“Like” and “Check‐in”: how hotels utilize Facebook as an effective marketing tool

“Like” and “Check-in”:how hotels utilize Facebookas an effective marketing tool

Kelly Virginia Phelan, Hsiang-Ting Chen and Matthew HaneyDepartment of Nutrition, Hospitality and Retailing, Texas Tech University,

Lubbock, Texas, USA

Abstract

Purpose – The purpose of this paper is to examine how effectively hotels are using Facebook as amarketing tool and how consumers are interacting with the property by measuring the number of fans,customer comments, and accuracy of information provided.

Design/methodology/approach – This paper is based upon a content analysis, inquiring into 100hotels’ Facebook pages.

Findings – Findings demonstrate that the use of Facebook features by hotels varied widely. Somehotels utilize Facebook solely as a means for posting property information, whereas others focus onfacilitating customer engagement.

Research limitations/implications – Literature related to the effectiveness of social media as amarketing tool within the hospitality industry is severely limited, thus this research highlights thechallenges some hotels are experiencing with maximizing the reach of their Facebook pages, suggestspossible approaches for improvement and makes recommendations for structuring social networkingstrategies.

Practical implications – Results demonstrated many hotels failed to interact with customers,provide accurate and timely information, and entice prospective purchasers by showcasing theproperty through photos and videos. Practitioners would be well served to improve upon these aspectsto better appeal to consumers and recognize a significant return on investment.

Originality/value – This study investigates the extent to which Facebook is being utilized by thetop 100 domestic US hotels. Evaluation criteria included three aspects: content information, propertydetails, and interactions between hotels and customers. Literature related to social network marketingis sparse, thus the present research is intended to provide a basis for future research and guidance forindustry professionals to best maximize technological marketing channels.

Keywords United States of America, Hotels, Social networking sites, Consumer behaviour, Facebook,Consumer perceptions, E-Marketing, Marketing opportunities

Paper type Research paper

IntroductionInternet based travel planning has experienced rapid growth in recent years. The globalonline travel market surpassed $256 billion in 2010, representing 30 percent of the overalltravel market (PhoCusWright, 2011). Global online travel bookings have been increasingand are forecasted to account for one-third of worldwide travel sales by the end of 2012(PhoCusWright, 2011). Travelers are utilizing the internet as a major information sourcefor researching destinations and booking hotel rooms. The online environment furnishestravelers with endless knowledge; providing a broadcasted platform for forwardinginformation and experiences to countless individuals who travel (Buhalis and Law,2008). As a result, the internet has significantly reshaped the tourism landscape, forcinghospitality firms to extend their established marketing strategies.

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1757-9880.htm

Received 20 July 2012Revised 25 October 201229 January 2013Accepted 14 February 2013

Journal of Hospitality and TourismTechnologyVol. 4 No. 2, 2013pp. 134-154q Emerald Group Publishing Limited1757-9880DOI 10.1108/JHTT-Jul-2012-0020

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It is evident that social media has become a vital marketing channel for reachingpotential customers and changed the way in which people learn about and ultimatelychoose products and services. Social networking has played a significant role in theway consumers research destinations, make reservations, learn about new offerings,plan itineraries and communicate with service providers. Additionally, research hasidentified interactions between the firm and consumer via social media aids instrengthening customer loyalty and improving overall satisfaction (Kasavana et al.,2010; Verhoef et al., 2010; Xiang and Gretzel, 2010). In addition to social networks,online review sites are widely available, allowing consumer generated content, such asproduct reviews, suggestions, and complaints to circulate at an incredible rate to animmense online audience (Xiang and Gretzel, 2010). This is particularly influential, as arecent study found 57 percent of online users trust customer reviews as a majorreference source (Sullivan, 2010) and 60 percent rely on these reviews when makingtravel plans (Businesswire, 2011). Due to the fact online users can interact with friends,distant acquaintances, or even strangers using the same social media platform,repercussions of a bad experience can spread rapidly.

The widespread accessibility and utilization of social networking has substantiallychanged the way in which consumers make purchases, particularly in the hospitality andtourism industry. Worldwide social network users are expected to reach 1.43 billion in 2012,an increase of 19.2 percent from 2011 (eMarketer, 2012a). With a fifth of the globalpopulation intimately connected through a few clicks of the mouse; information is readilyavailable, word of mouth feedback becomes instantaneous, and expectations of suppliersare heightened (Oracle, 2012). Facebook, as a popular social networking site, has the highesttraffic volume in terms of users and members, and maintains the largest and fastestexpanding international market share among social network providers (NielsenWire, 2010;eMarketer, 2012a). In a survey examining internet users’ expectations of a companyproviding information and customer support, a Facebook page is the most frequentlymentioned tool (Oracle, 2012). As of 2012, over 40,000 businesses have registered Facebookpages for their organization, opening their potential marketing efforts to over 800 millionFacebook users (Facebook, 2012). This impressive statistic has influenced many hotels toutilize Facebook to actively and intimately interact with target customers. Not only havehotels begun offering information and direct booking functions through their Facebookpages, but they also encourage conversations and forge customer relationships throughFacebook (Weed, 2011).

Customer centered management has evolved from the product driven marketing ofthe 1990s. Traditional product-driven marketing focuses on centering products andservices to meet the direct demand of the marketplace (Dev and Schultz, 2005).However, the contemporary perspective suggests customer-based marketing canprovide a different perspective; it positions customers at the beginning of themarketing process, rather than at the end of the demand chain (Dev and Schultz, 2005;Kotler et al., 2009). Much of this shift is due to the increase in customer demand forcontinuous knowledge about products and services that extends beyond purchase(Verhoef et al., 2010). Marketers have noticed that customers’ feedback regardingproduct/service consumption on social media can reveal variable marketing messages.As such, the trend of strategic marketing is moving toward understanding customerdemand and managing customer engagement via social media (Hennig-Thurau et al.,2010). Listening to customers is a critical step in understanding their wants and needs;

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it also emphasizes customer-driven marketing. Thus, marketers have begun toembrace social media to gain customer perspectives, strengthen marketing strategies,and reinforce connections with customers (Hennig-Thurau et al., 2010; Kaplan, 2010).

Additionally, social networking provides an outlet for the anonymous consumer tooffer feedback and utilize word-of-mouth (WOM) marketing (Trusov et al., 2009;Xiang et al., 2010). In a study of digital marketing and content, 65 percent of 350 travelorganizations planned to invest in social media spending by 2012 (Formmer’s Unlimited,2011). With the increased use of social networking by the consumer and the demand ofavailable information from businesses, there are some challenges evident as hospitalityfirms enlist social networks for marketing purposes. One of the most prevalentdifficulties with social media is the lack of a standardized benchmark. Hospitality firmsare still experimenting with the technology to determine how to best promote theirbusiness. In addition, it is necessary for marketers to learn how to engage existing andpotential customers, which is a constantly evolving art (Kotler et al., 2009). In an effort tominimize the effect of these obstacles there is a need to explore hospitality firms’ socialnetworking presence and their performance with these platforms.

Although extensive research has been completed on web-based marketing techniques(Toh et al., 2011; Xiang and Gretzel, 2010; Zhang et al., 2009), there is currently a gap inavailable literature related to the efficacy of using social networking as a marketing toolfor destination hotels. The purpose of this study is to examine how hotels employFacebook features as a means of providing property information to customers.Additionally, customer interaction, such as the frequency of customer comments,feedback received from a representative of the organization, and interactions (e.g. “like”and location-based “check-in”) are observed and evaluated. Past research has shown thata hotel’s social media presence not only has to make an “impression” to enticeprospective purchasers, but even more importantly, it must build “connections” withthem (Lanz et al., 2010, p. 1). This study determines the patterns of Facebook use byhotels, how hotels adopt Facebook features to reach out to potential customers, and howhotels embrace social media to amplify the effort of social media marketing.

The findings provide valuable information for hotels to develop their marketingstrategies through the use of social media as a platform to interact with customers andextend hotel service delivery. If hotels wish to harness social networking as a meansfor reaching customers and promoting their business, they must first understand thedynamic online environment and how social networking can facilitate marketingstrategies. By examining social media performance, hotels may diagnose problems andameliorate their current marketing practices. Further, hotels can amplify the effect oftheir social networking prowess and distinguish themselves as the leading force withinthe competitive lodging market.

Literature reviewHotel web marketing and social networkingHotels that effectively utilize their web sites as a distribution channel can differentiatethemselves in a competitive lodging market (Kim et al., 2006). In previous research,web site usability, contact information, and facility and surrounding area informationwere employed to evaluate hotels’ web site marketing strategies and design (Chungand Law, 2003; Liang and Law, 2003; Law and Hsu, 2005). Researchers suggested hotelmanagers and site administrators should focus on supplying sufficient reservation,

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facility, and contact information because these hotel web site attributes are mostimportant to online users (Rong et al., 2009). Other studies showed hotels at all levelshave room to improve the functionality of web sites and provide more complete andeffective information in order to attract potential customers (Musante et al., 2009). Thisis particularly important as the performance of hotel web sites directly influencecustomers’ use intention and purchase decision (Chung and Law, 2003; Scheuler, 2005;Schlosser et al., 2006; Parboteeah et al., 2009).

Both hotel web sites and social networking sites offer an abundance of informationand are viewed as part of a property’s overall internet marketing strategy. Many hotelsprovide hyperlinks on their web sites which are directly connected to correspondingFacebook pages. The main reason for this is because a social networking presence canfurther assist hotels in providing interactive information to a wide variety of prospectivecustomers. For instance, Generation Y is heavy engaged in social media and willing toparticipate in promotions and other online activity, whereas Baby Boomers andGeneration X embrace web site and e-mail marketing messages (Dickey and Lewis, 2010;Strutton et al., 2011). Social networking sites have more interactive features than otheronline communication channels. For instance, instant messages on social networkingsites allow customers to follow hotels’ updated information and explore a variety ofavailable products and services (Kessler, 2010). Visual aids, such as pictures and video ofhotel public areas, guest rooms and amenities, can be easily incorporated into Facebookpages and browsed by customers. Moreover, social networking sites play an importantrole in driving direct bookings (Revinate, 2012). Customers peruse Facebook pages tolearn about others’ experiences at the hotel, examine photos and reviews, and look forhotel offers and promotions for “friends”, making Facebook an ideal platform for leadingcustomers to the hotel web site and potentially a direct booking (Revinate, 2012).

Social networking and travelers’ information searchIn order for hotels to make the best use of online marketing efforts, organizations musthave a comprehensive understanding of how consumers search for and interpretinformation throughout the different stages of the selection process. Some researchstudies have addressed the utilization of social networking sites as one of the primarysources for obtaining specific information about a hotel destination (Chan and Guillet,2011; Pietro et al., 2012; Trusov et al., 2009; Xiang and Gretzel, 2010). Researchidentified three specific phases when consumers use Facebook in the hotel selectionprocess: pre-stay, during-stay and post-stay (Cox et al., 2009). In an exhaustive study ofonline travel planning, Facebook was used to seek information related to tensub-decisions during the planning or pre-stay phase: travel partners, destination,financial resources request, activities available, travel dates, attractions, transportationoptions, length of stay, accommodation selections, and dining (Cox et al., 2009). Theamount and precision of information provided regarding these ten criteria can oftenresult in converting casual browsers into buyers. Therefore, the accuracy and volumeof information available on hotel Facebook pages can positively or negatively impactthe purchase intention of potential customers (Musante et al., 2009).

In addition to searching hotel information prior to departure, customers may alsoreport on their experiences during the trip by “tagging” friends, “sharing” pictures andposting comments on the hotel or personal Facebook pages, resulting in a largeraudience pool (Xiang and Gretzel, 2010). The check-in function also allows people to


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share where they are and specific locations visited (Cohen, 2012). Moreover, the newestFacebook feature which focuses on location-generating via mobile applications, canfurther access search requests; permitting travelers to easily search information aboutthe destination while on-site. This provides travelers the ability to create tripsuggestions and inquire about restaurant and hotel recommendations based onprevious travel experiences posted by friends (Cohen, 2012). Therefore, customers’experience sharing and suggestions regarding the destinations will become a primaryinformation source as travelers utilize Facebook location-tagging functions.

Customers also utilize social networking sites to share opinions and experiencesafter visiting the property. These customer-generated comments may revealsatisfaction or discontent with the experience (Kasavana et al., 2010) and result inconsiderable influence upon casual browsers. Customers who are satisfied with theirstay at the hotel may post Facebook messages to compliment the service and hotelstaff, to ask for future reservation details, or to look for special deals. For example, onthe Crown Plaza Hotel & Resort Facebook page, several customers left messagespraising the hotel staff and others mentioned their desire to visit the property againupon return to the destination. On the other hand, Crown Plaza Hotel & Resort also hadnegative comments. One customer shared his unpleasant experience which started asnowball effect prompting similar responses from other customers. A recent studyshowed twice as many negative online reviews were posted as positive and neutralonline reviews (Garlick, 2012). As such it is imperative that hotels monitor customercomments, and then proceed to provide resolution or service recovery.

WOM and internet marketingLiterature examining consumer behavior and WOM advertising in relation to onlinemarketing is widespread (Cox et al., 2009; Trusov et al., 2009; Verhoef et al., 2010).One of the most popular topics in online marketing research examines WOMcommunication, specifically the effects of online consumer feedback on purchasedecisions. Online feedback is particularly influential in the hospitality industrywhere potential customers are making highly emotional, expensive purchases, whichare likely one-time experiences that cannot be easily duplicated in the event of servicefailure (Phelan et al., 2011; Zhang et al., 2009). One reason for the growth of electronicWOM (eWOM) is the rapid expansion of social media sites. Online social platformstransmit customers’ opinions and experiences to a worldwide audienceinstantaneously. Customer feedback, video, audio and imagery posts on Facebookpages play a pivotal role in consumer-to-consumer online marketing which translatesinto a form of eWOM where any individual with an opinion can readily share(Cox et al., 2009). Moreover, social networking sites have become an expectedmedium by consumers. In order to meet the demands of customers, ever growingnumbers of firms have established social networking sites to remain accessible totarget markets (Pantelidis, 2010). In the hospitality industry, WOM marketing hasbeen considered the basis for successful use of social networking by serviceproviders (Trusov et al., 2009). It has been suggested that consumers who purchasegoods or services based on WOM develop a long-term value for those organizations.The impacts of eWOM have also been investigated with regard to hotel bookings(Toh et al., 2011). Research shows there is a significant positive relationship betweenonline customer-generated reviews and hotel room sales (Ye et al., 2009) due to

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consumers’ concern about quality. As a result, positive and negative customerfeedback on social networking sites has considerable influence upon purchasedecisions (Casteleyn et al., 2009).

Online interactions between customers and hotelsThe use of Facebook by hotels has resulted in changing pricing structures, customerinteraction, and the distribution of services. Consumers are always looking for the nextbest deal and Facebook is often an online destination where promotions can be found(Sharifah and Murphy, 2010). For example, on the New York City Distrikt Hotel’sFacebook page, the hotel provides Facebook fans up to 25 percent off if they bookrooms through Facebook. Beacon Hotel in South Beach Miami provides 15 percent offfor Facebook friends through the “Facebook-it” function, which hyperlinks customersdirectly to the booking system on the hotel’s web site. Some hotels have “fans only”promotions which provide special offers exclusively for Facebook followers after theyjoin the hotel’s Facebook group (Hotel Marketing Strategies, 2011). Selected hotels evenprovide personalized service for customers who make reservations though Facebook.For instance, after a reservation is booked through the Trump Hotel Collection’sFacebook page, the hotel “attache” contacts customers to complete a “dossier” ofpersonal preferences, such as in-room amenities they require or newspapers they wantdelivered (Weed, 2011).

Facebook also provides an outlet for managers to monitor customer feedback,interaction, and sales opportunities in a non-threatening way (Trusov et al., 2009).While Facebook is by nature an interactive social networking outlet, some hotels arefailing to fully utilize these resources and treating social media sites solely as anotheradvertising channel on which to post promotions rather than actively engaging withcustomers (Chan and Guillet, 2011). Specifically, hotels often neglect customers’inquiries or provide feedback. These actions may result in the loss of potentialcustomers (Chan and Guillet, 2011). Moreover, failing to respond to customercomments may cause customers to develop negative images about or feelings towardthese companies (eMarketer, 2012b). Research shows when potential customers seeothers’ questions unanswered they view this inaction negatively and hesitate topurchase products or services from that company (eMarketer, 2012b).

A 2010 study of social media marketing in the Hong Kong hotel industry used fivecriteria to evaluate hotels’ social media marketing performance: attracting, engaging,retaining, learning and relating (Chan and Guillet, 2011). Attracting referred toaffiliations with other organizations and whether information about sister propertieswas provided. Engaging evaluated conversations between hotels and customers whileretaining concerned the type and accuracy of content provided. Learning examined theattempts of hotels to obtain information from customers, such as through pollsdesigned to measure customer preferences about potential promotions or amenities.Perhaps, most important, relating was the effort put forth by hotels to “personalize”contact with customers. Researchers found many hotels had difficulty harnessing thepotential of social media marketing. Some hotels had stagnant Facebook pageslacking updated information which discouraged customers from return visits to thesite. The lack of interaction between hotels and customers was also prevalent and mayhave caused customers to choose other hotels since inquiries were ignored (Chan andGuillet, 2011).


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Social networking and customer engagementStemming from eWOM, the relationships between customer engagement, loyalty, andsatisfaction are directly impacted by social network marketing (Shoemaker and Lewis,1999; Kasavana et al., 2010). Long-term customer retention is not only built andsustained by direct sales; but also through other integrated communication channelswith customers, such as e-mail, social media, or virtual communities (Sigala, 2005).Social networking provides a personalized method of community building with theintention of strengthening customer relationships. In the hospitality industry, whenexisting and potential customers utilize Facebook to gain knowledge, there are twocritical factors which must be apparent in order for the consumer to transition fromresearch and information gathering to purchase intention and future customer loyalty.First, the consumer must develop an emotional attachment to the product or servicethat is greater than comparable alternatives (Trusov et al., 2009). Once an emotionalconnection has been established the likelihood of a purchase is heightened. Favorablecomments and conversations between hotels and customers often result in extendingcustomer retention and building customer loyalty (Kasavana et al., 2010). After the saleand visit to the location occurs, customers ideally return to the site, posting positivecomments and other feedback for the company, and building upon the relationship.

In terms of enhancing customer engagement and enriching brand-related activities,hotels no longer limit their public reach by providing basic information about availableproducts and services on their own web sites; they utilize social media platforms to providepersonal service support, share events, videos, and photos with customers, and even solicitcustomers’ thoughts and experiences through polls, contests and other methods.Consequently, Facebook has become one of the most highly touted marketing tools when itcomes to stimulating customer relationships and brand loyalty (Ang, 2010; Kasavana etal.,2010). According to eMarketer (2012b), a recent study showed most marketers thinkFacebook fans can facilitate new clientele recruitment. The tracking of like and check-infunctions on Facebook has also been recognized as an effective way of fostering long-termrelationships with customers (eMarketer, 2012b). Other Facebook functions designed toengage customers, such as having a wall where comments may be posted by the publicand then responded to by hotel representatives, tracking the number of individuals joininga hotel’s Facebook group, and advertising promotions and upcoming events, are all majordimensions hotels employ to attract, engage, and retain customers.

While there is limited research about the usefulness of social networking in thehospitality industry, there is minimal investigation into how hotels implement theirmarketing strategies and actually engage customers through social networking. Thereis still a lack of research examining hotels’ social networking performance (Chan andGuillet, 2011); therefore this study focused on the utilization of Facebook, the world’smost popular social media as a marketing tool in an effort to provide valuable detailsneeded to fill this existing gap. By detecting problems associated with social networkmarketing, hotels can improve their social networking efforts and promote theirproperties through these sites.

MethodologySeveral previous studies related to social media marketing have utilized qualitative dataanalysis (Chan and Guillet, 2011; Hsu, 2012; Pantelidis, 2010; Watson et al., 2008; Xiang andGretzel, 2010). Qualitative research is particularly valuable in studies concerning

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web site heuristics, online communication, and social networking as it enables researchersto examine a topic in great detail without limiting data collection according topreconditioned survey categories (Phelan et al., 2011). Content analysis allows researchersto navigate a relatively large dataset in a systematic fashion, examine trends and identifyan empirical basis for monitoring shifts in information available, which was why it wasselected for the current research project. Content analysis also helps researchers “provideknowledge and understanding of the phenomenon under study” (Downe-Wamboldt, 1992,p. 314), examine communication directly, and provide explicit exploratory analysisthrough the coding process (Hsieh and Shannon, 2005).

Based upon previous literature (Chan and Guillet, 2011; Chung and Law, 2003; Law andHsu, 2005; Liang and Law, 2003; Musante et al., 2009; Phelan et al., 2011), 23 evaluativecriteria were developed to measure the extent of how hotels utilize Facebook. Table I liststhe criteria employed in the evaluation process. Criteria included three aspects: contentfeatures, property information, and interactions between hotel representatives andcustomers. Content features included logistical items, such as the inclusion of hyperlinks toother social networking sites (i.e. Tripadvisor), sister properties, or related travel sites;updated messages from the property, and notices about upcoming promotions(Musante et al., 2009; Phelan et al., 2011). Items examined as part of the propertyinformation consisted of the hotel’s contact details (i.e. e-mail address, phone number),facility map, amenities and services (Law and Hsu, 2005; Musante et al., 2009; Phelan et al.,2011). In an effort to measure interaction between hotels and customers, customercomments and hotel responses were recorded. Using a dichotomous scale, criteria werecoded with a “0” if the element was absent or “1” when present. Three items were recorded

Hotel content features Active functioning linksPage contains no spelling errorsHotel update/post messages on a daily basisCalendar of upcoming eventsProperty requests customer feedback via online surveyLinks to other social networking sites (e.g. Tripadvisor)Links to other web sites (e.g. local CVB or restaurants web sites)Link to TwitterLinks to sister properties

Property information Property’s promotions are currentVideosPhotosAmenity information identifiedProperty’s contact e-mail addressProperty’s address/mapProperty’s phone numberProperty’s web site linkProperty’s background/description/overview

Interactions between hotels andcustomers

Number of Facebook fansa

Number of people talking about the propertya

Number of people who “checked in” at the propertya

Customer posted feedback/comments/inquiriesProperty replied to customer posted feedback/comments/inquiries

Note: aThe actual number was recorded

Table I.23 criteria used to

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according to frequency: the number of people mentioning the hotel on their own Facebookpages, Facebook fans as measured according to the number of individuals who “liked” theproperty, and the number of individuals who used the location-based check-in functionwhile staying in the hotel. The ten most recent comments from hotel Facebook pages,posted by either consumers or the property itself were also examined. Customer commentswere analyzed according to whether comments were positive (e.g. satisfaction regardingthe hotel’s facilities or services), negative (e.g. customer complaints), neutral, or inquiredabout information (e.g. customers requesting more detailed information aboutreservations).

In order to capture a static view of the current use of Facebook as a marketing tool,data were collected over a 48-hour period in January 2012. Three researchers completedthe data collection and analysis separately then cross-checked each other’s findings toconfirm results were consistent. The sample for this study was composed of the top 100domestic US hotels in 2011 as identified by Conde Nast Traveler, a travel magazinewhich features a rating of travel destinations and facilities based upon resultsgenerated annually by a survey of nearly 30,000 readers (Conde Nast Traveler, 2011).Of the 100 hotels identified for this study, 12 did not have an official Facebook page,thus usable data was collected from 88 hotel Facebook pages. The hotels comprisingthe sample are listed in Table II.

ResultsFindings demonstrated most hotels were consistent in content information, such asproper language use, and the provision of applicable hyperlinks to other web sites suchas the hotel’s sister properties, local restaurants or attractions. As shown in Figure 1,90 percent of hotel Facebook pages contained no spelling errors by page administratorsand 85 percent had active functioning links to other pages. The attention to detailconveyed through these two features is important as it represents the manner in whichthe hotel conducts business and presents its brand image. 73 percent had links to otherweb sites, such as local convention and visitor bureaus, restaurants, or tourism relatedweb sites while 56 percent had external links to other social networking sites, such asTripadvisor.com or Yelp.com. This demonstrates hotels’ awareness of the prevalenceof social networking sites and customers’ desire to see unsolicited and uncensoredreviews. Of the 88 hotels analyzed, only 72 had sister properties. These 72 hotelFacebook pages were scrutinized to determine whether they included links to sisterhotels. Only 31 percent of the hotels with sister properties provided a link to thosehotels, indicating they failed to effectively establish network connections in an effort tostrengthen brand image. Additionally, many hotels also failed to link their varioussocial media accounts. Only one-third (33 percent) of pages included a Twitter link.This lack of Twitter linkage suggests hotels are either slower to embrace the Twittertechnology and rely more heavily on Facebook, or failed to effectively cross-marketusing multiple social networking sources.

Surprisingly, only slightly more than half (57 percent) of all pages analyzed wereupdated on a daily basis with wall posts made by a page administrator. This indicatescustomers’ inquiries and feedback may not be responded to in a timely manner, andhotels may fail to provide service recovery swiftly when negative comments are posted.

Nearly, half (49 percent) of all hotels in this sample provided a calendar of upcomingevents such as wine tastings in the hotel’s restaurant, golf tournaments, concerts and

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Ranking Property City StateConde Nastrating score

1 21C MUSEUM HOTEL Louisville KY 97.72 The Westin Avon CO 96.93 The Peninsula Chicago Chicago IL 96.44 Mandarin Oriental Boston MA 96.15 Resort at Pelican Hilla Newport Coast CA 966 Keswick Hall at Monticelloa Keswick VA 95.67 Sanctuary at Kiawah Island Kiawah Island SC 95.68 Four Seasons Resort Lanai at Manele

BayLanai HA 95

9 Four Seasons Resort Maui at Wailea Maui HA 9510 The Peninsula Beverly Hills Beverly Hills CA 9511 Kenwood Inn and Spa Kenwood CA 94.712 Inn at Spanish Bay Pebble Beach CA 94.613 Auberge Du Soleil Rutherford CA 94.514 The Chanler Newport RI 94.515 Fearrington House Country Inn and

RestaurantPittsboro NC 94.4

16 Hotel Hana-Maui and Honua Spa Maui HA 94.417 Stephanie Inn Cannon Beach OR 94.418 Rosewood Crescent Hotel Dallas TX 94.219 Four Seasons Resort Hualalai Kailua-Kona HA 94.120 Hotel Murano Tacoma WA 93.821 Amangani Jackson WY 93.622 Rosewood Mansion on Turtle Creek Dallas TX 93.623 The Wauwinet Nantucket MA 93.624 The Setai Miami Beach FL 93.425 Stowe Mountain Lodge Stowe VT 93.426 Casa Palermoa Pebble Beach CA 93.327 Ritz-Carlton Dana Point CA 93.228 Four Seasons New York New York City NY 93.129 Hotel Sorella Houston TX 93.130 Post Ranch Inn Big Sur CA 93.131 Blantyre Lenox MA 9332 Eliot Hotel Boston MA 92.833 Park Hyatt Chicago Chicago IL 92.834 Inn on Biltmore Estatea Asheville NC 92.735 The Broadmoor Colorado Springs CO 92.536 The Beverly Hills Hotela Beverly Hills CA 92.337 Enchantment Resort Sedona AZ 92.338 Ritz-Carlton New York City NY 92.339 Charleston Placea Charleston NC 92.240 Lodge at Pebble Beach Pebble Beach CA 92.241 Blackberry Farm Walland TN 92.142 Hotel 1000 Seattle WA 92.143 Mokara Hotel & Spa San Antonio TX 91.844 Tu Tu’ Tun Lodgea Gold Beach OR 91.845 Four Seasons Resort Lanai at Koelea Lanai HA 91.746 Montage Laguna Beach Laguna Beach CA 91.347 Wynn Las Vegas Las Vegas NV 91.3

(continued )

Table II.Sample of top 100 US

domestic hotels as rankedby Conde Nast Traveler

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48 Four Seasons Chicago Chicago IL 91.149 Omphoy Ocean Resort Palm Beach FL 91.150 Bellagio Las Vegas NV 9151 The Beverly Wilshirea Beverly Hills CA 90.952 Ritz-Carlton Naples FL 90.953 The Cottages & Lofts at the Boat

BasinaNantucket MA 90.8

54 Four Seasons Las Vegas Las Vegas NV 90.855 Lake Austin Spa Resort Austin TX 90.856 San Ysidro Ranch Santa Barbara CA 90.857 St Regis NYC 90.858 St Regisa Kauai HA 90.859 Watercolor Inn and Resort Santa Rosa FL 90.860 Four Seasons Resort Jackson Hole Teton Village WY 90.761 Grand Hyatt Kauai Resort and Spa Kauai HA 90.762 Mandarin Oriental NYC 90.763 Ritz-Carlton Golf Resort Naples FL 90.664 Encorea Las Vegas NV 90.565 Mohonk Mountain House New Paltz NY 90.566 The Lodge & Club Ponte Vedra Beach FL 90.467 St Regis Dana Point CA 90.468 Wequassett Inn Resort & Gold Club Chatham MA 90.469 Halekulani Oahu HA 90.370 Ritz-Carlton Atlanta GA 90.371 Ritz-Carlton Chicago IL 90.372 Four Seasons Hotel Boston Boston MA 90.273 Ritz-Carlton Amelia Island FL 90.274 Greyfield Inn Cumberland Island GA 90.175 St Regis Washington DC 90.176 The Arrabelle at Vail Square Vail CO 9077 The Breakers Palm Beach FL 9078 Stein Eriksen Lodge Park City UT 9079 Barnsley Gardens Resort Adairsville GA 89.980 Ritz-Carlton Avon CO 89.881 L’Auberge De Sedona Sedona CA 89.782 Palazzo Las Vegas Las Vegas NV 89.783 Royal Palms Phoenix AZ 89.784 Sunset Key Guest Cottages Key West FL 89.785 Ventana Inn & Spa Big Sur CA 89.786 The Cloister Sea Island GA 89.687 The Brazillian Court Palm Beach FL 89.588 Fairmont Olympic Hotel Seattle WA 89.589 Four Seasons the Biltmore Santa Barbara CA 89.590 Ritz-Carlton San Francisco CA 89.591 Trump International Hotel & Tower New York City NY 89.592 Four Season Philadelphia Philadelphia PA 89.493 Inn at the Market Seattle WA 89.494 Fairmont Kea Lani Maui HA 89.395 Ritz-Carlton Half Moon Bay CA 89.3

(continued )Table II.

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other holiday celebrations. However, only 17 percent of the Facebook pages utilizedonline surveys in an effort to gain customer feedback. The online survey or poll is aneffective tool for obtaining customer feedback about product and service offerings, andis an easy way for marketers to promote audience participation (Lodging Interactive,2009). Practitioners would be well served to integrate this highly underutilized tool intotheir social marketing efforts.

Regarding property information, most hotels performed relatively well, with 90 percentsupplying the physical address, 83 percent providing a property phone number, and82 percent posting a hotel web site link. However, less than one-quarter of all properties(23 percent) included an e-mail address where customers could directly contact theproperty. This oversight could be detrimental as it prohibits browsers from communicatingthrough electronic mail, which may be the preferred method for some customers.

22 percent of all hotel Facebook pages examined described amenities and servicesoffered. For instance, Hotel 1000 in Seattle, Washington, provided a link called “aboutHotel 1000” on which it described spa services, restaurants, meeting rooms, and thegolf course. This explicit description of hotel facilities and services gives Hotel 1000 acompetitive advantage, allowing customers to make informed purchase decisions. Inaddition, 81 percent had photos of the property, though only 38 percent uploadedvideos for consumers to view. Those hotels which provided videos typically usedYouTube to feature the property, display amenities, introduce culinary opportunities,and in some cases provide guided tours. Photos were used for similar purposes.L’Auberge de Sedona Resort in Arizona posted photos from weddings held at the


96 Fairmont Orchid Kohala Coast HA 89.297 The Phoenician Scottsdale AZ 89.298 Pitcher Inn Warren VT 89.299 The Venetian Las Vegas NV 89.2

100 Willard interContinentalWashington

Washington DC 89.1

Note: aThe hotel did not have a Facebook page Table II.

Figure 1.Percentage of hotels

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resort, then went one step further “tagging” photos of guests who were also Facebookfriends so these images could be “shared”. The hotel also initiated conversations withguests by posting messages about weddings at the property where guests would thenreply. By doing this, the resort not only showcases their venues and wedding services,but also facilitates relationship building with customers (Figure 2).

Perhaps, the most significant part of this research examined the interaction betweenhotels and customers on Facebook. As shown in Table III, the number of individuals whowere Facebook fans varied widely among hotels in the sample. 59 percent of hotelssurveyed had more than 1,000 Facebook fans, with 13 percent having over 6,000. Thenumber of Facebook fans implies a connection to travelers who comprise potentialcustomers from different worldwide locations (Hsu, 2012). Once customers become fans,automated marketing messages and updates from the hotel are broadcast on members’personal news feeds. These marketing messages offer huge potential for promotingbusiness and spreading information to a global audience. The top three hotels receivingthe most attention from internet users and with the most Facebook fans were all in LasVegas: Bellagio, Wynn, and Palazzo. Bellagio had more than 170,000 Facebook fans,Wynn had 60,000 fans and Palazzo boasted over 30,000 Facebook fans.

While the number of Facebook fans is helpful for gauging interest from potential and/orloyal customers, members may elect to make reference to a hotel on their own personalpages. There were 9,000 people who mentioned Bellagio on their personal Facebook pages,2,000 mentions of Wynn and 3,000 mentions of Palazzo. These impressive numbers reveal

Frequency (number of fans) Percentage

0-1,000 411,001-2,000 172,001-3,000 83,001-4,000 134,000-5,000 55,001-6,000 3More than 6,000 13Total 100

Table III.Percentage of hotels andcorresponding numberof Facebook fans

Figure 2.Percentage of hotelsproviding propertyinformation

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the tendency of customers to share their travel destinations and experiences online. Thenumber of individuals who mentioned the hotel on their personal pages is located inTable IV. 39 percent of hotels had more than 100 people talking about the property,however, it should be noted that number varied significantly depending on the popularityof the hotel. Customers tended to post positive comments (62 percent), and 13 percentcontained inquires requesting hotel or promotional information. Most hotels (76 percent)made an effort to communicate with customers by replying to comments and inquiries.However, 24 percent ignored customers requesting assistance or failed to respond tocustomer comments regarding their stay. The neglect of customer comments may cause alost opportunity for building a customer relationship, and create a negative image whichcould spread to other potential customers. Unhappy customers tend to advertisecomplaints through social media because they know these messages have the potential toreach an enormous online audience. In order to minimize the impact of these harmfulappraisals, hotels should utilize social media to remedy the problem immediately andprevent a domino effect of bad press. Some hotels already do this. Marriott International,for instance, has a full-time customer service team dedicated to monitoring and respondingto online customer comments. If customers voice a dissatisfied opinion, the hotel promptlyprovides some form of service recovery (Kessler, 2010).

“Check-in” was also a popular method for individuals to show their interest in aproperty as shown in Table V. Although 46 percent of hotels had fewer than 1,000 peoplecheck-in online, 20 percent had over 5,000 check-ins. The utilization of the check-infunction allows consumers to share where they are, what they are doing at the property,and who they are with, as well as providing an “on-site” opportunity for the hotel to offerrelevant services (Kessler, 2010). For instance, when customers check-in at Wynn

Frequency (number of people) Percentage

0-1,000 451,001-2,000 82,001-3,000 113,001-4,000 84,001-5,000 8More than 5,000 19Total 100

Table V.Percentage of hotels and

number of people who“checked-in” at that

property

Frequency (number of people) Percentage

0-100 61101-200 19201-300 6301-400 3401-500 1501-600 2More than 600 7Total 100

Table IV.Percentage of hotels and

number of people talkingabout those properties on

their personal Facebookpages


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Las Vegas, the hotel automatically sends a message offering a complimentary drink atone of its nightclubs (Kessler, 2010). The hotel can further utilize this location-basedfeature by sending welcome messages to customers and briefing them about upcomingevents or promotions during their stay.

DiscussionData analysis revealed several shortcomings hotels appear to have in promoting theirproperties and engaging customers through Facebook. One major problem was the absenceof an updated Facebook page. For the purposes of this study “regular” Facebookmaintenance or contact was defined as the property providing a status update or replyingto posts by customers at least once per month. 38 out of 88 (43 percent) hotels were unable tosustain their Facebook pages regularly. For example, The Ritz Carlton Battery Park City,New York, joined Facebook in 2010. However, the hotel only had four posts in 2011 and onepost in January 2012. By contrast, Four Seasons New York and Trump InternationalHotel & Tower-New York both updated their Facebook pages weekly and often on a morefrequent, daily basis. The lack of interaction via social networking by properties such asThe Ritz Carlton may lead to a disconnect between the hotel and potential clients. Thisproblem may be further exacerbated when competitors are highly active on Facebook.

In addition to regular Facebook contact, providing explicit and current information isimperative in terms of helping customers understand the property and its brand, as well asthe hotel’s facilities and services. However, only 36 percent of hotel Facebook pagesprovided property overviews, such as the features, characteristics, historical background,and mission of the property. Additionally, only 22 percent included amenity details. Thehotel overview is a critical component of the social networking site as it enables the propertyto make a first impression through visual and text descriptions. This information may bethe first point of contact the guest has with the property, and the details contained should beused to reinforce brand image by exhibiting the hotel in a positive manner. A description ofhotel amenities is essential information as guests looking for specific services maydetermine whether or not the hotel can meet their expectations based upon the inclusion orlack of detailed listings. However, results show hotels consistently underutilize presentationof this information, causing lost opportunities in which to emphasize the hotel’s assets.

Stimulating the senses through visual presentation of images and videos highlightingkey components of the property is perhaps one of the most effective methods for enticingpotential customers. For example, the Facebook page of The Peninsula Chicago Hoteldepicts vivid images with explicit descriptions, photos, and web site links forrestaurants, bars, and the spa facility. The Four Seasons Resort Maui at Wailea, Hawaii,went a step further including videos promoting the resort, restaurants, family tours,outdoor activities, and spa treatments. These visual aids not only enrich the hotel’sFacebook content, but also transmit guest experiences to other potential customers. Thepresentation of images and videos allows the hotel to distinguish its features and standout among other competitors in the market.

Although 76 percent of hotels replied to customer posts, nearly one-quarter failed toacknowledge guest communication through a response. Failing to monitor customers’posts and ignoring damaging comments could result in the loss of potential business, oreven worse, create negative WOM (Chan and Guillet, 2011). For instance, The Ritz CarltonBattery Park City, New York Facebook page contained an inquiry related to currentpromotions which was more than six months old. The lack of response presented a

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potential lost opportunity for the hotel. Kasavana (2008) suggested that while customersmay post unanticipated or unfair comments, hotels should take action to respond tonegative remarks, thus giving customers confidence management is listening to them andwilling to take advice and improve performance. Finally, 15 percent of hotels did notprovide a Facebook wall where customers could post comments, voice opinions, or askquestions. The Hotel Sorella in Houston, Texas, only provides customers with areservation function on its Facebook page. This sends a signal to customers that the hoteltreats Facebook solely as a booking method but is unwilling to interact with customers.

Hotels that update content frequently on Facebook tend to have active participationand discussion with customers. Chan and Guillet (2011) suggest hotels should utilizesocial networking sites to provide more interaction with guests, facilitate differentactivities, and use surveys or campaigns to engage customers. These efforts allowproperties to facilitate relationship building and demonstrate an active online presence.There are numerous ways to stimulate communication between hotels and customerswhich was evident in this study. Some hotels post questions, polls, or contests andwelcome Facebook fans to provide ideas and opinions in an effort to further encouragecustomer engagement. A select few hotels even post current topics, events, or newswith tag lines designed to generate customer responses. By doing this, customers arelikely to visit the page more frequently, pass referral information along to friends, andbecome more engaged in a hotel’s virtual community.

ConclusionSocial networking as a marketing technique is still a relatively new phenomenon(Kasavana et al., 2010), but this ever-growing trend has become an integral part of manyhotel marketing campaigns to reach a global audience (Lanz et al., 2010). The aim of thisresearch was to determine whether hotels were utilizing Facebook effectively. The datademonstrates the importance of Facebook as a communication channel between hotels andcustomers and while some hotels were found to readily embrace this social media, theredoes remain ample room for improvement. Findings suggest hotels should strive toconsistently update information and maintain an active online presence to network withpotential and established clientele. Providing comprehensive information not only enrichesa hotel’s Facebook page, but also offers a “one-stop-shop” for visitors (Hsu, 2012, p. 977).88 percent of travelers credit the internet as being their dominant information source fortravel planning and booking (US Travel Association, 2009), thus it is essential hotelsprovide detailed Facebook profiles. Moreover, frequently posting updates and regularlymaintaining Facebook pages demonstrate the page is current and credible.

The objective of this research was to examine the use of Facebook for marketingpurposes, but that was impossible for 12 hotels in the sample because these large-scaleproperties did not have a registered Facebook page. Creating a Facebook page is thefirst step towards harnessing the power of this social media. Once a Facebook presenceis established, page administrators can take additional steps, such as creating a group,in order to begin conversations with customers. After a hotel’s Facebook group isformed, members can invite friends and family to join and become fans; this is thefoundation of viral marketing (Lodging Interactive, 2009). The viral spread of positivefeedback via social media is based upon constant interactions between the practitionerand customers. It is imperative hotels sustain active participation and dialoguewith customers as these actions will lead to strengthened customer relationships


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and brand equity. Hotel marketers should also provide an inviting conversationplatform and create topics to motivate customers to join discussions. Unlike traditionalmarketing tools, social media allows hotels to actively monitor customer input in realtime while allowing them to gain insight into their current operations and address guestconcerns. Hotels should consider integrating various social networking media, such asusing Facebook to connect to hotel web sites, blogs, or other user-generated contentplatforms, to magnify the efforts of social media marketing.

Limitations and future researchAs this study was exploratory in nature and designed to fill an extant gap in theliterature, there were several limitations. Perhaps, the most significant limitation is thesample size. 100 domestic US hotels comprised the sample, but due to the fact 12 hotelshad no established Facebook presence, only 88 Facebook pages were examined. Itshould also be noted that the sample size was limited to US domestic four and five starhotels; thus other lodging segments, particularly economy and limited-serviceproperties are not represented, thereby prohibiting results from being generalizable toa larger population. Future studies may consider a larger sample size to gain a morecomprehensive overview of the lodging industry’s social marketing performance.

The utilization of qualitative data coding may also be considered a limitation due topotential researcher bias. To address this concern, sites were coded by multiple analysts,and inter-coder agreement of 89 percent was achieved. However, a computer-generateddataset using a web spider or other software for social network monitoring would haveallowed the researchers to examine a more comprehensive dataset and subsequentlyobtain stronger findings. Additionally, data was collected during a predetermined twoday time period. Due to the dynamic nature of Facebook’s environment, content mayhave been changing over time. Therefore, a longitudinal study involving data collectionover a longer period of time may provide more substantiated and inferential results.

Finally, this study analyzes hotel Facebook pages based on three aspects: contentfeatures, property information, and the interaction between hotel representatives andcustomers. Future research could include a segmented approach by examining Facebookpages of luxury properties, midscale chains, economy hotels, and independent properties.Additionally, a time-comparison study may be beneficial in determining consistency ofuse in regard to social media, gaps in available information pertaining to specifics of theproperty, and growth or expansion into new areas. A comprehensive investigationregarding consumer expectations, attitudes and satisfaction toward hotel Facebookpages could also be conducted. The perceived importance and value of Facebook featuresevaluated by customers could be analyzed to gain more perspectives from customers.Moreover, extending the results of this study and narrowing the analysis may provebeneficial to managers interested in grasping an understanding of customer perceptionsof a specific property. Analysis of the frequency and information patterns may also helphospitality practitioners gain more information about customers’ perspectives, improvesocial network marketing performance, and ultimately increase profitability for hotels.

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About the authorsKelly Virginia Phelan, PhD, is Assistant Department Chairperson, Department of Nutrition,Hospitality and Retailing, Texas Tech University, USA. Kelly Virginia Phelan is thecorresponding author and can be contacted at: [email protected]

Hsiang-Ting Chen is a Doctoral Student in the Department of Nutrition, Hospitality andRetailing, Texas Tech University, USA.

Matthew Haney is a Doctoral Student in the Department of Nutrition, Hospitality andRetailing, Texas Tech University, USA.

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