Wednesday, 03 February 2010



Does social media matter? Not yet
Posted by Patrick Mayock at 12:00 AM

Social media has gotten a lot of attention at trade shows and in the trade press in the past year, but how important are the likes of Facebook and MySpace when it comes to influencing whether or not a traveler stays at your hotel?

The short answer: Not much. At least not now, anyway.

According to the most recent travelhorizons survey, which is co-authored by Ypartnership and the U.S. Travel Association , only one in 10 Facebook users seeks advice about either destinations or travel service suppliers, and just one in 20 has joined a community of users who share a common travel interest.

Some key stats from the survey:

  • 11 percent ask advice about a destination
  • 8 percent ask advice about a travel supplier
  • 6 percent learn about travel deals
  • 5 percent get updates on destinations and travel suppliers
  • 5 percent have joined a community with like travel interests

These findings intrigued me. After attending conference panels and reading articles (even from HNN) that laud social media as an indispensable means to reach guests, why are so few consumers reciprocating these efforts?

To find the answer, I conducted an incredibly unscientific survey in which I asked a few out-of-industry peers, all of whom travel at least five times a year, whether they use social media for travel-related purposes and, if not, why.

The most common response dealt with access and credibility. Instead of using social media to read up on their next travel destination, they more commonly used Google searches or visited Web sites that they knew had the information they wanted. And if not searching online, they were just as likely to call a friend—we all remember that anachronistic telephone device, don’t we?—to research or ask for advice.

With better sources of information out there, social media quickly fell to the wayside.

Or as one friend put it, “I’d rather use Facebook to find girls we graduated with from college than to look for hotel deals.”

So am I saying that the social-media revelation is a dismissible myth? No. As the technology and its uses evolve, it could very well become that “indispensable means” we so often hear about.

Peter Yesawich, Ypartnership’s chairman and CEO, explained as much in a recent blog: “How quickly (these survey results) may change is a matter of considerable speculation given the remarkable rate of penetration these sites have achieved in such a short period of time. Yet, for now, consumers continue to seek and respond to information about travel services and suppliers from more established offline and online media sources.”

And now if you’ll excuse me, I must visit the South Carolina Department of Tourism’s Web site to plan my summer vacation …




4 Comments
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05 February 2010 at 10:25 AM EST
In response to: Does social media matter? Not yet
HeadStand commented:
Two LARGE "re"-considerations, please! 1. The 5-11% in your key stats survey...merely need to have a little math applied to them to be eye-popping - i.e.: 5% of FaceBook ALONE is equivalent of 0.05 x 200 MILLION = 40 million! Granted, there is some duplicity, and Facebook may not have an audience that is as demographically suited for travel related surveys as say - Linkedin or Meetup...but that's still a LARGE number! 2. Jump forward to a time when a Social/Professional network has applications WELL beyond ratings and referrals...and could actually be PART OF THE DECISION CRITERIA - just like location/price/services are today. I was recently Googling for "travel with friends" or something similar...and bumped into a "beta test" for a new travel website (www.GOBirdsOfAFeather.com) that apparently is able to "sort" reservation requests with any Social/Professional Network "group" you belong to AND show you where other "Harley Lovers" or "Golfers" or "Old Movie Buffs" are ALREADY staying! Think of the importance THEN...when a hotel could open less rooms to DEEP discount OTA's like Priceline and Hotwire...because "Social Sites" (like described above) are able to steer a decision towards "WHO" is at a hotel...rather than simply price...and capture it at a slightly better rate. Do the math on just 5% of a 200-room hotel's rooms on a given night (running 60% annual occupancy with $95 ADR). That's .60 x 200 x 0.5 x $95 x 36 days = $208,050! Nothing to sneeze at, and that's with no additional capital, labor, or (other than a reasonable commission) sales/markeitng expenses!

03 February 2010 at 8:17 PM EST
In response to: Does social media matter? Not yet
Lizzette Casarin commented:
and just to drive the point a little bit harder, here is how videos, speak louder than advertisement for hotels. Do a search for worst hotel and you'll see. http://www.youtube.com/watch?v=eH0W68FIHuI http://www.youtube.com/watch?v=lpLBGBzX1vE&feature=related http://www.youtube.com/watch?v=kt5p9eJ3C8w&feature=related

03 February 2010 at 7:54 PM EST
In response to: Does social media matter? Not yet
Lizzette Casarin commented:
I completely agree with Lisa, social media is defined as media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media uses Internet and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). It supports the democratization of knowledge and information, transforming people from content consumers into content producers. Businesses also refer to social media as user-generated content (UGC) or consumer-generated media (CGM). According to that definition, sites like tripadvisor, yelp, yahoo travel, virtual tourist, expedia, travelocity, and orbitz among others are considered social media, for that matter all sites that allow social interaction through commentary are within social media. Thus, social media has a huge impact in the hospitality industry, especially given the fact that 96% of Gen Ys have joined social media one way of another. We see hotels planning and designing new producto for Gen X and Gen Y, so they should also get up-to-date with social media. Additionally, social media is the No. 1 activity on the web; 80% of Twitter usage is on mobile devices, people update anywhere, anytime, imagine what that means for bad customer service? Now more than ever, word of "mouse" is one of the most important parts to consider for customer retention and attraction. Here are more facts: 25% of search results for the World's Top 20 largest brands are links to user-generated content; 34% of bloggers post opinions about products & brands. A recent survey shows that 78% of consumers trust peer recommendations and only 14% trust advertisements. I think social media, as defined, highly impacts the hospitality industry. Your perception of social media only include sites like Facebook, MySpace, etc. You need to truly understand what social media is before you write an opinion like this.

03 February 2010 at 6:56 PM EST
In response to: Does social media matter? Not yet
Lisa Peyton commented:
Customers will most likely not use social media to find hotel deals until the travel industry learns to use social media to provide real value to their prospects. It can't just spew out deals and expect folks to jump on-board. I feel social media is ripe for providing real value, real-time through-out many industries such as travel, food service and hospitality. Websites like Lonely Planet and TripAdvisor thrive because of the element of community and social networks. Travel review websites are a form of social media, let's not forget, and if you ask your buddies if they checked out the reviews of hotels before booking I bet a large number would say 'Yes'. That's my 2 cents, Lisa Peyton www.bonfiresocialmedia.com



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