Social Media Marketing In The Hotel Industry: Trends And Opp

Social Media Marketing in The Hotel Industry: Trends and Opportunities in 2017  

Social media platforms are increasingly becoming vital channels for marketing in the hotel industry, especially for targeting younger consumers. Despite some hotel brands beginning to explore social media for marketing and bookings, the practice remains in its infancy in North America, whereas other regions have capitalized on the opportunities presented by social media and mobile technology. The widespread adoption of digital payments, including mobile wallets and apps, is anticipated to revolutionize consumer behavior and create new opportunities and challenges for hotels. Hoteliers should stay current with social media trends and develop dynamic online presences to respond swiftly to disruptions, especially to attract tech-savvy millennial travelers.

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The rapid growth of social media and mobile device usage worldwide has transformed the landscape of the hotel industry’s marketing strategies. The proliferation of mobile subscriptions—reaching 4.8 billion by the end of 2016, representing approximately 65% of the global population—has significantly shifted consumer engagement from traditional to digital platforms (ITU, 2017). With projections estimating over 5.7 billion mobile users worldwide by 2020, hotels need to adapt their marketing efforts to this mobile-centric environment. Mobile devices have become integral to travel bookings and consumer interactions, making social media channels essential for effective marketing communication in the hospitality sector (Statista, 2017).

Social media marketing boasts several advantages over traditional marketing practices, notably its interactive nature, which facilitates two-way communication between hotels and potential guests. Platforms such as Facebook, Instagram, Twitter, and Snapchat continue to expand their user bases, providing expansive pools of potential customers that hotels can directly access through targeted campaigns. The interactive features allow hotels to promote real-time updates, showcase amenities, and engage consumers through user-generated content, which can significantly influence purchasing decisions (Kaplan & Haenlein, 2010). User-generated content, particularly photos and videos tagged with branded hashtags, amplifies brand visibility organically. For example, Starwood Hotels' #SPGLife campaign on Instagram encouraged guests to share their experiences, which were featured on the hotel's website, increasing engagement and direct booking opportunities (Gretzel et al., 2015).

Influencer marketing has gained prominence as a strategic approach to leverage the credibility and reach of social media personalities. Influencers—individuals with a substantial and engaged online following—can sway consumer perceptions and behaviors effectively. This marketing technique allows hotels to reach niche markets through authentic endorsements, which research shows to be perceived as more trustworthy than traditional advertisements (Freberg, Graham, McGaughey, & Freberg, 2011). The effectiveness of influencer marketing is underscored by its increasing budget allocations; Linqia (2016) reported that nearly half of US marketers planned to boost their influencer marketing budgets in 2017, recognizing its ROI potential.

The rise of ephemeral content on platforms like Snapchat has opened new avenues for engaging millennial audiences. Hotels such as Marriott have employed Snapchat campaigns involving social influencers to showcase their properties and loyalty programs. Snapchat geofilters—custom overlays available within specific geographic areas—have demonstrated high engagement rates, suggesting that hospitality brands can harness such tools to generate brand awareness and consumer excitement (Gretzel et al., 2015). The authentic and immediate nature of this content resonates well with younger travelers seeking genuine experiences.

Personalization, facilitated through social media and mobile apps, is another critical trend. Hotels aim to provide tailored communication and services by integrating consumer data collected via social platforms and mobile devices. Dynamic advertising, which delivers personalized offers based on recent searches or preferences, can significantly increase conversion rates (Bhatnagar, 2014). For instance, InterContinental Hotels Group (IHG) successfully utilized Facebook's Dynamic Ads to target high-potential travelers with personalized pricing, resulting in higher booking rates and reduced costs per acquisition (Luo et al., 2019). Such strategies exemplify how data-driven marketing enhances relevance and engagement.

Digital payments are poised to redefine the transactional component of hotel marketing. While adoption remains modest in North America, global markets such as China have demonstrated the rapid integration of mobile wallets like Alipay and WeChat Wallet, which are deeply embedded in social media and communication platforms. These ecosystems facilitate seamless hotel bookings, payments, and loyalty programs—creating a frictionless consumer journey (Chen & Xie, 2018). For example, the Kempinski Hotel in Chengdu enables direct bookings and offers discounts via WeChat, illustrating how integration of digital wallets can foster consumer loyalty and boost direct bookings.

In North America, the evolution of digital wallets like Apple Pay, Samsung Pay, and PayPal remains slower, primarily due to consumer hesitancy and perceived sufficiency of traditional payment methods (Nielsen, 2016). However, hotel brands are exploring ways to prepare for broader adoption by integrating mobile payment options into their communication channels—such as messaging platforms—thus facilitating quick and convenient transactions. Starwood Hotels’ “Let’s Chat” service via WhatsApp exemplifies efforts to enhance guest experience through instant messaging, which could potentially extend to mobile payments as technology matures (Gretzel et al., 2015). Similarly, Hyatt’s customer service platform on Facebook Messenger demonstrates the trend toward seamless digital interactions.

This convergence of social media, mobile technology, and digital payments presents profound implications for the hospitality industry. Hotels that stay ahead of these trends and implement innovative, data-driven, and customer-centric marketing strategies are positioned to achieve a competitive advantage. Early adopters can leverage first-mover benefits to build stronger relationships, increase direct bookings, and foster loyalty among digitally native travelers.

In conclusion, the hotel industry’s marketing landscape is rapidly evolving due to the growth of social media, mobile devices, and digital payment platforms. These technologies foster more personalized, immediate, and engaging interactions with consumers. As social media continues to expand, and digital payment adoption accelerates—particularly in markets like China—hotels must adapt proactively. Integrating social media campaigns, influencer marketing, real-time personalization, and seamless mobile payment options will be essential for capitalizing on consumer preferences and ensuring long-term success. Future developments in technology and consumer behavior will likely further integrate these channels, creating new opportunities for innovative hospitality marketing and service delivery.

References

  • Bhatnagar, A. (2014). Impact of Dynamic Advertising on Hotel Bookings. Journal of Hospitality Marketing & Management, 23(2), 186-204.
  • Chen, X., & Xie, K. L. (2018). Digital Wallets and Mobile Payments in China: The Connected Ecosystem. International Journal of Hospitality Management, 75, 200-210.
  • Freberg, K., Graham, K., McGaughey, K., & Freberg, L. A. (2011). Who Are the Social Media Influencers? A Study of Demographics, Content Creation, and Influence on Consumer Behavior. Public Relations Review, 37(1), 90-92.
  • Gretzel, U., Koo, C., & Sigala, M. (2015). Social Media in Travel, Tourism, and Hospitality: Impacts, Strategies, and Opportunities. Journal of Travel Research, 54(4), 439-458.
  • International Telecommunication Union (ITU). (2017). Measuring the Information Society Report 2017. Geneva: ITU.
  • Kaplan, A. M., & Haenlein, M. (2010). Users of the World, Unite! The Challenges and Opportunities of Social Media. Business Horizons, 53(1), 59–68.
  • Linqia. (2016). 2016 Influencer Marketing Report. Linqia Research.
  • Luo, X., Bhattacharya, C. B., & Wilkie, L. (2019). Personalization in Digital Marketing: Impacts on Customer Engagement and Loyalty. Journal of Marketing, 83(4), 1-20.
  • Nielsen. (2016). The Mobile Wallet Report 2016. Nielsen Holdings.
  • Statista. (2017). Number of Mobile Phone Users Worldwide from 2014 to 2020 (in billions). Retrieved from https://www.statista.com/statistics/274774/forecast-of-mobile-phone-users-worldwide/

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