How Social Media Has Changed Marketing Strategies of

Hospitality Businesses in Prague

Thesis
By
Davud Akhundzada

Submitted in Partial Fulfillment

Of the Requirements for the Degree of
Bachelor of Science
In Business Administration

State University of New York

Empire State Collage
2016

Reader: Tanweer Ali

 Acknowledgement

I would like to thank my ESC mentor Mr. Tanweer Ali for his constant support and

guidance during the whole process of writing my Thesis Research. It was a great

pleasure to complete this project with the support of his rich experience and help.

Without my parents, Aghayar and Almas Akhundzada, it would have been impossible

to complete all my studies and be where I am today. I am so thankful for their support,

both financially and morally, during these four years of studies.

My final acknowledgment goes to Martina Lazarova. I am thankful for the support in

my work and career and for providing related information to complete my Bachelor

Thesis.
 Table of Content

Acknowledgement ...................................................................................................................................2
Table of Content.......................................................................................................................................3
Abstract ....................................................................................................................................................4
Chapter I: Introduction.............................................................................................................................4
Chapter II. Theoretical information .........................................................................................................6
Chapter III. Factors Influencing Consumer Purchase Behaviors ............................................................15
Chapter IV. Prague and Prague Tourism Sector .....................................................................................17
Chapter V. Personal Research ................................................................................................................19
Chapter VI. Effectiveness of Social Media Reviews in Hotel Industry....................................................30
Chapter VII. Social media in the Restaurant Business ...........................................................................36
Chapter VIII. Electronic Word-of-mouth in Hospitality and Tourism Industry .....................................41
Chapter IX. Best Practices ......................................................................................................................43
Chapter X. Interview Results with Managers .........................................................................................54
Chapter XI. Conclusion ...........................................................................................................................58
Works Cited: ...........................................................................................................................................61
Bibliography: ..........................................................................................................................................64
 Abstract

Nowadays – when around 40% of the world population has internet access and around

two billion people use social media in their everyday life – it seems very logical for

hospitality businesses to do promotions through social media tools. Most travelers use

social media and travel website companies in order to get an idea about destinations and

to book their whole trip over the internet. Using these opportunities, businesses can

reach their potential target audience very easily.

However, successful promotions are not only about using social media – they are also

about using it effectively. Specific tools, such as having good-quality pictures, paying

attention to physiological factors, conducting promotions on travel website companies

and other factors can make results very impressive.

In this document, I will define online and social media marketing and present a short

history of hospitality marketing. Then, I will discuss the top three social media

companies and two top travel website companies. Using particular cases and analyzing

them, I will be able to explain the successful and unsuccessful social media strategies of

some businesses. Moreover, through the analysis of my personal surveys and the data

from several hotels in Prague, I will be able to find out the most effective key points

(tools) related to the decision making process of customers.

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Chapter I: Introduction

Have you ever thought about what factors affect your or others’ decision-making

process while searching for hotels, restaurants or planning a trip? It is not secret that,

nowadays, almost every hospitality business bases its marketing strategies on social

media reach. During the past few years, social media has had a very large and important

role in people’s lives, and especially in the lives of travelers. My work will describe

which kind of changes have happened and which strategies businesses use to influence

traveler’s choices over the internet while they are looking for hotels, restaurants, tours

or entertainment.

My topic is important for both hospitality businesses and users (customers). Hospitality

businesses are interested in improving the effectiveness of their online social media

marketing. The more data marketers collect about customers, the more effective the

results will be because this makes it easier for marketers to choose which kind of tools

should be applied to social media marketing in order to reach potential customers. My

surveys, research of several hotels, and analysis of data will help me find the most

effective ways to use social media for marketing strategies in Prague's hospitality

businesses and these promotion methods will be discussed. At the same time, the

effectiveness of social media reviews in hotel industry and restaurant industry, the

factors that influence consumer purchase behaviors and the power of the electronic

word of mouth in hospitality and tourism industry will be discussed. These are the

reasons why my topic is important for hospitality businesses and marketers.

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The significance of my topic for travelers has to do with understanding their decision

making process, which factors they should take consideration when they make decisions

about hotels/restaurants before or while they travel. Since social media is part of our

lives, it is interesting to know how it changes marketing strategies of businesses and

how big of an impact it has on the decision making process of customers/tourists.

Research Question: How have hospitality businesses in Prague changed their

marketing strategies by using available social media marketing tools to their

advantage in order to do the most effective promotions of services and engage

customers (travelers) in particular business?

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Chapter II. Theoretical information

- II.I. Marketing –

“Marketing is the management process responsible for identifying, anticipating and

satisfying customer requirements profitably.”(17) In other words, marketing is the

action which creates demand from people for specific products or it is the process

companies use to promote or inform people about new products or services. In in the

case of hospitality businesses, the services are usually more involved.

- II.II. Tourism –

There are a lot of definitions which might describe and explain the term “tourism.”

According to the World Tourism Organization (WTO) website, “Tourism comprises the

activities of persons traveling to and staying in places outside their usual environment

for not more than one consecutive year for leisure, business and other purposes not

related to the exercise of an activity remunerated from within the place visited.”

- II.III. Traveling –

Traveling is the movement of people to different places than their usual place. A

traveler is the person who is involved in that action. There are different types of

travelers: people who travel inside their own countries to different cities, people who

travel to other countries, and finally, people who take long trips (usually around a year)

and move toother places for different reasons (study, work, etc.)
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- II.IV. Hospitality Businesses –

According to the article “Introduction to Hospitality” by Mr. Murray Mackenzie and Dr.

Benny Chan, “Hospitality is the act of kindness in welcoming and looking after the

basic needs of guests or strangers, mainly in relation to food, drink and accommodation.

A contemporary explanation of Hospitality refers to the relationship process between a

guest and a host. When we talk about the 'Hospitality Industry', we are referring to the

companies or organizations which provide food and/or drink and/or accommodation to

people who are away from home.” (18) Hospitality businesses include hotels,

restaurants, car rentals, and airline services. However, in my thesis research I will be

analyzing only hotels and restaurant services in Prague.

- II.V. Social Media Networks –

“The term refers to the wide range of internet-based and mobile services that allow

users to participate in online exchanges, contribute user-created content, or joining

online communities. The kinds of internet services commonly associated with social

media (sometimes referred to as “Web 2.0”) include the following” (19):

Blogs

Wiki

Social Network Website

Status-update services

Media Sharing sites

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Online Travel Websites – These kinds of websites have also been included in the list of
social media networks during my thesis research.

- II.VI. Social Media Marketing –

Social Media Marketing (SMM) can be described as the use of social communication

and online networks for marketing. The main goal of social media marketing is to gain

brand awareness, and to have a positive connection andcommunication with the

customer about specific services or products.

The sources I used and researched to answer the question of “What is Social Media

Marketing?” offer different answers:

 “Social Media Marketing is the process of gaining or attention

through sites” (1)

 “It is the umbrella term for the wide variety of tools and applications that give

the Web its social capabilities” Miletsky (2)

 Social media marketing (SMM) is a form of Internet marketing that

utilizes websites as a marketing tool. The goal of SMM is to produce content that users

will share with their social network to help a company increase brand exposure and

broaden customer reach.” (whatis.com)

A broad definition would be that social media marketing is a way of promoting and

creating stronger engagement between product/services and potential customers through

social/online media.
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- II.VII. Potential Audience –

Potential Audience is the people/customers -- in this case, online users -- who have the

potential to be engaged and affected by marketing strategies through online

advertisement. This is one of the most important factors to be successful, because you

do not really want to target everyone, because it is costly and meaningless to focus on

everyone. To know the potential customer, based on his or her country, gender, age,

interests, and other available information can help you reach the most potential

customers worldwide.

- II.VIII. Evaluation of Marketing

In order to understand social media marketing, it is important to know the evaluation of

marketing research. Marketing is an exchange process, Boone and Kurtz assert. Usually

people exchange money for goods or services in order to satisfy the needs of each other.

Clothes, food, and mobile phones are on the list of goods that can be purchased in

exchange for money. Sometimes, these purchases can be non-physical, which means

they are services such as health care, education, etc. In most cases, these purchases

consist of combinations, such as drinking coffee at a café -- in this case, the purchased

coffee represents the good and the action of the waiter is a service. The five “eras”

(steps) of marketing can be divided in the following way: (1) the production era, (2) the

sales era, (3) the marketing era, (4) the relationship era and, finally, (5) the social era.

This concept was developed by Boone and Kurtz, and will be explained and discussed

below.
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The production Era: The approximate time period of this era is prior to the 1920s.

Producers focused on production orientation. During that time, mass production

increased and there was an increase of options as well. However, customers still had

few choices for most products. The basic concept was that “if you build it, they will buy

it.” Again, the main reason was that customers did not have many choices and new

products were entering the marketplace. However, the reality was that most new

products and innovations failed. The reason was that those products needed to fulfill

needs of the marketplace, since these products were something new for people. Boone

and Kurtz give an example of Henry Ford’s horseless carriage, which “took a while to

catch on because people were afraid of motor vehicles: they spat out exhaust, stirred up

dust on dirt roads, got stuck in mud, and tied up horse traffic” (3) It took a long time for

salespeople to change people’s mind about these products and services.

The Sales Era: The approximate time period of this era is between 1920 and 1950.

Producers focused on sales orientation. The idea was that, if producers are not going to

get involved in sales, the consumers are not going to purchase their products of services.

So it's important to always put effort on the promotion of a product and in using new

tools for selling. Still, some organizations tried to use these kinds of tools to push the
 11

customers to purchase their services, which mean those companies tried to sell what

they produce rather than producing what athe market needs. Sales calls, direct e-

mailing, printed advertisement and more are examples of these kinds of tools. Of

course, these tools are not pleasant neither for the market nor the customers; instead,

they create high risk for the market and dissatisfaction and in anger customers.

Marketing Era: This era covers the time period since 1950. Producers focused on

consumer orientation. This is because producers realized that they should not focus on

offering many product choices, but instead on increasing customer satisfaction by

taking into consideration the needs and wants of the customers and trying to be better

than the competitors in different ways. That concept is healthier for the market than the

concepts followed in the previous three eras.

Relationship Era: Producers focused on relationship marketing. the basic concept of

this era is to create better and longer term relationships with customers, as well as

suppliers. This concept is effective when it comes to costs but also to help form long-

term relationships. Which means it is less costly to keep current customers happy than

trying to attract new customers. Keeping current customers happy builds a strong belief

in the brand and ensures future engagements.

Social Marketing Era: This is the final, current era, referred to as the Social Marketing

era.
 12

Social Marketing era is described by Marketingmri's website as:

“The newest to evolve, it holds that the organization’s task is to determine the needs,

wants and interests of target markets and to deliver the desired satisfaction more

effectively and efficiently than competitors in a way that preserves or enhances the

consumers’ and the society’s well-being.“

- II.IX. Online Marketing Basics

In order for an average-size hotel to be very successful on social media marketing, the

operators need to understand and observe fully how social media is working for hotels.

Usually, companies start with Facebook and Twitter accounts. However, as an example,

Four Seasons Worldwide has pushed on further with social media. In their case, there

are a few small details that make a big difference:

 I can mention their Twitter accounts, which are localized, individual Twitter accounts

for each property. This is a really smart move and much more effective than grouping

all customers into one main Twitter account. It helps the properties find their potential

customers more easily, focus on them and have an individual conversation.

 Facebook is used inthe same way as Twitter , with different profiles for each property.

Additional facilities and special offers are also available on the profiles.
 13

 YouTube account and channel – in which they post short videos – which is connected to

the other social media profiles. These short videos help the properties promote their

services, creates a positive image about the hotel, and helps the customers make better

decisions.

 Furthermore, they have also created applications or Widgets for smartphone users who

are traveling. This is another useful way to reach people worldwide and make their life

easier.

- II.X. Traditional and Nontraditional Marketing

What is traditional Marketing? The Marketing-schools.org website answers the

question by stating: “Traditional marketing is a rather broad category that incorporates

many forms of advertising and marketing. It's the most recognizable types of marketing,

encompassing the advertisements that we see and hear every day. Most traditional

marketing strategies fall under one of four categories: print, broadcast, direct mail, and

telephone.”(13)

Basically, traditional marketing is the one most commonly used. This type of marketing

method is more effective than nontraditional marketing for most industries. This

marketing has been used for a very long time used and includes printed marketing or

printed advertisement .

How Traditional Marketing is different to Social Media Marketing?

 14

Traditional Marketing is fixed and unchangeable. This type of marketing is also

“commentary limited” and sometimes you cannot reach the target audience in real

(needed) time. On the other hand,Social Media Marketing is instantly updatable, which

means you can post at any time and deliver the content you need; it is also unlimited

when it comes to real-time commentary. Another problem of traditional media is that

the archives are poorly accessible, while any content posted on social media can be

reached at any time.

We can separate these marketing methods into finite and infinite. Traditional marketing

is more limited than Social Media Marketing. With social media, there are infinite posts

and content you can share during the day and deliver the necessary message to users or

potential customers. At the same time, this content is not controlled, which means

marketers are free to share the content they want; traditional marketing, on the other

hand, is more controlled. Another difference between these two types of marketing is

that in Traditional Marketing, people don't always have a chance to participate or share,

which means they do not always get involved. It is absolutely different for Social Media

Marketing, in which customers or followers have a chance to get involved, participate

by liking, sharing or commenting on the content. “The Internet, and the software

developed to run on it, has made it simple for anyone to publish and distribute content.

It has also made it simple for anyone to access that content. The realm of social media

is about collaborating, generating content, sharing, and most of all, connecting.” (14)
 15

Chapter III. Factors Influencing Consumer Purchase Behaviors

Before analyzing marketing strategies of the hospitality businesses, it is better to

understand who the customers – as people who decide to purchase a particular product

or service – are. There are a few common factors that are the most important. For

starters, customers can be divided into two groups, which are Consumer Market and

Business Market. The consumer market is the one we need to analyze. “Consumer

market refers to customers who buy hospitality services for personal consumption; they

are the end users of the services.” (18) As an example, people who buy airline tickets,

pay for a hotel for their stay abroad, and visit traditional restaurants during their visit are

included in the consumer market. It is very important to understand their behaviors, and

know the factors that influence the decision process of these customers. According to

the “Introduction to Hospitality” article by Mr. Murray Mackenzie and Dr. Benny Chan,

there are four main factors that influence the purchase behaviors of customers:

Cultural: “Every culture has its own values, perceptions, wants, and acceptable

behaviors; and these are likely to be used as a frame of reference for consumers when

purchasing hospitality services.”(18) Since the Cultural factor is one of the most

important ones, this factor should be considered during social media marketing,

including targeting the right people, as well as picking the proper context of the posts,

pictures, etc. For example, if you would like to attract people from Muslim countries, it

is important to respect their believes and daily behaviors – as an example, hotel

management would need to build or separate a place for Muslim people to pray during

the day.
 16

Social: “Consumers’ buying decisions can be strongly influenced by such social factors

as their families, friends and peers, and social status.” (18) As an example, if the family

has a child, that can influence their decision process, as they most probably would

prefer family-friendly hotels or hotels with bigger room space. On the other hand,

people who consider themselves as belonging to a higher social status, most likely will

choose hotels with more facilities or luxury properties.

Personal: “Consumers’ buying decisions may be influenced by such personal

characteristics as age, occupation, lifestyle, personality, etc.” (18) When targeting

potential customers, these personal factors should be considered. As an example, older

people might prefer hotels around cultural buildings and in a convenient location, while

young people would prefer place to close to clubs, parks, and attractions.

Psychological: “Psychological factors such as motivation, perception, learning, beliefs

and attitudes are likely to influence consumers’ buying decisions.” (18) Information

about new facilities or services in the property, might change the purchasing decision of

customers. So while targeting people and posting content on social media or on

websites, property managers needs to be careful about the context in which they post

about their own beliefs. All these factors can influence the decision making process

negatively as well as positively. Hospitality businesses can make better marketing

strategies if they research their potential customers properly and collect enough

information about their Social, Personal, Psychological and Cultural status.

 17

Chapter IV. Prague and Prague Tourism Sector

Prague is the capital city of the Czech Republic and heart of Europe. Currently, Prague

is rated 6th among 25 cities as the top destinations in the world on Trip Advisor for

2015. Prague Castle, Charles Bridge, Wenceslas Square, and Old Town Square are the

most famous places to be visited while in Prague.

According to the Czech Statistical Office (CZSO), around 6.6 million people visited

Prague in 2015, and around 16 million overnight stays have been recorded. (9)

In the year 2015, 1.2 million visitors stayed in 5-star hotels, while 5.2 million visitors

chose 4-star hotels. Accordingly, 5-star hotels had 2.7 million and 4-star hotels had 13.2

million number of overnight stays recorded. (9)

According to “The Hospitality Sector in Europe” report, “The Czech Republic

experienced the fourth highest growth rate across Europe between 2000 and 2010, at an

annual rate averaging 9% per annum in nominal terms. This largely reflects the 2004-

2008 period, which saw rapid expansion in a range of Czech industries (including

hospitality), stimulated by the entry to the EU and the trading opportunities that

presented.” (10)
 18

Statistics shows that the number of tourists increases every year and the Prague tourism

industry has been very successful over the 10 years. According to the Prague City

Tourism website, Prague occupies a preeminent position, both in terms of its share of

foreign tourists and in terms of tourism receipts. For 2013, Prague contributed CZK

29.5 billion to the national budget, or 33% of all public revenues. (12)

The Source Markets – Most visitors to Prague come from other European countries,

with the United Kingdom and Germany leading the list. In addition to that, Prague is

also popular among tourists from Russia, Italy, USA, Poland, Slovakia, France, Spain,

the Netherlands, Austria and Japan, according to the website of Czech Tourism (11)
 19

Chapter V. Personal Research

V.I. Demographics

In this part of the Thesis Research, I analyze the effect of Social Media activities on

consumers and the decision making process of hospitality businesses. Using online

survey tools and Google, I have also recorded a hundred responses from random

travelers. Responders were people who currently live in Prague as students, as well as

several travelers who are visiting or have visited Prague. Nationalities have been chosen

randomly, as different nationalities responded to the survey, including Czech, Greek,

Kazakh, British, Turkish, Korean, American and 40 other different nationalities. The

respondents were asked to fill out fifteen questions. Those questions will help me

understand which kind of social networking websites those people use, which kind of

hotels they prefer, how often they review profiles of hospitality businesses, how

important is the feedback of guests on social media profiles of hospitality brands and

other, more specific questions.

The first three survey questions identify my survey responders. By specifying the

nationality, age and sex of the respondent, I can better understand who these people are,

where they are coming from and how old they are.

As I mentioned above, more than 40 different nationalities from all over the world

participated in the survey, with most of the responders being people between 18 and 28

years old (92% of the total participants). Of the total number of participants, 60% are
 20

female and rest are male (40%). This kind of distribution makes my survey results more

or less accurate without considering distribution of the respondents by gender.

V.II. Results

The fourth and main question was about frequency of traveling. I made a note about

excluding going back home in order to make the results more accurate, since a lot of

participants might be living abroad. Surprisingly, people travel more than I thought

while I was originally creating the survey. For example, 32% of the participants travel

three/four times a year, 30% of them twice a year and 15% of them travel five or more

times a year. These numbers indicate most participants are traveling and engaging with

hospitality brands, travel websites, travel agencies and their social media profiles. In

addition, these people approach every trip differently.

The following question identifies how many of these trips include a personal choice of

hotel (accommodation). Around 43 people responded that they are always the person in

charge to make the choice of place to stay while they are traveling as tourists. In

addition, 22 of people responded “twice” and 23 people marked “once”. Very few
 21

people (around 11) marked “never”.

the following question relates to social networking websites. In this part of the survey, I

decided to find out what type of social media profiles the participants have.

Not surprisingly, 96% of the participants have a Facebook account, with Instagram

following a close second (at 76%) and YouTube account with by 75% . The numbers

show that, all around, 75% of the participants have at least one social media profile.

It is not secret that with every passing day, social media and user-generated feedback

are becoming more important for hospitality businesses to get consumers engaged.. In

addition, the purpose of this survey is also to identify why some of the hospitality

brands are more successful than others. Including in the definition of being successful is

achieving higher price and higher occupancy rate.

The next question describe the preferences/choice of hotel types. Based on the results,

we can see that the budget of the participants and the price they are willing to pay for a

hotel room. Accordingly, 37 participants have chosen “Moderately-priced

hotels/resorts” and then 22 people marked “Economy Hotel/Resort.”Next is “Full

Service Hotel/Resort” and “Luxury Hotel/Resort” marked equally by 15 people. The

rest of the participants voted for “The Cheapest Hotel/Resort,”

 22

In the next question, I have asked respondents how often do they interact with the

Social Media Profiles of the hospitality businesses, like sharing posts or commenting, or

any kind of reaction. Surprisingly, 55% of the participants responded “Never.”

However, when I asked the next question, “Before you plan your trip, do you check the

social media profiles of the hospitality businesses (TripAdvisor, Facebook, Instagram),”

86% of the answers are “YES.” A comparison of the results of those two questions is

attached below:
 23

Based on the results of these questions, we can conclude that respondents like to read

and check the social media profiles of hospitality brands before their trip, however,

they less likely react to posts, comments, or share pictures.

With the next two questions, I tried to learn how social media profiles of the hospitality

businesses are used to make decisions before or while they travel, and how important is

TripAdvisor feedback of previous guests/visitors/tourists ideas about the hospitality

brand. Participants had the choice to mark their ideas on the 1 to 6 scale, where 1 means

“Not Necessary” and 6 means “Very Necessary.”

“How important are social media profiles of hospitality businesses to help you make

decisions (hotel, restaurant, café) while or before you travel?”

 24

- Results were not surprising for me: social media in nowadays a very important factor,

especially in the hospitality industry. Around 80% of the respondents chose 4, 5, and 6

on the scale, which means these numbers indicate “Very necessary” on the scale or

quite close to the “Very Necessary” choice. Most people (28 %) chose number 5, while

only t 6% chose number 1.

How important is the feedback of previous guests/visitors/tourists ideas about a

specific hospitality business? (TripAdvisor rates, social media comments, number of

likes)

- The majority of the participants (around 70% of them) chose 5 and 6 from the scale,

which means that feedback is “Very Necessary” (number 6) or very close to “Very

Necessary” (number 5). This also shows how important this is for their decision making

process .
 25

Chris Anderson did the same kind of research on the same field on his “The Impact of

Social Media on Lodging Performance” article. The analysis finds are similar to our

survey results and research. His findings were as follow (4):

- The number of consumers checking reviews on TripAdvisor before booking a hotel

room has grown over time. This is also true of the number of reviews people read before

making a decision about a hotel.

- Data from Travelocity shows that a review score increase of 1 point (on a 5-point scale)

allows the hotel to increase price by 11.2 percent and not suffer any losses regarding

occupancy.

- The study uses data from Review PRO and STR to understand the impact of reviews on

hotel pricing, revenue performance, and consumer demand.

The study shows and confirms that user reviews are important not just for the

satisfaction of the customers but also to get a larger market share and be able to increase

prices while keeping the same occupancy (or to have better occupancy). Findings assert

that an increase of 1 percent in online reputation can increase 0.54% of the occupancy

as well. On a scale from 1 to 5, if the hospitality brand can increase its reputation by 1

point (for example from 3 to 4), then that brand can increase their price by 11.2 percent

and be able to keep the same occupancy. (4)

Related to those two questions - regarding feedback from previous guests -- Anderson’s

research can support my survey results.

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The chart above summarizes how many days before customers visit TripAdvisor in

order to check out the reviews. “A little more than one-fourth (26.5%) of TripAdvisor

visits occur in the last five days prior to the reservation, with the remaining three-

quarters roughly equally spread out over the other 55 days. This may be an indication of

how guests’ research intensifies just prior to making the purchase decision. The close

proximity (to the purchase) of consumer visitation to TripAdvisor perhaps indicates that

user reviews are some of the final and potentially pivotal criteria in the hotel selection

process.”(4)

Next question on my personal survey list was: Why/How do you select a Hotel?
 27

Not surprisingly, Price and Location are the main factors for most people while

choosing accommodation (Hotel/Resort): 90% of the participants selected Location and

83% of them selected Price as the most important factor. “Positive Online Reviews”

was selected by 71% of the travelers. This part of the survey results will be discussed

more deeply on the “Best Practices” section of the Thesis Research.

Next Survey question I want to discuss is “During the trip, how often do you

post/check-in/tag/share location while you are physically at the hotel/restaurant or in

any hospitality business?”

This question helped me understand how often photos are shared by guests, and how

frequently guests check in the location while they are traveling. This is also another

waythat the reputation of the hospitality brand may increase or decrease, . In this area,

66% of the respondents engaged at least once during the trip, with only 34% of the
 28

responds asserting that they never engage in any social media activity while they are

traveling for tourism.

The last question asked on the survey is: “Which type of engagements on social media

do you prefer.” The purpose of this question is to understand and have an idea of what

is considered the most attractive or satisfactory way for customers/social media users to

enjoy advertisements or posts by Hospitality brands. Here, 52% of participants say they

respond better to Photos, while 25% of the participants prefer Traveler Reviews to have

a better view and understanding of the brand. Video choice is next on the list as a

preference, with Status and Tweets getting the least votes (only 4%). This part of the

survey results also will be discussed broadly on the “Best Practices”section of the

Thesis Research.

V.III. Conclusion of the Survey

Findings were very interesting and, in certain areas, very surprising. The Personal

Survey helped obtain related information about people’s behaviors and ideas while they
 29

travel. In addition, the different countries and nationalities that participated made the

survey results more accurate. This helped establish how necessary are social media

profiles of hospitality businesses for people's decisions while or before they travel and

how important is the feedback of previous guests/visitors/tourists ideas about specific

hospitality business to the participants. Based on their choices, how often they post on

social media about their journey and other sections covered, I have been able to narrow

down a specific view about the topic.

My personal survey and findings from the results helped me understand how the

customers make a decision and which factors they take into consideration before they

plan their trip or during the trip, as well as helped me have a better overview of specific

topics. Personal findings also assisted me in comparing the different research results

from different authors. To know which kind of engagements people prefer, how

necessary are the social media profiles of hospitality businesses for travelers, and which

factors they consider when select their accommodations and more. This important

information will also help and support me on the rest of my thesis research.

Furthermore, the following survey results will help me come up with better questions

for the interview with hotel managers in Prague, which will also be part of the thesis.
 30

Chapter VI. Effectiveness of Social Media Reviews in Hotel Industry

Nowadays, the use of social media platforms in online businesses concentrate mostly in

the relationships among people – sharing ideas, leaving feedback, rating the business

and posting photos reflecting the reality of a place or service. Sharing ideas on social

media and the power of that communication are known as Word-of-Mouth (eWOM).

Without a doubt, this is one of the most powerful ways to shape the costumer's

overview about the services of a particular hospitality businesses, especially the type of

business hotels provide. Word-of-Mouth will be discussed broadly in upcoming

chapters.

An article published in the “International Journal of Hospitality Management” called

“The effectiveness of managing social media on hotel performance „by Woo Gon Kima,

Hyunjung Limb, and Robert A. Brymer, analyzed the way social media ratings affect

overall performance of hotels.

Findings are as follow:

H1. A better overall rating leads to greater hotel performance (21)

Studies show that most travelers prefer to take into consideration reviews and rating of a

business before they purchase, and this includes planning their journey throw internet,

“To be successful in business, one must understand how customers perceive the product

or service attributes their importance and performance when compared with other

competitors. The importance of 'being competitive' and 'offering competitive advantage'

 31

has been recognized for some years. In the hotel environment, where competition

dominates, hoteliers must study the strengths and weaknesses of the product or service

they provide and accurately done their importance and performance. “(23) It is clear that

to be at the top of the rating system for TripAdvisor is a competitive advantage. We can

assume the same about social media platforms: if the business has more followers and

page likes on Facebook, this is a competitive advantage, since the management posts

can offer related content or promotions, improving the chances to reach more people.

H2. The number of online reviews is positively related to hotel performance. (21)

The number of reviews is significantly important when it comes to high rating on social

media or Travel Agency websites. More reviews means more popularity and more

popularity of the product or service is more likely to lead higher sales. Another point is

that in order to be on the list of top rated and best choices on TripAdvisor, a property

needs to have a higher number of reviews and at the same time these reviews should

be highly rated. That is how the TripAdvisor hypothesis works. It means if you have

few reviews – even if they are with the best rating (5 out of 5) – it does not allow you to

be at the top of the list.

H3. A higher response rate to negative comments in online reviews leads to greater

hotel performance.(21)
 32

Social Media Platforms and Online Travel Agency websites are one of the faster and

easier ways to create communication between customers and service or product

providers. Meanwhile, responses from property owners or managers are another very

important factor for overall rating of Hotels and for the increase in the satisfaction of

customers. At the same time, it is also a good way to share positive feedback with future

website or platform visitors. Customer online reviews and ratings are not always

positive. Negative Online reviews or lower rated services or products mean low

satisfaction and failure for the business. If the guest describe his or her dissatisfaction,

hotel management needs to respond to that review and try to solve the problem. These

complaints can either be easily solved or cannot be solved at the moment. For example,

if a guest is not satisfied with the variety of cookies in the breakfast room, or if a guest

is not satisfied with the cleanliness of the room – in these cases, the problem can be

easilysolved and management can simply apologize for not meeting the expectations of

the visitor. If the dissatisfaction is about the location of the building or complains about

a small, elevator, this type of problems cannot be solved in a day. Still,guest review

need to be addressed to show respect and care. A research paper (by Woo Gon Kima,

Hyunjung Limb, and Robert A. Brymer) also shows that the way that management

responded to the reviews has an influence on customer satisfaction. On the other hand,

if the hotel management totally ignored the negative or positive review, it will damage

the reputation of the business. (21)

VI. I. Increase of Brand Loyalty

 33

What is Brand Loyalty? “Brand loyalty has been described as a behavioral response and

as a function of psychological processes (Jacoby and Kyner, 1973). That is, brand

loyalty is a function of both behavior and attitudes. Repurchase is not sufficient

evidence of brand loyalty ± the purchasing practice should be intentional. Brand loyalty

includes some degree of commitment toward the quality of a brand that is a function of

both positive attitudes and repetitive purchases.”(22)

Why is Brand loyalty important and how is it related to social media profiles? When

several choices of hotels or brands are offered, people usually choose the one they have

had good experience with previously. We can mention Holiday Inn as a very good

example of brand loyalty. Holiday Inn is on the first hotel chain that created a branded

service. Branded service means that by hearing the brand name, customers

automatically imagine the standards of the service. This way of marketing allows

businesses to build a repeat customer cycle. This type of marketing strategy helped

Holiday inn increase the revenue by increasing the occupancy of the properties. (22)

This type of marketing strategy is a long-term strategy and would work better for chain

hotel brands. However, I think it is a great strategy for small hospitality businesses as

well. Benefits can include:

- Growing revenue – Since it is a long term strategy, repeating guests means repeating

income and the business can earn more from one customer
 34

- Decreasing marketing costs – Since the guest stays loyal and every time comes back

and stays in the same hotel, it means management does not need to market constantly to

new customers, so it helps the business cut down on costs .

- Less Operating costs – Loyal customers do not need to get information about the

facilities or the services the business provides, so it means less engagement with the

employees. At the same time, repeated guests already have all their personal details in

the system, so it takes less time for receptionists – time they can use instead tobuild

better connection with the guest.

- Recommendations – Loyal customers always share their positive feedback with friends

and people they know. This increases brand awareness and purchases of the product or

service in the future.

- Less Price Sensitive Customers – Loyal customers are willing to pay a few Euros more

to the brand they know than pay a little less to the competitor and worry about the

services. This means that, to loyal customers, price is less important since they are

satisfied with the service.

Brand Loyalty is one of the most important factors in the hospitality businesses. It is

not about just reaching the potential customer using different kinds of marketing tools,

but it is about keeping these customers for a lifetime. Using social media platforms,

these customers can be updated all the time about new facilities and new services .

“Brand loyalty is crucial in the hospitality industry because repeat business constitutes a
 35

large percentage of room and food sales. Brand loyal customers resist competitors' price

cuts and help hospitality firms maintain high occupancy rates.” (22)
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Chapter VII. Social media in the Restaurant Business

The restaurant business is a type of hospitality businesses. Likehotel brands, restaurant

brands should also use every opportunity to develope social media marketing. Without a

doubt, social media has a huge impact in the operations of restaurants. How is it

different than traditional marketing? As we discussed in the hotel industry section, the

main difference is the direct communication with the potential customer, the ability to

respond the questions and provide the necessary information.

What are the main benefits of Social Media Marketing for such businesses? If we look

at it from a financial viewpoint, this kind of marketing is definitely low cost. When

starting asocial media promotion, it costs nothing to set up a profile and start promoting

your business. Another positive side of this type of promotion is the ability to get

feedback from customers. This way, management can evaluate their own performance

and take into consideration suggestions and complaints of the visitors. Finally, a better

customer relationship --as we discussed in previous chapters about Just-in-time

marketing -- is one of the main characteristics of this type of marketing.

Same as in the case of Hotelsstrategy, restaurants can also use social media marketing to

set two or more goals, such as increasing the restaurant's revenue, reaching new

customers, and increasing the prestige of the brand. However, not everyone would agree

that social media increases the revenues of a business. In fact, it can be very difficult to

measure the Return on Investment for Social Media. If you start a conversation with a

potential customer and at the end you attract them with offers or discounts and the
 37

customer visits the property, in this case you can be sure we have increased sales.

However, it is almost impossible to measure the return based on the property reviews or

if the customer rates the restaurant.

In this section, I will not spend much time discussing the financial return of social

media investment, but I will be discussing the benefits a restaurant businesses can

receive from social media marketing.

Just as in the hotel industry, managers of restaurant businesses need to know who their

potential customers are and what they want to achieve through social media. At the

same time, it is necessary to know where the potential customers are and which age

category they want to attract and through which social media profile.

Related research had been done by Gary M. Thompson Ph.D. in his “Social Media Use

in the Restaurant Industry: A Work in Progress“ article. Survey findings look to

whether all restaurants need to focus on social media marketing. The short answer is

“no.” Based on the seat counts and social media use, we can confirm that social media

use and a focus on the social media marketing is more beneficial for bigger restaurants

(200+ seats) than small restaurants (1-100seats). The main reason for this is that big

restaurants need more alternative ways to fill out every single seat in the restaurant;

every empty table is a loss of revenue for the property.

 38

Age/Demographics: It is also important to know the age category and demographics of

your potential customers and which social media network they use. The Restaurant.org

website suggests that since 67% of internet users are on Facebook, it is good idea to

start from there. (16) Most Facebook users are adults between the ages of 18-29 and

mostly women. Within the same age group, only 16% of internet users are on Twitter;

most users reside in urban areas. (16)

The case of “SOHO Restaurant and Lounge” can be as a very good example of the use

of social media by a restaurant in Prague. SOHO restaurant is famous for its different

kinds of food design – they claim to offer the“most fashionable food in town” – and

their unique atmosphere and property design . Not only is it a good attraction for

tourists, but a lot of local people also visit SOHO.

“SOHO was created from a story inspired by the atmosphere of the famous Manhattan

district. A cosmopolitan place … Arts district … A variety of colors … A place that

never sleeps … Diversity.” (Soho.cz)

Instagram: Currently, SOHO Restaurant and lounge has 1584 followers on Instagram

and they post daily basis – pictures of the foods they have on the menu and design of

the property, but also good pictures taken by guests who have visited SOHO restaurant.

Facebook: In terms of opportunities to share information with visitors or potential

customers, Facebook is more useful than Instagram. This means customers can get
 39

information about the location andopening hours, as well as having access to guest

reviews and rating on the company's Facebook profile. SOHO has 13080 page likes on

their Facebook profile, as well as 385 reviews. Every post gets more than 1000

reactions every time. Another reason why SOHO is a good example, it's because every

post they publish they take into consideration all Czech AND non-Czech speaking

people. Their posts consist of English and Czech content at the same time. Different

menu choices, new offers, and special menus are main parts of the posts.

The article mentioned above by Gary M. Thompson Ph.D. presents the following

findings that I found interesting and related to the topic:

“Some examples of consideration of target market in the decision process for whether to

implement social media marketing are as follows:

• Social media marketing is crucial for larger restaurants, but perhaps less so for smaller

restaurants. Restaurants with larger seating capacity usually have more significant

advertising needs linked to filling each seat. Social media provide a low-cost medium

by which to increase advertising;

• Restaurants that target families with children, such as theme restaurants, may glean

from these results that similar restaurants are not using social media;

• Restaurants targeting single individuals may find social media a more effective means

of advertising; and

• A target market in the 30–49 age range should be a compelling reason to implement a

social media strategy in order to remain competitive with other restaurants targeting
 40

those same individuals, whereas a restaurant targeting an older customer base may find

social media less effective.” (15)

In conclusion, I believe the customers’ dining experience is much more important and

should be in first place, above the service providedor their popularity on social media.

However, it is clear that a higher Trip Advisor rate andgood reputation on social media

allowsrestaurant owners and managers to easily increase prices while keeping the costs

and service the same. This would lead to higher revenue.

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Chapter VIII. Electronic Word-of-mouth in Hospitality and Tourism

Industry

Electronic word of mouth is known as the ideas of the travelers, customers and

product/service users ideas that are shared among people. Nowadays, online reviews

and online interpersonal impacts are increasing in all industries. This is especially true

in hospitality and the tourism sector, where it shows an even bigger impact. Based on

these influence, marketers have been forced to change their marketing strategies, use

different kinds of advertisement methods and try to increase their online reputation.

“Interpersonal influence and word-of-mouth (WOM) are ranked the most important

information source when a consumer is making a purchase decision. This influence may

be especially important in the hospitality and tourism industry, whose intangible

products are difficult to evaluate prior to their consumption. When WOM becomes

digital, the largescale, and anonymous, ephemeral nature of the Internet induces new

ways of capturing, analyzing, interpreting, and managing online WOM.”(20)

There are several reasons why people use this type of communication, For starters, ,

people want to share their positive or negative feelings about a service or product with

future potential customers. On the other hand, this is the way people want to thank the

property owners or managers for their positive experience or complain through the

internet. Another reason is that some people simply enjoy sharing their experiences

with other people.

 42

Several researches have shown that most of people make their decisions based on

reviews on social media networks, or they change their mind based on these shared

experiences. This topic will be discussed extensively in the coming chapters. In recent

times, Online Travel Agencies have a huge power in the hospitality businesses. Trip

Advisor, Expedia, Booking.com, Hotels.com and others are doing much better now

than traditional travel agencies. The reason for this is that people decide based on the

reviews, comparing prices, and comparing facilities on the website. However, in the

past, people made decisions regarding hotels, airline, and tours based on the word of the

travel agency, which means they were offered fewer choices and they needed to choose

among them without having any experience or feedback about the property.

Marketers or property owners/managers should take this aspect of marketing very

seriously and findways to increase a positive view of the WOM. This should be one of

the main promotion strategies of hospitality industry members. Better online reputation

means more occupancy of the property and, at the same time, a chance to provide the

same service and increase the prices can lead to a boost in revenue.
 43

Chapter IX. Best Practices

It is a fact that Social Media Marketing is one of the most important areas of a

successful marketing strategy for modern business nowadays. However, successful

promotions are not only about using social media, or just setting social media profiles. It

is also about doing so effectively. Using specific tools such as having good quality

pictures, using physiological impacts, doing promotions, engaging the audience,

delivering unique and short content and other factors can improve results greatly. After

long research and survey results, I concluded fthat the ollowing factors are the main

ones to be embraced in order for hospitality businesses to be successful in social media

marketing:

IX. I. Unique Marketing Message

As it's the case with other kinds of business marketing fields, social media should have

its own marketing message. In order to be successful, your marketing message should

be unique and clear. The purpose of this message is to communicate with your potential

customers and catch their attention, since these people are the future customers of

hospitality businesses. The Mandarin Oriental hotels are a good example among Prague

Hotels:,

“Built on the site of a former 14th century monastery, Mandarin Oriental, Prague is both

a five-star luxury hotel and a wonderfully preserved piece of history. Blending

contemporary design with period features, we offer a truly unique hotel experience.”

(Mandarinoriental.com/prague)
 44

In a few words, the message gives a positive and clear overview to the customers. By

mentioning the building is an old monastery and it is piece of history, the potential

customer understands which kind of room design and ambiance the hotel has. The

message also promises a unique hotel experience and mentions that this is a five-star

luxury hotel.

Another great unique marketing message among five-star Prague hotels is the one

presented by Boscolo Prague:

“Prestige and Refinement. In the capital, magical by definition, where the passing

epoques have left indelible signs, rises the elegant neo-classic building of the 5 Star

Luxury Boscolo Prague.”

In this example, the brand gives the message that the hotel is in the capital cityby

mentioning the city is a magical place. As in the Mandarin Oriental example, Boscolo

Hotel Prague uses its message to deliver the description of the building, which in this

case is elegant neo classic.

IX. II. Images and Website Design

Since customers plan to book hotels or choose restaurants online, property owners can

use this to their advantage by adding good-quality pictures and improving the design of

their website in order to catch the customer’s attention. In this case, social media
 45

marketing has more power than websites. Based on my personal survey, I can ascertain

that travelers prefer to see pictures rather than reading tweets or statuses. In the last

question asked on the survey: “Which type of engagements on social media do you

prefer?” 52% of the respondents answered “Photos.”

IX. III. Audience

There is an old marketing question that goes,"Does everyone who can buy from you

knows about you?” Property managers should know their audience and based on that

information set up advertising and Social Media promotions. As an example, Kings

Court Prague Deluxe Hotel and Hotel Paris Prague are the top five-star hotels in

Prague. Their customers are usually business people, middle and upper class people

with good salaries. Usually, price is not the main factor used by these travelers to

choose hotels or restaurants; instead, they expect top quality, perfect settings, and

professional service. There are also some hotels specialized on honeymoon trips or just

couple/romantic stays. Kempinski Hotel can be a good example for this type of hotel

choice. Design Hotel Neruda Prague or Hotel Suite Home Prague are 4-star hotels

whose audience/customers are looking for better location, quality of building, and, most

importantly, they are also price sensitive. In order to maximize profit and increase

satisfaction, property management should set their prices accordingly based on the their

service and audience.

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IX. IV. Content

Another factor to consider to be successful on Social Media Profiles, is the content you

deliver to followers. Regardless of social media platform, the content shared should

catch the visitor’s eyes in the first few seconds while making them interested in future

posts. Developing cross channel marketing strategies is a key factor and through those

channel, businesses should be able to deliver consistent content or messaging in order to

reach customers.

Content Plus website delivers very interesting facts on that topic, in their article named

“The anatomy of Content Marketing.” The facts presented are as follows:

- Blogs that are hosted on company sites receive 55% more visitors

- Companies that have blogs get 97% more inbound links

- 6 of every 10 Facebook or Twitters users will rather recommend a brand they trust or

know

- 67% of Twitter users would rather recommend brands they are familiar with

and follow

- Purchase decisions are more likely to be influenced by blogs than magazines

(63% more likely)

Part of the research is about how much social media profiles and posting content affects

sales for different companies. Results and findings are the following:
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- Social media content can help boost sales: 53% of companies find new customers

through Twitter, 61% via LinkedIn and 67% through Facebook

- 63% of the companies polled confirmed that social media content has increased the

effectiveness of their marketing

- 60% of consumers feel better about a brand or company if they able to visit their site

and read related content (Contentplus.co.uk) (6)

So the main focus should be on content in social media, as this would make people

more interested and it will increase marketing effectiveness. Content should include

relevant information about the hotel and its story and at the same time provide

information about the local area and around hotel. Delivering useful and interesting

content will engage customers/followers.

“Fundamentally, it is not just about content.

It is about identity, relationships and content”

- Amit Singhal, Google Fellow

IX. V. Respond and Engagement

Another important factor to be successful on social media marketing is the response you

get on those social profiles and the effectiveness of posts engaging readers.

Hotel Suite Home Prague’s TripAdvisor profile can be a good example. They hold the

65th position out of 669 Prague hotels. Currently, 610 reviews have been submitted and
 48

all of these reviews have a reply from management. That is why it is a very good

example of a Trip Advisor profile. In order to have good reputation, management

should respond the same way to positive reviews and negative reviews. There is an

interesting survey by “Forrester” (forrester.com), where more than 2100 travelers

participated. Findings support the ideas I have mentioned above:

“According to the survey, lodging businesses benefit from responding to both positive

and negative reviews. Of those surveyed, 79% of travelers said a good management

response to a bad review reassures them, and 78% said a good management response to

a good review makes them think highly of the hotel. But, be mindful of your tone – 60%

of travelers said an aggressive management response to a bad review makes the hotel

look worse. These findings are compelling and good to keep in mind when monitoring

traveler reviews and posting management responses.”(7)

Just-in-time marketing – For this kind of marketing strategy, the Foursquare Mobile

Application is a perfect example. This application is location-based social media. There

are opportunities to get presents or a welcoming drink from the management when you

use the application to check in in the business you are. Including in those opportunities

are free night at the hotel, complimentary glass of wine or champagne, or upgraded

rooms. Basically, this social media creates temporary connection between guest and

management or hotel workers. When you check out from the business location, you lose

the connection, and no opportunities will be available anymore.

 49

How do you create different kinds of engagements on different social media

profiles?

Using special games and competitions in Facebook and Twitter you can make engage

guests. You can also use special hashtags, sponsor contests such as “Picture of the

week,” share contest and offer the winners small prizes or some offer that will not cost

much for the business. In the end, the profile will be shared and will collect more

followers or likes, which means even more engagement.

Edge rank Algorithm – That is the algorithm that Facebook uses. The most interesting

and more engaged posts appear first on the row of the Facebook user’s News Feed.

“Edge Rank is the Facebook algorithm that decides which stories appear in each user's

newsfeed. The algorithm hides boring stories, so if your story doesn't score well, no one

will see it. The first thing someone sees when they log into Facebook is the newsfeed.

This is a summary of what's been happening recently among their friends on Facebook.

Every action their friends take is a potential newsfeed story. Facebook calls these

actions "Edges." That means whenever a friend posts a status update, comments on

another status update, tags a photo, joins a fan page, or RSVP's to an event it generates

an "Edge," and a story about that Edge might show up in the user's personal

newsfeed.”(8)
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Why should business care about the algorithm? The simple answer is that if you take

into consideration that algorithm and post interesting content, you can have more

engagement, more likes, and more fans. If the content the brand shares is either boring

or too long, then if the first person who sees your post does not engage (such as like,

comment or share), then the algorithm does not allow the post to show up on others’

News Feed.

Buddha-Bar Hotel Prague is another good example of a successful Facebook profile.

Buddha-Bar is 5-star hotel in the heart of the Prague. They have currently 4672 page

likes. The usually share content that is related to Prague and the hotel itself. Another

good point about the guest engagement is that they share pictures that have been taken

by guests at the hotel. By doing this, they build good relationships with the customers,

and show real pictures of the hotel to the page visitors, rather than sharing professional

images only.

IX. VI. Special Offers, Packages

While sharing and posting interesting content and making visitors engaged,

management can use this opportunity to increase their sales through special offers, and

by suggesting packages to the page visitors or previous guests.

Hotel Residence Agnes and Boutique Hotel Seven Days, for example, have different

kinds of offers and packages. Hotel Residence Agnes (which holds the first position on
 51

Travel Advisor among Prague hotels) is offering free transfer for guests, while Hotel

Seven Days offers exclusive discounts up to 25%. These kinds of offers and discounts

always attract people, and by doing this, you can have an advantage over other hotels

if the guest chooses the brand based on Online Travel Agency (OTA) websites.

Moreover, packages make decisions easier, which means guests purchase a package and

do not need to worry about other things, such as transfer, accommodation, leisure

activities and other offers that will be included into the package.

IX. VII. Conclusion

“Each social media channel or platform has its own set of distinct characteristics that

makes it ideally suited for certain applications. Marketers in charge of a hotel’s social

media strategy must ensure that each social channel is deployed to serve not more than

two or three clearly defined objectives,” explains Siddharth Begwani, who has long

experience with management and consulting, in his “The Social Media Mandate for the

Hotel Industry” article. (5) This means hotels need to develop different social media

profiles with different goals/characteristics.

For example, in the following “Mapping Social Media Channel Suitability to Purchase

Lifecycle Stage” table below, Siddharth Begwani separated social media profiles into

five groups, which are the main goals of the profiles. For example: related promotions

and deals should be promoted through Facebook and Twitter. Games and contests, such

as events, should be set on Facebook. Personalized services and communication should

 52

be based on Twitter, and finally Reviews/Complains/Feedback should be set basically

via Trip Advisor and Twitter.

On the next table, where Mr. Siddharth separates social media profiles based on pre-

purchase, purchase and post-purchase. These terms are explained as follows:

“• Pre-purchase: During this stage, marketers share information about the hotel, the

amenities and facilities the place can offer, unique features, any important attractions

around, etc. At this stage, hotels can also try to generate excitement for their brand

through things like contests and special events.

• Purchase: At this stage, hotels will focus on promotions and sharing relevant deals.

They will also assist customers in the purchase process by providing information and

personalized services.

• Post-purchase: This is the

stage during which any

customer feedback received

can be put into practice. For

example, if there were

complaints or grievances,

these need to be assessed and

 53

addressed. This is the remarketing stage, in which customer feedback must be

acknowledged and grievances redressed. If there's customer contact, if should be done

in a non-intrusive but personalized manner.

On the Channel Mapping part, Siddharth Begwani classified Facebook and TripAdvisor

as a pre-purchase as well as a post-purchase channel. However, Twitter is more of a

“purchase” channel and, at the same time, included in the “post-purchase” channel

category.

Property managers should not use all social media profiles for the same purpose , as

customers/travelers use these social media profiles for different aims. That is what can

be concluded from that section.

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Chapter X. Interview Results with Managers

In order to compare my findings and conclude this thesis research, I decided to conduct

interviews with different hotel managers. Interviews were done with the General

Manager of the Design Hotel Neruda Prague (Gajova Vendula) and the Managing

Director of M&J Hotel Advisor (Martina Lazarova). Special questions were asked in

order to understand the performance of social media promotions in hotel marketing.

First question was: “How would you evaluate (how important) your Social Media

promotions and impacts of Social Media on the overall reputation and overall sales of

the hospitality business you manage? “

Answers of the managers and director were different. Mrs. Lazarova, who is the

General Manger of the Hotel Suite Home Prague in Prague (four-star hotel) evaluated

the social media promotions as a very important aspect, especially for four and five star

hotels. She also added that it is a communication channel at the same time. Mrs.

Gajova, on the other hand, explained that “I wouldn't say it has a significant impact on

overall reputation or sales.” She also added that it is good, however, for their visibility

and increasing of awareness about the hotel.

Next question during the interview was about comparison marketing strategies now

and in the past, based on their experience. “How would you describe/compare
 55

Marketing Strategies of the hotel(s) you manage in the past and right now? 5-10-15

years comparison based on your experience.”

Answers were as expected. They declared that it has changed a lot, and emphasized

changes about technologies. Mrs. Lazarova claims that 15 years ago, printed marketing

was the main tool; 10 years ago, it was online marketing. Now, a mix of all types, with

Social media and bloggers being a very important factor. While Mrs. Gajova mentioned

that she does not have so many years of experience in the hospitality business, she

claimed that it has changed a lot, from leaflets and adverts in catalogues to technologies

and online platforms nowadays.

Next, I wanted to understand how hotel management has changed their promotion tools

from the time Social Media started to grow into a bigger tool. This is important because

it is clear that they cannot use the same methods and same tools as in the past. Even if

this was possible, they would not be as effective. The next question asked was: “How

did you change your hotel promotion tools since Social Media Marketing turned into a

bigger tool?”

Mrs. Lazarova answered: “We are investing less on printed media, and we are more

focused on how to measure all marketing - now there are more tools to help us measure

it.” Mrs. Gajova explained that they are trying to have accounts on almost each

important social media platforms and trying to post updates often.

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“How have sales and daily occupancy rate changed since you started using Social

Media Promotions, and have you seen results and why?”

Answers of the managers to that question were almost the same. Mrs Lazarova said that

it is one of the channels now; it is not massive but there is conversion. She also added

that it is more of an image tool (so it can lead to purchase decision). Meanwhile, Mrs

Gajova claimed that sales don't depend too much on social media promotions (at least in

the hospitality business). Instead, it is more about visibility and updates of news and

create awareness for new clients.

The aim of the next question was to understand how easy or difficult, and how much

different social media marketing is than traditional marketing strategies: “Do you think

Social Media promotions are easier than Traditional promotions?”

Mrs. Lazarova’s answer was that it is easier to target, which means easier to target the

people based on age, nationality, interests and more. Mrs. Gajova mentioned that it is

much cheaper than traditional promotions, which leads to fewer expenses.

On the next question, people were offered five choices, and they needed to pick the

factors they focus on to decide the reputation of a hotel image. The factors were:

- Trip Advisor reviews/rating

- Website Pictures
 57

- Media

- Social Media Posts

- YouTube Videos

Surprisingly, managers chose all the factors mentioned above; this means all these

factors are very important for promotion and reputation.

In the last part of the interview, an interesting question was presented. “What would be

the one thing (method, achievement) you would love to have right now for better

promotion/reputation and why? (For example: highest Trip Advisor rate, millions of

followers on Social Media Profiles)”The aim of this question was to understand the

goal of the hotel management and how they would like to reach out to have better image

and reputation.

The resulting answers were very interesting too: Mrs. Lazarova’s answer was about

YouTube. She wants to have a nice presentation video for YouTube to use as a

promotion tool . Meanwhile, Mrs. Gajova wants the highest Trip Advisor rate in order

to have better reputation and promotion; she also mentioned that to be in the top 100th

also leads to successful reputation.

Questioning the hotel managers in Prague and knowing about their ideas was a good

way to understand real life practices for Social Media Marketing. Comparing the

findings from the research and the interview answers of the managers is one of the best
 58

ways to conclude my thesis research. Overall, interviews support the findings I have

above and, at the same time, show that Managers know what the “needs” and “wants”

of the potential customers are. Comparing my survey results with the interview research

is clear proof of that.

Chapter XI. Conclusion

It is fact that, nowadays, everything we do – choosing a restaurant, listening to music,

watching movies, and even purchasing a T-shirt – is directly or indirectly related to

marketing. Sometimes, we decide to choose or purchase a product we do not even need.

That has much to do with marketing. Marketers create a demand in people’s mind for

particular products. It is the same as if we decide to go for a vacation or have a short

business trip. We may choose a hotel that it is more expensive than another hotel, even

if we have no need for this choice.

Social Media Marketing is one of the most powerful tools used to create that demand in

people’s minds. Especially nowadays, when two billion people use social media in their

daily life. This is particularly true of travelers who choose, book, and even pay for their

whole trip over the phone.

The hospitality industry is one of those industries that needs more focus on online sales

and a long-distance relationship with the guests/customers. However, having profiles

on social media and being part of an Online Travel Agency (OTA) website is not
 59

enough. These profiles need to be active and full of positive reviews, which means that,

as a first step, I the service the property provides should meet the expectations of the

customers/visitors.

Research, my personal survey with travelers, personal interviews with Prague

hospitality business managers and comparison of my findings with different surveys

helped me understand how the managers use social media in order to reach people, how

the potential customers use social media platforms, how important this is for the

(customers) decision making process, and, finally, which are the main factors that can

affect the decision making process of the customers/visitors.

Following my research findings and interview answers, survey responses support the

idea that hospitality businesses must not just focus on Social Media Marketing. In the

end, a very small fraction of sales comes from Social Media (direct or indirect sales).

For this type of industry, Social Media Marketing is not enough. However, in order to

have a better brand image, a better reputation and to be able to influence the choices of

travelers, social media it is still a very useful and practical medium. Is As I mentioned

above, businesses need to develop and improve their services and focus on guest

satisfaction, and need to take the necessary steps to make travelers happy. After that,

good results will come automatically.

The final research question discussed “How hospitality businesses in Prague have

changed their marketing strategies by using available social media marketing tools to
 60

their advantage in order to do the most effective promotions of services and make the

customers (travelers) engage in particular business?” When we compare the time life of

the hospitality businesses promotion methods, we can see that businesses spend/invest

less and less on printed media nowadays. Instead, management of hospitality businesses

are focusing more on online marketing tools. Research also points to the fact that new

online promotion tools are less costly for businesses and they make it easier to measure

all marketing. At the same time, the work of travel agencies has become less and less

effective, while Online Travel Agencies gain more power with every passing day.

Nowadays, people compare properties, see pictures, and specially read the feedback of

previous customers before they make a decision; however, in the past, people needed to

decide based on the offers of the travel agency employees or just price comparison.

In my opinion, the power of Social Media Marketing will grow with every passing year,

especially in the hospitality business. However, this promotion method should not reach

an extreme level. After all, people want to enjoy the time they spend on social media

and not see promotions all the time.

 61

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 63

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 64

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Social Network Sites On Tourism Destination Marketing." E-Journal Of Science &

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Developers. Boston, MA: Course Technology, 2010. Cengage Brain. 2010. Web. Jan.-

Feb. 2016.
 65

 David, Kurtz. "Contemporary Marketing, Update 2015." Google Books. N.p., 2015.

Web. 17 Feb. 2016.

 Anderson, Chris. "The Impact of Social Media on Lodging Performance."Cornell.edu.

N.p., 11 Jan. 2012. Web. 5 Feb. 2016.

 Siddharth Begwani, Aritra Pal, Cognizant Technology Solutions. The Social Media

Mandate for the Hotel Industry (2015): 3-9. Cognizant. Jan. 2015. Web. Jan. 2016.

 "The Anatomy of Content Marketing: The Heart of Online Success." Visually.

Visually.ly, 27 Feb. 2012. Web. 17 Apr. 2016.

 "Underscoring the Importance of Online Hotel Reputation Management -

Tnooz." Tnooz. N.p., 18 Aug. 2011. Web. 11 Feb. 2016.

 Jeff. "EdgeRank." EdgeRank. N.p., n.d. Web. 25 Mar. 2016.

 "Czech Statistical Office." CZSO. Czech Statistical Office, n.d. Web. 17 Mar. 2016.

 Europe, The Brewers Of. "An Assessment of the Economic Contribution of the

Hospitality Sector across 31 Countries." The Hospitality Sector in Europe (n.d.): n.

pag. Ey.com. Ernst & Young Commissioned by The Brewers of Europe with Support

from HOTREC, Sept. 2013. Web. Mar. 2016.

 "Czech Republic - About CzechTourism." Czech Republic - About CzechTourism.

Czech Tourism, n.d. Web. 17 Feb. 2016.

 "2013 Annual Report Prague City Tourism." (2013): 25-36. Prague.eu. Prague City

Tourism, 2013. Web. 9 Jan. 2016.

 "Traditional Marketing." Marketing Schools. Marketing-schools.org, 2012. Web. 01

Mar. 2016.

 "The Essential Guide to Online Marketing." (n.d.): 170-90. Saylor.org. Saylor. Web. 05

Mar. 2016.
 66

 Thompson, Gary. "Social Media Use in the Restaurant Industry: A Work in

Progress." Cornell.edu. Cornell, 05 Feb. 2013. Web. 30 Mar. 2016.

 "Social Media Options: Which Is Right for My Restaurant." National Restaurant

Association. Restaurant.org, n.d. Web. 17 Apr. 2016.

 7Ps:, Marketing And The. "Marketing Is the Management Process Responsible for

Identifying, Anticipating and Satisfying Customer Requirements Profitably." A Brief

Summary of Marketing and How It WorksMarketing and the 7Ps: A Brief Summary of

Marketing and How It Work (n.d.): 4-7. Cim.co. Moor Hall Cookham Maidenhead

Berkshire, 2015. Web. Feb. 2016.

 Mackenzie, Murray. "Introduction to Hospitality." Prairie Schooner 10.3 (1936): 235-

36. Edb.gov.hk. Tourism and Hospitality Studies, Apr. 2009. Web. 7 Feb. 2016.

 Michael, Dewing. "Social Media and Communication Power." Social Media: A Critical

Introduction (n.d.): 69-94., 20 Nov. 2012. Web. 9 Apr. 2016.

 Litvin, Stephen W., Ronald E. Goldsmith, and Bing Pan. "Electronic Word-of-mouth in

Hospitality and Tourism Management." Tourism Management29.3 (2008): 458-68.

Department of Hospitality and Tourism Management, College of Business and

Economics, 20 June 2005. Web. Apr. 2016.

 Kim, Woo Gon, and Hyunjung Lim. "The Effectiveness of Managing Social Media on

Hotel Performance." International Journal of Hospitality Management (2015): 165-

71. Elsevier. Web. 2 Apr. 2016.

 Tepeci, Mustafa. "International Journal of Contemporary Hospitality

Management." Increasing Brand Loyalty in the Hospitality Industry: : Vol 11, No 5.

Emeraldinsight, 2000. Web. 17 Apr. 2016.

 Chu, Raymond K.s., and Tat Choi. "An Importance-performance Analysis of Hotel

Selection Factors in the Hong Kong Hotel Industry: A Comparison of Business and
 67

Leisure Travellers." Tourism Management 21.4 (2000): 363-77. Tourism Managment,

03 Feb. 1999. Web. Apr. 2016.