1). With using social media is a low-cost global platform, this
strengthen the usage of social media in hospitality and bring opportunity to hospitality (Filonchuk
n.d. online; Gregorio n.d.:para.10). However, the lack of measurement on effectiveness and
uncontrollability on social media users bring weakness and threat to hospitality in using social
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media (He & Pedraza-Jimenez 2015:2017).

For social media in Hong Kong hospitality, hotels that are SMEs understand the importance of
social media in marketing and relationship management which would use various types of social
media (The Luxe Manor 2016 online). For these hotels are usually lack of resources and fewer
employees, lack of substantial information system management and clear social media strategies for
the hotels (Abed, Dwivedi & Williams 40-42; He & Pedraza-Jimenez 2015:206-207; Forrester 2013
online). With having no clear social media strategies in the hotels, inactive update is a common
problem that recommendation of at least one update per day is required for effective brand
awareness (The Luxe Manor 2016 online; Writer 2011:para.8). In addition, an image-content
bookmarking and sharing tool, Pinterest is recommended as content with relevant images are 94%
more attractive than without and 65% of information can be retained after 3-days acknowledgement
with a relevant image only 10% can be retained reversely (Pinterest 2016:online; Mawhinney 2016:
online; Swift 2015:para.2).

Chapter 5 Recommendation
5.1 To Hong Kong Government
For the situation of the short history of social media and lack of successful cases in using social
media for business and marketing in Hong Kong, showing that Hong Kong does not have enough
experts in doing social media management for business and marketing (Forrester 2013: online). In
this situation, Hong Kong Government should put more resources and investment on training more
experts in doing social media management for business. With having experts in social media
management for business in Hong Kong, business sectors including hospitality industry can adopt
the suitable social media strategies.
5.2 To Hong Kong Hospitality Industry
As by research findings of 76% of Internet users are social media users with 3.1 million people use
Facebook every day with average spending 30 minutes on each visit, the Hong Kong hospitality
should continuous using social media due to the popularity of using social media (Perrin A 2015:2;
GO-Globe 2015: online).

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Appendix
Appendix I No. of Hotels and Guesthouses from 2010-2015 (HKTB 2016:1)

Appendix II Use of social media from 2005-2015 (Perrin A 2015: 2)

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Appendix III Social Media Usage in HK (GO-Globe 2015: online)

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Appendix IV Facebook Page of The Luxe Manor (The Luxe Manor 2016: online)

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Appendix V YouTube Page of The Luxe Manor (The Luxe Manor 2016: online)
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Appendix VI Instagram of The Luxe Manor (theluxemanorhk 2016: online)

Appendix VII Latest Instagram Update of The Luxe Manor (theluxemanoehk 2015: online)

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Appendix VIII Weibo of The Luxe Manor (The Luxe Manor 2016: online)

Appendix IX Google+ of The Luxe Manor (The Luxe Manor 2016: online)

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Appendix X Top Priorities for Social Media Content Creators (Content Marketing Institute &
MarketingProfs 2016:28)

Appendix XI Average No. of Facebook Posts per Day by Top Brands in the US (Writer 2011:
online)
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Appendix XII Social Media Usage 2012-2014 (Duggan, Ellison, Lampe, Lenhart & Madden
2014:2)

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