Member Article

Hospitality sector urged to embrace social media

Over 10% of businesses in the hospitality and leisure sector drum up half of their sales using social media, according to new research from Barclays.

Statistics have shown that despite the wide benefits for a lot of hotels, pubs, restaurants and tourism firms, more than 60% of companies in the leisure industry only see “some” or “limited” need to use social media.

While influential sites such as TripAdvisor, Facebook and Twitter are often used by consumers to decide where they travel, dine and relax, 29% of industry respondents to Barclays said a quarter of their sales could be linked to social media.

Furthermore, 68% found they had “positive” or “very positive” experiences with social media when it was used to attract new customers or to receive positive reviews.

Mike Saul, head of hospitality and leisure at Barclays said: “Social media is everywhere, and for many businesses it not only influences and directly generates sales, but provides a personal link with consumers, building loyalty and driving repeat footfall.

“This is vital when consumers are increasingly cost-conscious and discerning about where they choose to spend their hard earned cash.”

Despite these assertions, over 10% of operators in the industry do not use social media on any platform because they do not see the value in it.

Mr Saul continued: “The industry is missing a trick. Social media […] has blurred the line between personal and corporate communities - something that has been encouraged by consumers who now expect to be able to interact in an immediate and very personal way, not just with friends, but with their favourite - and not so favoured - brands.

“This can create a very powerful feedback loop — if operators can successfully tap into these networks, both good and bad reviews can be used to their advantage.

“If a flight or dinner reservation is delayed for example, it’s easy for consumers to vent their frustration to the online world — the trick is being able to respond helpfully, turning a negative experience into a positive one. Getting the strategy right is key.”

Barclays said many companies are concerned that social media is too time consuming and could have a negative impact on their business’ reputation.

58% of operators said social media’s role will significantly increase over the next year, however many (25%) give online responsibilities to non-specific in-house staff, rather than a social media expert.

It was also found that 44% of operators have a presence on Facebook and Twitter, but only use the sites on rare occasions.

Mr Saul commented: “Just having a presence..on social media is not enough — there needs to be a strategy driving it.

“Consideration needs to be given to how the information generated through social media is used, and we’re already seeing canny operators merging such initiatives into their wider marketing campaigns, targeting potential customers in a more focused manner.
“However, the industry has a long way to go - social media has a lot of potential and ignoring it would be a mistake.”

This was posted in Bdaily's Members' News section by Miranda Dobson .