Social M edia and Technology: The I nfluence on Hawaii`s Hotels

 Consortium Journal of Hospitality and Tourism
19:2, 2014, 54-73
ISSN: 1535-0568
Social M edia and Technology: The I nfluence
RQ+DZDLL¶V+RWHOV
CATHRINE LINNES
College of Business
Hawaii Pacific University
PAUL KOWALSKI
College of Business
Hawaii Pacific University
JOSEPH LEMA
Hospitality & Tourism Management
The Richard Stockton College of New Jersey
WENDY LAM
Hospitality & Tourism Management
Hawaii Pacific University
JEROME AGRUSA
Hospitality & Tourism Management
Hawaii Pacific University
This research focuses on the impact of social media on toda\¶V KRWHO
industry. Reference will be centered on TripAdvisor due to its dominant
market position within the travel industry market segment. Specifically,
this study will examine how: (1) social media technologically connects
and interfaces with customers for feedback, reviews, and surveys, in order
to reach more users and to increasingly gain popularity; (2) TripAdvisor
Address correspondence to Jerome Agrusa, PhD, Hospitality and Tourism Management at Hawaii
Pacific University, (808) 544-9341, [email protected]
55
Social Media and Technology
interfaces with Facebook and is present on other social media websites
like LinkedIn and Twitter; (3) every year, TripAdvisor awards destinations
DQG SURSHUWLHV ZLWK WKH 7UDYHOHUV¶ &KRLFHŠ DZards; (4) once awarded,
these destinations and properties will bear primary sequence in main
search engines and will therefore gain popularity; (5) with these
advantages, the hotel industry is to be educated and made aware of the
dynamics of social media and the importance of monitoring; (6) one of the
main reasons why social media like TripAdvisor increases in popularity is
WKH JURZLQJ UHOLDQFH RI FRQVXPHUV¶ RQ ILUVW KDQG EORJV DQG UHYLHZV IRU
both current and post stays; (7) as a result, there is a growing importance
paid by Hoteliers towards social media, which requires changes of
behavior and skills of leaders to adapt to social media; (8) and finally,
7ULS$GYLVRU¶VLPSDFWRQKRWHOSURSHUWLHVLQ+DZDLL
KEYWORDS: Social media, technology, Hawaii hotels, TripAdvisor
INTRODUCTION
In this modern age of travel and tourism where ultra-competition exists in all
areas, consumers have also become increasingly conscious of their purchase decisions.
&RQVXPHUV GHSHQGHQFH RQ ILUVW KDQG IHHGEDFN RWKHUV¶ SHUVRQDO experiences, as well as
recommendations from trusted parties has increased as options have multiplied across
various segment i.e. product/services, geographic location, price structure, amenities/
facilities, packages, etc.
Over the last decade, human behavior has seen an increasing familiarity and
GHSHQGHQFH RQ WHFKQRORJ\ QDPHO\ ³7KH ,QWHUQHW´ $V WKH QXPEHU RI LQWHUQHW XVHUV
around the world increases, so do the users of travel review websites. Web based
programs have thus evolved through the Internet to increase sales and at the same time
provide resources that allows consumers to purchase or acquire support to make the
purchase decision (Shankar, Smith, & Rangaswamy, 2003). Live feed systems that have
emerged through the Internet allow consumers to communicate and relay their feedback.
With the advancement of technology and the increasing importance for communication,
social media was established via the Internet that served multiple purposes for both
consumers as well as sellers.
Linnes et al.
56
Market capture and maximization have become a common goal for service
providers. There are numerous websites known for offering advice from real travelers as
well as a variety of travel options and planning features. These travel websites compile
the opinions and experiences of many previous customers in one convenient place,
making it easily accessible to virtually anyone. Because word-of ±mouth advertising is so
powerful, these websites can have a great influence in attracting customers (De Bruyn &
Lilien, 2008). Owens (2012) argues that user-generated reviews are critical in the
decision making process and may reassure a customer on their decision to commit to the
reservation Travel review websites have essentially revolutionized word-of±mouth
advertising. With multiple websites that allows for hospitality organizations to be
marketed as well as rated, for instance, Yelp, Four Square, Facebook, Urbanspoon, and
Twitter; this study will focus on TripAdvisor and its significant contribution and impact
on the hotel industry in Hawaii. It has been over 15 years since the social era started and
7ULS$GYLVRU KDV VXFFHHGHG WR EH WKH ZRUOG¶V ODUJHVW WUDYHO VLWH 7ULS$GYLVRU D
TripAdvisor assists potential guests in making their decision where to stay or where to
dine along with other sources of information on a destination.
Founded in 2000 by Stephen Kaufer, TripAdvisor is one of the first usergenerated websites. Information about hotels, flights, vacation rentals, and restaurants as
well as the yearly 7UDYHOHUV¶&KRLFH winners can be found on the website. Twelve years
later, TripAdvisor has over 260 million monthly visitors and over 125 million reviews
which covers over 3.1 million accommodations, restaurants, and tourist attractions
(TripAdvisor, 2013a).
The website is available to the public without any charge. The travel website is
ILQDQFHG WKURXJK DGYHUWLVHPHQWV 7ULS$GYLVRU¶V VHUYLFHV DUH YHU\ YHUVDWLOH DQG UDQJH
from publishing reviews about travel destinations to comparing prices of hotels and
flights, while showing the lowest price available on the Web.
TripAdvisor is used by customers for different purposes. One of the most
common purposes is to research the destination prior to travelling or visiting a restaurant
and making a decision based upon the reviews. The travel website also posts forum
discussions, which can be helpful to customers in making a decision if the selected
destination, hotel or restaurant will meet their needs and expectations. Access to the
ZHEVLWH¶VLQIRUPDWLRQGRHVQRWUHTXLUHEHLQJDUHJLVWHUHGXser as well as posting a review,
but it is highly recommended as it allows personalizing the website.
The use of Trip Advisor is slowly becoming an integral part of trip planning.
According to Ong (2012), 61% of those surveyed stated they use reviews to narrow down
their choices. In addition, nearly all the respondents of a Travel Weekly survey indicated
WKDW UHYLHZV KDYH DW OHDVW ³VRPH LQIOXHQFH´ DQG DSSUR[LPDWHO\ RQH LQ ILYH UHVSRQGHQWV
57
Social Media and Technology
VDLG WKDW UHYLHZV KDYH ³9HU\ 0XFK ,QIOXHQFH´ RQ WKHLU WUDYHO FKRLFHV. The survey also
stated that 98% of the respondents who used travel review websites said they would use
them again (Chipkin, 2012). Due to these factors, review websites such as TripAdvisor
VKRXOGEHDWRSSULRULW\IRU+DZDLL¶VKRWHOPDQDJHUV
TripAdvisor is used worldwide and operates in 34 countries including websites in
North America, South America, Australia, Europe and Asia (TripAdvisor, 2013). In
China, the company operates under the brand daodao.com and kuxun.cn (TripAdvisor,
2014a.). Currently about more than 20,000 hotels and restaurant can be found on the
travel website daodao.com even though it was just launched recently in 2009. Daodao is
becoming one of the biggest travel websites and is constantly expanding in China as well
as worldwide. The company manages and operates websites under 19 other travel media
brands and together the sites attract more than 69 million monthly visitors (ComScore,
2012).
(1) Social Media Technological Connects and Interfaces Customers for
Feedback, Reviews and Surveys
Before social media gained the importance and reputation which it currently has
LQ WRGD\¶V VRFLHW\ FXVWRPHUV ZHUH UHVWULFWHG WR H[FKDQJH LQIRUPDWLRQ ZLWK WKHLU WUDYHO
agents, friends or families. Recommendations or information about the destination were
UHVWULFWHG DQG EDVHG RQ WKH LQGLYLGXDO¶V SHUFHSWLRQ 5DUHO\ ZHUH FXVWRPHUV DEOH WR
compare multiple reviews about a destination. Although times have changed, the
importance of word of mouth (WOM) recommendations are still one of the most
dominant factors prior to making a travel decision (Looker, Rockland, & TaylorKetchum, 2007; Smith, 1993). Through the use of the Internet and the increase of
communication, WOM has gained even more importance. Websites such as TripAdvisor
connects customers with each other and makes information and reviews about hotels,
vacation rentals and restaurants accessible to the broad public. TripAdvisor also allows
customers to compare different reviews of past customers with each other and includes a
ranking of similar properties. Therefore, the customer can compare similar restaurants
and hotels at the desired destination with each other. In addition, Trip Advisor hosts
forums about different travel related topics. The opportunities to network or to gather
information are endless.
Linnes et al.
58
(2) TripAdvisor Interfaces with Facebook and Other Social Media
Trip Advisor recognized the need to market their website on a variety of social
media websites. Internet marketing allowed the company to advertise their services and
product free of charge.
TripAdvisor is represented on the following social media websites:
a. 2Q /LQNHG,Q WKH ZRUOG¶V ODUJHVW ,QWHUQHW EDVHG SURIHVVLRQDO QHWZRUN
website with more than 277 million registered members in over 200
countries (LinkedIn, 2014). TripAdvisor has currently 43,726
followers from LinkedIn as of February, 2014
b. On Facebook, which is a social networking service with more than
1.23 billion active users as of December 31, 2013 (Facebook, 2014a),
Facebook users have currently 740,804 likes on TripAdvisor and
21,054 are talking about it (Facebook, 2014b). Facebook allows
creating and joining interest groups and becoming a fan of a page.
Organizations like TripAdvisor use this as a form of free Internet
advertisement. In 2007, TripAdvisor paid Facebook.com $3 million
GROODUVIRUWKH³:KHUH,YH%HHQ´DSSOLFDWLRQDOORZLQJWKHPWRFDSWXUH
a brand new market (Biggs, 2007; Kafka, 2007; McCarthy, 2007).
First introduced in the U.S, the UK followed a few months later. This
partnership allows users an instant personalization of both websites. It
is advertised on TripAdvisor to sign in via a Facebook account. In
DGGLWLRQ WR LW D GLUHFW OLQN RQ WKH FRPSDQ\¶V ZHEVLWH FDQ EH IRXQG
where users can sign into TripAdvisor through their Facebook account
and therefore connect both of their profiles. Critics mention that the
application is an opt-out initiative for its Facebook users. This means
that if a Facebook user has not actively disabled the feature in the
settings, by visiting TripAdvisor while being logged into the Facebook
account both webpages are connected and instantly personalized. Once
both accounts are connected, customers are always able to log into
their TripAdvisor account via Facebook without requiring another
password. This application acts like a personalized travel planner and
DOORZV XVHUV WR FRQQHFW ZLWK WKHLU )DFHERRN IULHQGV¶ UHYLHZV DQG
opinions about their latest trips and dining experiences in various
ways. The application will post on behalf of the user status updates
and photos on the news feed and therefore share the users travel advice
59
Social Media and Technology
on Facebook. In addition, when researching a destination of interest on
TripAdvisor, the user will see which of their Facebook friends have
been to that location and what their feedback was. Since this
partnership has been launched, 100 million people have been part of
this instant personalization (May, 2014). The cooperation with
Facebook allows better coverage within the social media network
itself. The recent numbers indicate that the average user has over 190
friends iQ WKHLU VRFLDO QHWZRUN %DFNVWURP $ 7ULS$GYLVRU¶V
review and opinion is not only shared on the website itself, but is also
shared on Facebook, which in return is able to reach more users.
TripAdvisor is one of eight partners worldwide that have access to this
form of instant personalization. TripAdvisor is currently the only
travel site. Adam Medros, the Vice President of Global Products at
7ULS$GYLVRUVWDWHG³:HWKLQNWKDW¶VDUHDOO\SRZHUIXOLGHDWKDWSHRSOH
inherently do want to share their experiences and their content with
WKHLU IULHQGV ,I WKH\ JLYH XV WKHLU SHUPLVVLRQ ZH¶OO LQFUHDVLQJO\ DVN
for that permission, to be able to make it easier for your friends to
discover the things that you like. And to get ideas and
recommendations for the triSV WKDW WKH\¶UH SODQQLQJ´ 6DZHUV p. 1).
c. On Twitter, which is a real-time information network that connects
private users as well as businesses with its customers, TripAdvisor has
currently 1.2 million followers and a total of 9,756 tweets published by
the administrators (TripAdvisor, 2014b). Twitter allows the quick
sharing of information and news with the group of followers and
DQ\RQHZKRLVLQWHUHVWHGLQWKHFRPSDQ\¶VSURGXFWVDQGVHUYLFHV7KLV
provides an opportunity to build relationships and to engage with
customers outside of the familiar website. Beyond the website which
TripAdvisor has on Twitter, the company is currently not looking into
D GHHSHU LQWHJUDWLRQ DFFRUGLQJ WR $GDP 0HGURV ³:H¶YH FHUWDLQO\
looked at that and all the other social QHWZRUNV:H¶GFRQVLGHUGRLQJ
it, but the main thing we want to figure out is what are we getting from
LW":H¶YHGRQHDOLWWOHWHVWLQJDQGXVHUVDUHOLWWOHPRUHUHWLFHQWDERXW
pressing a button and sharing it out to their Twitter network and
followers´6DZHUVS
d. Google+, which has been just recently launched on September 20 th
2011, is a social networking and identity service operated by Google
Linnes et al.
60
Inc. The New York Times have declared that Google + as the answer
to the social network Facebook DQG DV *RRJOH¶V ELJJHVW DWWHPSW WR
ULYDO )DFHERRN 0LOOHU $UPDQR PHQWLRQHG LQ KLV DUWLFOH ³6L[
6RFLDO0HGLD7UHQGVIRU´WKDW*RRJOHVWUXFNEDFNLQZLWK
LWVIRUPLGDEOHLQLWLDWLYHWKDWDFWVDV*RRJOH¶V³VRFLDOOD\HU´WRWKHZHE
(Armano, 2011). As of October 29, 2013, Google+ has a user base of
more than 540 million surpassing Twitter´s 218 million monthly active
users (Daily News, 2013). Adam Medros mentioned that Google+
³:KHQ LW¶V ELJ HQRXJK DQG PDNHV D GHQW WKHQ \HDK EXW ULJKW QRZ
Facebook is really the only platform that has meaningful scale and
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Four Pillars Hotels in the UK stressed the impact of social media within the
hospitality industry. It reported that the search volume on Google for hotels has lost a
stunning 70% in the last six years. Instead travelers are using TripAdvisor, Kayak, and
Expedia (May, 2014).
In addition to social media, TripAdvisor offers a free mobile application for
iPhone or iPad users. These free applications are advertised as the ideal tool to plan a trip
as it will find the best places to eat, sleep, play wherever worldwide a user travels.
Applications allow users to be instantly connected with their favorite websites and to
follow news and trends as soon as they are published. For TripAdvisor, this means being
connected in a more efficient way with its users, therefore an improvement in
communication.
(3) 7UDYHOHUV¶&KRLFHŠ$ZDUGV&UHDWHGE\7ULS$GYLVRU
7UDYHOHUV¶ &KRLFHŠ DZDUG ZLQQHUV DUH directly awarded and advertised through
TripAdvisor. Awarded by millions of travelers, the winners are published annually
including a wide range of categories. The impact of TripAdvisor is tremendous, as it
markets the destination itself, including beaches and cities, as well as selected hotels to
the public. Therefore a city or area itself can suddenly increase in popularity due to the
UHDFK RI ,QWHUQHW PDUNHWLQJ )RU +RQROXOX KDV PDGH WKH OLVW IRU ³7RS %HDFK
'HVWLQDWLRQVLQWKH86´DQGDOVR³7RS%HDFK'HVWLQDWLRQVLQWKH:RUOG´+RQROXOX
ZDVUDQNHGDVQXPEHURIWKH³7RS'HVWLQDWLRQVLQWKH:RUOG´
,Q DGGLWLRQ WR GHVWLQDWLRQV 7UDYHOHUV¶ &KRLFHŠ DZDUGV DUH DOVR JLYHQ RXW WR
Hotels in all categories worldwide ranging from bargain to luxury. Within Hawaii the
ZLQQHUV IRU WKH ³7RS /X[XU\ +RWHOV LQ WKH 86´ DUH ZLWK QXPEHU VL[ WKH 6W 5HJLV
61
Social Media and Technology
3ULQFHYLOOH 5HVRUWLQ .DXDLDQGZLWK QXPEHUWKH ³.DKDOD+RWHO 5HVRUW´RQ2DKX
7KHFDWHJRU\³7RS5HOD[DWLRQ6SD+RWHOVLQWKH86´OLVWVWKH³7UDYDDVD+RWHO+DQD´
on the Big Island as number 25. Being awarded benefits the property in numerous ways.
The company can publish the title on their website, promote it within their property or
use it as an email signature for their internal and external communication. These are just a
few examples, how the company can take advantage of this free form of advertisement.
(4) TripAdvisor Itself Uses Review Ratings to Award Establish that Enable
Search Engine Optimization
2QFH DZDUGHG WKH 7UDYHOHUV¶ &KRLFHŠ DZDUG for example, the organization will
bear primary sequence in main search engines, including TripAdvisor itself. When a
customer searches for a desired travel destination, the properties which have been
DZDUGHG WKH 7UDYHOHUV¶ &KRLFHŠ DZDUG ZLOO EH OLVWHG ILUst. This is just another form of
IUHHDGYHUWLVHPHQW3XWWLQJWKLVLQWRSUDFWLFHZKHQVHDUFKLQJIRUWKH7UDYHOHU¶V&KRLFHŠ
ZLQQHU³7KH.DKDOD5HVRUW´RQWKHVHDUFKHQJLQH*RRJOHWKHILUVWZHEVLWHZKLFKLVOLVWHG
LVWKHSURSHUW\¶VKRPHSDJHWKHVHFRQGSDJH is the TripAdvisor website and the third one
LV<HOS¶VZHEVLWH2QFHFOLFNHGRQWKH7ULS$GYLVRUOLQNWKH7UDYHOHUV¶&KRLFH$ZDUGŠ
will show up immediately. To show another example, the number one winner for the
7UDYHOHUV¶&KRLFHŠ$ZDUGIRU/X[XU\LV WKH³*UDQG'HO0DU+RWHO´LQ6DQ'LHJR
It is currently the number one hotel out of 246 hotels within the city of San Diego. Just
searching for San Diego itself on the search engine Google will guide the user to
7ULS$GYLVRU¶VQXPEHURQHFKRLFHWKH³*UDQG'HO0DU+RWHO´,QDGGLWLRQWKHKRWHOLWVHOI
is marketing their title on the main page of their website. Even the link to the website is
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The same benefits apply for destinations as well. Cape Town Central is
7ULS$GYLVRU¶V QXPEHU RQH GHVWLQDWLRQ ZLWKLQ WKH ³7RS 'HVWLQDWLRQV LQ WKH :RUOG
´ UDQNLQJ :KHQ VHDUFKLQJ IRU &DSH 7RZQ RQ WKH VHDUFK HQJLQH *RRJOH WKH XVHU
will be guided to TripAdvisor where the award is mentioned immediately.
Search engine optimizations like these are of high value for hotels and
destinations. It is not only improving the visibility of certain websites, but also has the
effect that more visitors will go on the websites, which are higher ranked on the search
results page. This has an enormous impact on Internet marketing. Users immediately see
which hotel has the highest ranking or which destination is preferred and recommended
E\WKHPDMRULW\RIWKHSRSXODWLRQ:KDWXVHGWREHIULHQGVDQGIDPLO\¶VUHFRPPHQGDWLRQ
has now tremendously expanded to what the majority of travelers on the Web says.
Linnes et al.
62
(5) The Dynamics of Social Media and the Importance of Monitoring
With the increase of communication, the importance to control and monitor the
contents of the posts becomes a priority. TripAdvisor as a user-dynamic website carries
the risk of abuse via improper or inappropriate use by its customers. Brands are spending
a great amount of time and money investing in platforms, but with the increasing amount
of social platforms marketing is becoming more challenging. One of the biggest
challenges that companies are facing nowadays is to accept that customers are given an
increase in power through social media. With all the social platforms, customers are
given the opportunity to be more vocal (Merchant, 2012). The relationship between
companies and customers are becoming increasingly more emotional than rational.
To assure that the reviews are written by former guests and not by hotel or
restaurant staff, TripAdvisor established a verLILFDWLRQ SURFHVV *XHVW¶V UHYLHZV DUH QRW
posted to the website immediately. The company established a verification process,
which includes the monitoring of the authors IP address and email address. Given that
there are any suspicious patterns or the usage of inappropriate language, users can report
it to the company, which is then reviewed by a team of specialists. In addition, the
ZHEVLWHLVFRQVWDQWO\PRQLWRUHGE\WKHFRPSDQ\¶VDGPLQLVWUDWRUV
Besides inappropriate handling, there is a thin line of guests taking advantage of
EHLQJ ³D FOLFN DZD\ IURP EHLQJ D FULWLF´ 6PLWK S :KLOH VRPH XVHUV YLHZ
TripAdvisor as a great tool to communicate their honest experience to their friends or to
potential guests, others take advantage of this privilege. Examples range from upset
guests threatening the property to post a negative comment on the website if they do not
receive an appropriate compensation, to guests who post daily on social media how
frustrated they are with their experience while they are VWLOORQSURSHUW\7RGD\¶VVRFLDO
PHGLDQHWZRUN³SURYLGHVFRQVXPHUVZLWKPRUHRXWOHWVWRVRXQGRII´)HDULQJDQHJDWLYH
online comment or a bad online reputation forces some companies to give in and please
the customer whether he or she is right or wrong. ³6RFLDOPHGLDDQG:HESODWIRUPVKDYH
really changed the playing field in relation to the relationship between the business and
WKHFRQVXPHU«XVHUVKDYHXQIHWWHUHGSRZHU´6PLWKS
One guesthouse owner claims that he is spending more time dealing with unfair
reports than actually running his successful seaside hotel, while another owner claims
WKDWVKHKDVEHHQ³EUDQGHGDUDFLVWDIWHUWXUQLQJDSRWHQWLDOJXHVWDZD\´$FFRUGLQJWRWKH
DUWLFOH ³7ULSDGYLVRU FRXOG IDFH OHJDO DFWLRQ RYHU UHYLHZV´ RYHr 700 members of the
hospitality industry have either committed or are considering legal action against
TripAdvisor due to unfair reports (Morris, 2010, p. 1).
63
Social Media and Technology
(6) There Is a Growing Reliance of Consumers on First Hand Blogs and
Reviews: Both Current and Post Stay
Hoteliers know the importance of blogs and reviews. Based on reviews and posts,
a property can either gain popularity or it can lose its reputation. The dynamics can go
both ways. As TripAdvisor publishes rankings, some consumers make their travel
decision based on what is ranked the highest and do not read their reviews. According to
Sawers (2011), it is often not a good idea to base the opinion on the ratings alone
³6RPHWLPHVJLYHRQHVWDUZKHQWKHLURQO\JULSHLVWKHLUVRXSZDVQ¶WKRWHQRXJK´S 1).
In addition, some reviews are just stating personal preferences and are not applicable to
RWKHUWUDYHOHU¶VWDVWH
It is not uncommon, that hotels are nowadays facing the disadvantages of social
media such as TripAdvisor. Some properties claim that they were forced to close their
business because of the effects that TripAdvisor had on their online reputation. One
H[DPSOH VWDWHV WKH ³5LYHUVLGH +RWHO DQG 5HVWDXUDQW´ LQ :RUFHVWHUVKLUH (QJODQG KDV
been red-flagged by the website. The owner states that they had to face a loss of business
GXH WR 7ULS$GYLVRU¶V UHG IODJJLQJ RI WKH SURSHUW\ :KHQ D UHYLHZ LV UHG-flagged, a
ZDUQLQJ PHVVDJH DSSHDUV RQ LWV SDJH VWDWLQJ WKDW ³7ULS$GYLVRU KDV UHDVRQDEOH FDXVH WR
believe that individuals or entities associated with or having an interest in this property
PD\KDYHLQWHUIHUHGZLWKWUDYHOHUUHYLHZVDQGRUWKHSRSXODULW\LQGH[IRUWKLVSURSHUW\´
6DZHUVS2QHRI7ULSDGYLVRU¶VSURFHGXUHVLVWRFKHFNWKHXVHUVHPDLODGGUHVV
as well as the IP address. When the IP DGGUHVVLVVLPLODUWRWKHKRWHO¶V,3DGGUHVVHVLWLV
one of the indicators, that a false review has been posted. Therefore the travel website
DGYLVHV LWV XVHUV WR DYRLG SRVWLQJ UHYLHZV GLUHFWO\ IURP WKH KRWHO¶V OREE\ RU EXVLQHVV
center.
Some properties on the other hand are advertising to users to post fake reviews in
return for a small amount of payment. Reviewers are advised to change their email as
well as IP address, so that these fake reviews can go undetected by TripAdvisor
(Travelweekly, 2011). This trend to post fake reviews are hurting the reputation of
TripAdvisor and questioning the trustworthiness of some reviews. Also, this behavior is
concerning the travel industry as their competitors might be taking advantage of these
practices. The question now is, to which extent can users trust reviews on TripAdvisor? It
is a challenge, but to lower the risks, the first thing that consumers should be doing in
such circumstances are to take a look at other reviews posted about that property. The
company Kwikcheck is one of many Online Reputation Management companies helping
businesses worldwide to protect their reputation. In a recent blog posting, the company
discusses the difficulties TripAdvisor is now facing. As an example, the company states
Linnes et al.
64
WKH³%XFFDPHQW%D\5HVRUW´LQ6W9LQFHQWZKHUHDUHYLHZHUSXEOLFDOO\FODLPHGWKDWWKH
review she had written was a fake review. In addition, she states that it was one of many
UHYLHZV ZKLFK ZHUH ZULWWHQ E\ KRWHO DVVRFLDWHV ³7KH GLIILFXOWLHV IRU 7ULS$GYLVRU DUH
clear ± a case like this gives TripAdvisor and their claims to reliability and fraud
GHWHFWLRQDUHDOFUHGLELOLW\SUREOHPDQGLW¶VRQHWKDWZLOOFRQWLQXHWRJURZDVPRUHFDVHV
OLNHWKLVDUHLQHYLWDEO\UHYHDOHG´.ZLNFKH[S
(7) Growing Importance Paid By Hoteliers Towards Social Media: Social
Media Requires Changes Of Behavior and Skills Of Leaders to Adapt To
Social Media
According to the Bradley and McDonald article in the Harvard Business Review
³8VLQJ VRFLDO PHGLD WR DFFRPSOLVK D PHDQLQJIXO SXUpose involves more than providing
QHZ WHFKQRORJ\ DQG SUD\LQJ IRU VXFFHVV« :KLOH PDQ\ RUJDQL]DWLRQV DUH WHFKQLFDOO\
ready for social media, they should question the readiness of managers to embrace new
ways of working collaboratively to achieve social succeVV´%UDGOH\0F'RQDOG
p. 1).
Some properties have put this behavior into practice and established guidelines on
how managers can embrace new ways of working with social media. In some properties
WKH 0DQDJHU RQ GXW\¶V UHVSRQVLELOLW\ LV WR FRQWURO social media through their smart
phones provided by the company. The manager on duty responsible for either guest
relations or food and beverage has to monitor posted reviews and contact the guest in a
timely manner, while some properties have a public relations manager who is overseeing
social media. In addition, meetings and committees to control and monitor social media
are widely used.
For the purpose of this research, interviews were conducted with the General
Manager Douglas Okada, who is managing the Aston Waikiki Sunset. Ever since his
property became accessible to the public on TripAdvisor, he monitors all comments by
himself. Whether it is a positive or a negative comment, Mr. Okada responds to the
JXHVWV ³:KLOH PRQLWRULQJ VRFLDO PHGLD DQG UHVSRQGLQJ WR JXHVW¶V FRPPHQWV , DP QRW
solely writing a response to the guest who left the review but also to all the potential
guests who are reading through the comments prior to making a decision. Seeing that the
SURSHUW\FDUHVDERXWJXHVWV¶ IHHGEDFN LV FUXFLDODQG LVSDUWRI PDUNHWLQJWKHFRPSDQ\´
(D. Okada, personal communication February 19, 2014).
Currently, there are 884 reviews written about the property and within the
³+RQROXOX 6SHFLDOW\ /RGJLQJ´ VHFWRU LW LV UDQNHG DV WKH QXPEHU FKRLFH RXW RI properties. One of the reasons for the high ranking is that potential guests see that the
65
Social Media and Technology
General Manager himself truly cares about guest relations. The answers to each comment
are very detailed and personalized. None of the comments seems like it is an automated
UHVSRQVH'RXJODV2NDGD³,PDNHLWDSUDFWLFHWRUHVSRQGWRDOOSRVWLQJVERWKJRRGDQG
especially the not so good ones. There are always two sides to every story. It is amazing
how many people read this website before deciding on their hotel accommodations and I
have received numerous emails and phone calls from potential guests, because I respond
to each posting. These inquiries give me an opportunity to increase revenue and thus far,
I have been very successful with that practice. I will continue to respond to every posting
RQ7ULS$GYLVRU´'2NDGDSHUVRQDOFRPPXQLFDWLRQ)HEUXDU\
Social media has an incredible impact on the hospitality industry, both positive as
well as negative. The tremendous number of hoteliers need to realize is that even with its
negative impact, it provides the industry with an opportunity to turn a negative
experience into a positive with the right approach.
(8) The Impact of TripAdvisor On Properties In Hawaii
The top 10 hotels in Waikiki, listed on TripAdvisor is shown belong along with
the managers response ratings to its customer as of February 16, 2014. The percentage of
consumers consulting reviews at TripAdvisor and competing online sites prior to booking
a hotel room has steadily increased over the years, as has the number of reviews being
reviewed prior to making their hotel choice. TripAdvisor reported that two-thirds of U.S.
travelers reported using social media while on vacation (TripAdvisor, 2013)
Table 1
Top 10 Hotels in Waikiki Listed on Trip Advisor
1 Trump
2 Halekulani
Responded to traveler ratings:
125/862 excellent reviews
37/217 very good reviews
7/63 average reviews
1/14 poor reviews
5/13 terrible reviews
Total 1,169
Responded to traveler ratings:
0/981 excellent reviews
0/246 very good
0/93 average reviews
0/33 poor reviews
0/22 terrible reviews
Total 1,375
Linnes et al.
3 Lotus Honolulu at
Diamond Head
4 The Modern
Honolulu
5 Park Shore
Waikiki
6 The Kahala Hotel
& Resort
Responded to traveler ratings:
214/291 excellent reviews
54/107 Very good reviews
11/23 average reviews
2/6 poor reviews
4/4 terrible reviews
Total 431
Responded to traveler ratings:
56/707 Excellent reviews
14/241 very good reviews
13/80 average reviews
7/33 poor reviews
14/23 terrible reviews
Total 1,084
Responded to traveler ratings:
94/108 excellent reviews
46/55 very good reviews
13/14 average reviews
1/1 poor reviews
0/0 terrible reviews
Total 178
Responded to traveler ratings:
435/819 excellent
125/231 very good
64/93 average reviews
27/47 poor reviews
22/41 terrible reviews
Total 1,231
7 Outrigger Reef on
the Beach
Responded to traveler ratings:
85/1859 excellent reviews
54/977 very good reviews
17/231 average reviews
8/84 poor reviews
5/51 terrible reviews
Total 3,202
8 Embassy Suite
Waikiki Beach
Walk
Responded to traveler ratings:
414/910 excellent reviews
203/483 very good reviews
44/109 average reviews
19/40 poor reviews
6/18 terrible reviews
Total 1,560
66
67
Social Media and Technology
9 Aston Waikiki
Beach Tower
10 Shoreline Hotel
Waikiki, a Joie de
Vivre Hotel
Responded to traveler ratings:
152/441 excellent reviews
58/186 very good reviews
14/29 average reviews
6/12 poor reviews
5/7 terrible reviews
Total 675
Hotel responded to traveler ratings:
81/134 excellent reviews
46/78 very good reviews
10/14 average reviews
0/3 poor reviews
0/1 terrible reviews
Total 230
'LVQH\¶V$XODQL5HVRUWDQG6SDORFDWHGRQ2DKX+DZDLLZKLFKRSHQHGLQ
already has 1413 reviews on TripAdvisor as of February 16, 2014 and is ranked as
number two of three hotels in Kapolei. In comparLVRQ0DUULRWW¶V.R2OLQD%HDFK&OXE
which is ranked as number one hotel in Kapolei has 1483 reviews, but has been on
TripAdvisor for 11 years. Given the fact that Aulani continues to receive the same
amount of reviews as it had since it has opened, the property will have more reviews than
the Ko Olina property in the near future. This demonstrates how a new property increases
in trend and guests are more likely to post comments on social media.
The Trump International Hotel in Waikiki is ranked as the number one hotel in
Honolulu on TripAdvisor every month for the past 37 months. As of February 2014,
Trump Hotel, was rated the number one hotel in Honolulu on TripAdvisor with a total of
1169 reviews for the 37th FRQVHFXWLYH PRQWK ³%HLQJ QHZ GRHV QRW KXUW´ says the
Director of Sales and Marketing Mr. Votsis, who has been with the company since its
opening. In 1984 the Halekulani was the last hotel being built in Waikiki before the
Trump Hotel has been built (Votsis, personal communication February 21, 2014).
5HIHUULQJ WR 0U 9RWVLV WKH SURSHUWLHV¶ GLUHFW FRPSHWLWRUV DUH +DOHNXODQL DQG
Kahala. The Halekulani property is located across the street and is currently ranked as
number two with 1375 reviews. The Kahala Hotel, which is located six miles away from
both properties, is currently ranked as number nine hotel with 1231 reviews. Despite the
lower ranking, the Kahala Hotel has one competitive advantage through TripAdvisor.
7KHSURSHUW\ZRQWKH7UDYHOHUV¶FKRLFHDZDUGIRURQHRIWKHEHVW OX[XU\ KRWHOV LQ
the United States. The property is ranked as number 25 within the United States and is
the only property listed on Oahu (Votsis, personal communication February 21, 2014).
Linnes et al.
68
According to Mr. Votsis, advertising in newspapers becomes less important:
³3HRSOH Go not believe in it. You can tie it to promotions that sometimes work. Social
PHGLD LV WKH IRFXV´ 7KHUHIRUH WKH VDOHV WHDP GRHV QRW EX\ DGYHUWLVHPHQW LI LW GRHV QRW
have any electronic link. Nowadays the majority of reservations are being booked
through the Internet. In the case of the Trump Hotel most business is being booked
WKURXJK DQ L3DG 2QFH WKH L3DG ZDV DYDLODEOH RQWKH PDUNHWWKH FRPSDQ\¶V PDLQ IRFXV
was to make the website iPad friendly (Votsis, personal communication February 21,
2014).
As every KRWHO QHHGV WR PRQLWRU LWV VRFLDO PHGLD WKH 7UXPS¶V +RWHO FRUSRUDWH
team is overseeing all social media. Guests are contacted directly when a comment is left
on the TripAdvisor website. This provides the company with an opportunity to follow up
with either the positive or negative feedback.
,Q WKH VXPPHU RI 6WDUZRRG FUHDWHG D ³3XEOLF 5HODWLRQV 0DQDJHPHQW´
position for their hotels on the Island of Kauai in Hawaii due to the increase in social
media usage by its guests on the island of Kauai. The responsibilities range from
overseeing and marketing the social media for the Westin Princeville Resort as well as
the Sheraton Kauai Resort in Poipu. Companies are now investing in their online
reputation. The playing field has changed and what companies previously use to invest in
traditional forms of advertising is now being invested in monitoring online platforms.
According to the public relations agency Weber Shandwick, 88% of consumers said that
word of mouth opinions online are the main driver what they think of a company. While
80% indicated online reviews and search results determine what they think about a
company, 49% reported that social networks are the leading factor (Smith, 2012).
CONCLUSI ON
Prior to the social media era one had professional reviewers who operated under
clear guidelines. Now, nearly anyone can post which raises the issue of a business that
gets wrongfully rated which potentially can lead to a business shutting down or suffering
an enormous economic loss. To survive, many organizations require an on hand
dedicated social media experts to manage its image online. TripAdvisor allows
companies to respond but many feel powerless in the era of free-for-all nitpicking
(Stellin, 2010).
6RFLDO QHWZRUNV¶ FRQVXPHUV FUHDWH RYHU ELOOLon impressions on one another
every year. These are done by reviews, posts, blogs and live messaging. Every
organization should and is able to analyze these impressions and identify the
demographics of guests, what their common concerns are, and in turn make these work.
69
Social Media and Technology
(Bernoff & Schadler, 2010). Nowadays, it is crucial for any company and their leaders in
the travel industry to focus on social networks and to be informed about recent postings
DVZHOODVWKHFRPSDQ\¶VRQOLQHUHSXWDWLRQ
According to a joint study from Booz Allen and social platform developer Buddy
Media, 57% of businesses surveyed plan to increase social media spending and 38% of
&(2¶VODEHOVRFLDOQHWZRUNVDVDKLJKSULRULW\$UPDQR
Technology has changed the playing field. In recent years TripAdvisor has been
SXEOLVKLQJDOLVWRIWKH³'LUWLHVW+RWHOV´DOLVW\RXGRQRWZDQWWREHRQ6KDUNH\
TripAdvisor, 2011). Social media has turned the business world upside down making it
much harder to defend itself. Companies must have dedicated staff examining the market
for reviews and actively monitoring competitors to survive.
In 2011, the hotel Tennessee Inn charged defamation in which the judge ruled
user opinions are protected. A hotel in Knoxville had to close down its operation when
Judge Phillips rejected the claims in 2012 that such as list would not keep customers
away. On the other hand Croyle, a spokeswoman for TripAdvisor, applauds the court´s
decision, as it continues to publicize the consumers opinion online (Barrouquere, 2013).
The wide reach of these sites can have an overwhelmingly positive or a
devastatingly negative effect on the amount of reservations a hotel receives. With
over 80% of respondents in a Travel Weekly survey stating that they always consult
reviews before booking, having a good relationship with the review site is import. A good
relation with TripAdvisor can provide high-quality guests at higher prices according to
Danette Opczewski, executive vice president for Denihan Hospitality Group (Chipkin,
2012). Many benefits can come from having connections with TripAdvisor and other
review websites. Although having a relationship with the review site is important,
building a relationship with the reviewer is also essential. Management responses to
reviews are important to about 70% of those surveyed by Forrester (Chipkin, 2012).
According to TripAdvisor (2012), hotel managers that actively respond to reviews stand
to generate more business. Over 80% of those surveyed say that good responses to bad
reviews gives them a good impression and show that the hotel truly cares about its guests
(TripAdvisor, 2012). However, management responses can also have a negative effect.
Sixty-four percent of responders said an aggressive or defensive response would make
them less likely to book from that hotel (TripAdvisor, 2012). Responding to past
customers' comments although necessary, must be handled carefully. Recently, hotels
have been taking a more proactive approach in dealing with review websites. Currently,
98% of U.S. properties say reviews are important for booking, and 91% encourage their
guests to post a review. A majority of those properties will also respond to negative as
well as positive reviews (Trip Advisor, 2013). Hotel managers are also using these
Linnes et al.
70
UHYLHZVWRPRWLYDWHWKHLUVWDII$OPRVW+DZDLL¶VKRWHOVFRQJUDWXODWHRUHYHQUHZDUG
employees for positive online reviews. A few hotels have gone as far as investing in
training to encourage additional positive reviews (Trip Advisor, 2013). Travel review
websites are becoming a key element in hotel management.
Although review sites play a major role in booking vacations, it is not without
challenges. One major problem is the lack of authentication of reviews on TripAdvisor.
As a result, hotels can write negative reviews about their competitors, while hiring public
relations companies to write positive reviews about themselves. However, the sites that
do guarantee the authenticity such as Expedia, have too small of a sampling of guests.
Nevertheless, even with their flaws, Trip Schneck, managing partner with District
Hospitality Partners, believes that online reviews are here to stay. Schneck indicates that
the direction of online reviews centers around verification and personalization (Chipkin,
2012).
Travel review websites have grown increasingly influential in recent years. They
have become so influential that they can have a very positive or very negative effect on a
business. How managers handle online reviews has never been more important. However,
because of how quickly things change nowadays, there are still many challenges on the
horizon. Managers will need to be able to adapt to stay on top of this new method
of word-of-mouth communication and proactive in their approaches.
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