Hospitality industry must adapt to impact of social media

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Social media influences can have both a positive and negative effect on an establishment’s reputation and it is no longer one-way communication. It now leads to an interactive dialogue which may create a viral effect to a global audience with immediacy. It has become common for consumers to engage with social networking sites to make informed decisions about their travels or choice of restaurant. It has also become a popular platform for consumers to share their personal experiences.

Credibility of reviews

“What makes this challenging is that there is no criteria, qualification or verification processes set in place to judge the credibility of the reviews. This, therefore, opens the door for anyone to misuse the free accessibility of these forums,” explains Paul Duverge, general manager of Menlyn Boutique Hotel.

Social media can also provide benefits to the industry and it is important for hospitality management to be leveraging social media. “It is an opportunity for companies within this sector to integrate social media efforts with overall marketing efforts. This will enable them to recognise core values that attract clients and customers,"Duverge adds.

"In addition to this, it helps in brand awareness and building brand equity. New digital tools allow businesses like ourselves to analyse our market to determine and reveal certain preferences and trends associated with our target audiences.”

Improving relationships

Social networking analytic tools serve as a way for the hospitality trade to improve on customer relationship management. The digital nature of the communication channels encourage transparency in consumer responses. The results are that hotels, lodges, restaurants, guest houses, etc. can readily engage with consumers and update their services and product offering for quick improvements that have long-term pay-offs.

“The use of social media builds an ongoing relationship with customers which is important for businesses within our field. Digital communication channels have become strategic tools which should be used for continuous brand management. With the rapid changes in technology, it is essential for hospitality operators to consider the impact of social media,” Duverge concludes.