The impact of the internet and social media on the hotel industry

How the internet and social media have changed the way hotels need to operate if they are to succeed in today's dynamic and global markets

Essay , 2011 , 17 Pages , Grade: A

Tourism - Hotel Industry / Catering

This paper deals with the impact of the internet and social media on the hotel industry. In particular, it points out how the rules of the game have changed in today’s dynamic and global environment and how hotels need to operate if they are to succeed from a long-term perspective. Likewise, it outlines how activities on both the buy-side and sell-side can be enhanced through the implementation of internet-enabled technologies. Furthermore, the paper highlights barriers that might inhibit further development of e-business. Practical examples are used throughout the paper and an industry analysis using Michael Porter’s Five Forces model and a case study are provided in the appendices in order to promote understanding.

Inhaltsverzeichnis (Table of Contents)

• The Impact of the Internet and Social Media on the Hotel Industry
• Introduction
• The Internet as a Force of Disruption
• Impact on the Buy-Side of the Supply Chain
• Impact on the Sell-Side of the Supply Chain
• New Business Models
• The Rise of the Prosumer
• The Power of Customer Reviews
• Challenges for Hotels in the Digital Age
• The Role of Technology in Hotel Management
• Barriers to E-Business Development
• The Importance of Strategic Capabilities
• Employee Resistance to Change
• Developing a Culture of Empowerment
• Outsourcing E-Business Activities
• The Role of Social Media in the Hotel Industry

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper examines the impact of the internet and social media on the hotel industry. It explores how these technologies have transformed the industry's landscape and how hotels can adapt to thrive in this dynamic environment. The paper also highlights barriers to e-business development and the importance of strategic capabilities for success.

• Impact of the Internet and Social Media on the Hotel Industry
• E-Business Strategies for Hotels
• Challenges and Barriers to E-Business Development
• The Role of Technology in Hotel Management
• The Importance of Strategic Capabilities

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This section sets the stage for the paper by introducing the topic of the internet's impact on the hotel industry. It highlights the disruptive nature of the internet and its transformative effect on various industries.
• The Internet as a Force of Disruption: This section delves into the specific ways in which the internet has disrupted the hotel industry. It discusses how the internet has increased buyer power, reduced switching costs, intensified competition, and facilitated disintermediation.
• Impact on the Buy-Side of the Supply Chain: This section examines how the internet has transformed the way hotels interact with their suppliers. It highlights the benefits of e-procurement systems and how they can increase process efficiency, reduce costs, and improve data integration.
• Impact on the Sell-Side of the Supply Chain: This section focuses on how the internet has revolutionized the way hotels sell their services. It explores the emergence of online intermediaries and booking platforms, such as booking.com and Expedia, and their impact on hotel sales.
• New Business Models: This section explores new business models that have emerged as a result of the internet. It uses the Omena Hotels case study as an example of how the internet has facilitated the creation of innovative and efficient hotel models.
• The Rise of the Prosumer: This section delves into the concept of "prosumerism" and how customers have become more proactive and engaged in the hotel industry. It discusses the role of interactive hotel websites, travel-related social media platforms, and social networks in facilitating this shift.
• The Power of Customer Reviews: This section explores the significance of online hotel reviews and their impact on customer behavior. It examines the growing reliance on reviews by travelers and the importance for hotels to prioritize service quality and effective communication.
• Challenges for Hotels in the Digital Age: This section identifies some of the challenges that hotels face in the digital age. It highlights the need for hotels to adopt effective reputation management techniques, take customer feedback seriously, and continuously improve their services to maintain competitiveness.
• The Role of Technology in Hotel Management: This section explores the role of technology in hotel management. It discusses the need for hotels to develop dynamic capabilities, embrace change, and use technology effectively to stay ahead of the competition.
• Barriers to E-Business Development: This section explores the barriers that hotels face in developing effective e-business strategies. It highlights the importance of having a sound strategy, appropriate strategic capabilities, and a culture that encourages learning and empowerment.
• The Importance of Strategic Capabilities: This section emphasizes the importance of strategic capabilities for hotels to thrive in the digital age. It discusses the need for hotels to adopt dynamic thinking, develop emergent strategies, and adapt to changing market conditions.
• Employee Resistance to Change: This section examines the challenge of employee resistance to change in the context of technology adoption in hotels. It emphasizes the importance of building a culture that promotes learning, commitment, and empowerment to overcome this resistance.
• Developing a Culture of Empowerment: This section discusses the importance of developing a culture that encourages mutual learning, commitment, and empowerment for hotels to successfully embrace change and improve their services.
• Outsourcing E-Business Activities: This section explores the benefits and challenges of outsourcing e-business activities to third-party agencies. It highlights the importance of aligning outsourcing strategies with the hotel's business strategy and ensuring effective integration with existing marketing activities.
• The Role of Social Media in the Hotel Industry: This section discusses the potential benefits and challenges of using social media in the hotel industry. It examines the debate surrounding the effectiveness of social media for hotels and the need for empirical evidence to support its use.

Schlüsselwörter (Keywords)

This paper focuses on the impact of the internet and social media on the hotel industry, emphasizing key concepts like e-business strategies, customer reviews, strategic capabilities, employee resistance to change, and the role of technology in hotel management. The paper explores themes of disruption, transformation, and the need for adaptability in today's dynamic global environment. It also addresses the importance of developing a culture of empowerment and leveraging technology to improve service quality, increase customer satisfaction, and gain a competitive edge.

• College: The University of Surrey
• Grade: A
• Author: BA (Hons) Christoph Müller (Author)
• Publication Year: 2011
• Pages: 17
• Catalog Number: V170753
• ISBN (eBook): 9783640897438
• ISBN (Book): 9783640897582
• Language: English
• Tags: internet, social media, hotels, hotel industry, supply chain, e-business, facebook, tripadvisor, social media marketing, online communications, website