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Luxury Hotels Company And Consumers

University: University of the Arts London

  • Unit No: 14
  • Level: High school
  • Pages: 15 / Words 3808
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 11668

Table of Content

  1. Introduction


The increase in number of internet user along with social media has developed a new era of digital and social media marketing. In the present business environment, social networking sites such as Facebook and Twitter have provided a dynamic platform through which companies are able to establish direct relationship and communication with consumers and target audience. It plays an important role in promotion of wide range of product and services. Furthermore, these online networking tools also help companies to assess views and feedback of consumers about different products and services which have been consumed by consumers (Jobber and Ellis-Chadwick, 2012). On the basis of this information, management is able to  make improvement in quality of different products and services that are having direct impact on quality and goodwill along with brand loyalty of consumer. The present investigation is aimed to Assess Different Challenges and Tensions of Social Media Which are Addressed by Luxury Hotels Company and Consumers. In this process, Hilton Hotels and Resorts which is global chain of luxury hotels has been taken as an organization to examine negative impact of social media on hospitality business. The rationale behind selection of this topic is that hotel organizations like Hilton Hotels are facing various issues and challenges during the use of social media as an promotional tools through which company can establish direct communication with consumers. In the contrary, some  negative aspects of social media have hampered brand value and goodwill of company along with trust of consumers. Therefore, present study is going to examine the different aspects of social media that are acting as challenges for hotel organization.

Literature review and analysis

As per the research of Hollensen (2015) it has been found that social media is identified as a strong force for hospitality industry that influences management of hospitality business for managing the technological and communication strategies that have been adopted by companies as per the distinct business requirement. Further evaluation of views of different author has found two sides to the use of social networking. Firstly, it is termed as valuable and most effective tool to collect consumer feedback through which business entity is able to attract new customers and keep current customers by building strong and effective customer relationships with consumers of luxury that plays important role in strengthen the loyalty to the brand (Duggan and Brenner, 2013). However, improper use of social networking sites  have  great potential in order to destroy consumers' faith along with the market value of the brand of hospitality firms.

The research of Homburg, Kuester and Krohmer (2013) has evaluated that the social networking is addressed as very time-consuming in hospitality business. In this context, it has been found that the most of facebook users check their pages more than once a day. Furthermore, it has been found that the  average social networking user is spending more than 20 Hours per week that indicate that different pages on social networking sites are updated even more than once a day. In addition to that it has been examined that the current financial situation and maybe the underestimation of the social networking site's power, prevent the managers of hotel organization to assign full-time and appropriate resource or employees for updating social networking sites of business (Tufekci and Wilson, 2012). In the support of above argument, Solomon And et. al. (2014) have stated that avoidance of social media is termed as greatest risk or challenges for hotel organization that would be occurred if business entity will not manage regularly social media hospitality marketing. It is addressed as one of the most common marketing mistake that has been made by different companies because these companies are termed the social media as a time consuming activity.

In this context, Wang, Yu and Wei (2012) evaluated that social networking is having spontaneous and unpredictable aspects that are considered as significant challenge for hoteliers. In the present business environment, where information is moving as fast as the speed of light. As a result social media is used by companies to ensure attentiveness and responsiveness of information that would provide significant benefits to hospitality firm. Author further argued that the financial cost of social media marketing is low but the management of hotels like Hilton Hotels have to invest time in it (Goh, Heng and Lin, 2013). This is because, it  determines the frequent result,  as the company gains long term benefits from it.

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As per the research of Solomon, Russell-Bennett and Previte (2012) it has found that Social networking through social media within hospitality business is totally different from personal social networking which is carried out by an individual or an organization. In the context of hospitality business, content of social media marketing is becoming more important. This is because when something is published by hospitality firm about quality of services, range of services, uniqueness of services on a social networking page then business entity is not able to remove that particular content even if it was deleted seconds after publishing. Therefore, some mistakes and improper language of content are hampered negatively on overall effectiveness of content (Hudson and Thal, 2013). Author future argued that social networking is a broader concept in comparison of a simple sales & marketing channel. Therefore, hospitality firm or luxury hotels are facing several issues and challenges in selection of an appropriate content so as management of hotel organization has to ensure about the quality and effectiveness of the updates and data that are applied in business networking and that must be relevant and beneficial for the company (Five Challenges of Social Media Marketing and How to Overcome Them,  2012). Furthermore, business entity also faced accessibility issues because the contents of social media channels must be accessible to right target market as well as also meet laws and regulatory requirements as per the distinct business objectives.

As per the views of Hutter, Hautz, Dennhardt and Füller (2013) it is stated that several issues have been emerged in application of social media with hospitality business due to improper communication of organization's aims and objectives with particular person who is responsible for social networking or other operations related to digital marketing. The argument is also supported by the study of Sparks, Perkins and Buckley (2013) in which author has determined that management of hotel organization has to provide clear information about business goals and objectives such as increase relationship with consumers, assessment of feedback of consumers about distinct services etc. that assists to social media marketing individuals for handling various activities associated with the selection of content, advertising tools, resolving consumer's quarries.

As per the research of Sparks, Perkins and Buckley (2013) it has been evaluated that it is possible that hotel organization would get nothing at end  after investing lots of time and money while carrying out different social networking practices on social media. However, improper selection of tool of social media  leads to negative impact on overall effectiveness of different marketing channels related to social media. Author further argued that promotion of hospitality services through customers social networking is all about forming relationships with the customers and contacts (Jobber and Ellis-Chadwick, 2012). Therefore, it is essential for handler of social media with hospitality business to have a clear idea about the company's audience.  There is a relatively easy pattern for small business but is very difficult in big and luxury hotel org

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