UNIVERSITY OF DEBRECEN, CENTRE FOR AGRICULTURAL SCIENCES AND ENGINEERING, FACULTY OF APPLIED ECONOMICS

AND RURAL DEVELOPMENT INSTITUTE OF ECONOMIC ANALYTICAL METHODOLOGY AND APPLIED INFORMATICS

Power of social media in the

tourism industry
GERGELY RÁTHONYI
PH.D. STUDENT
KÁROLY IHRIG DOCTORAL SCHOOL

SUPERVISOR: LÁSZLÓ VÁRALLYAI

Thursday, September 27, 2012 1

 OUTLINE
• IMPORTANCE OF THE TOPIC
• WEB 2.0 AND TRAVEL 2.0, SOCIAL MEDIA
• SOCIAL MEDIA APPLICATIONS IN TOURISM
– SOCIAL NETWORKING SITES
– TRAVEL BLOGS
 CHANGES IN TOURISM
• WIDE SPREAD OF THE INTERNET; DEVELOPMENT OF ICTS
• PLATFORM OF TOURISM INCREASINGLY GET TO THE INTERNET.
(VITALLY IMPORTANT: INFORMATION-BASED INDUSTRY)

• TRAVELLERS HAVE TO COLLECT A LOT OF INFORMATION.

(REDUCE THE RISK OF TRAVEL RELATED PURCHASE)
• PROPER INFORMATION INCREASE THE QUALITY OF THE TRIP
• TOURISTS ACCESS SUCH INFORMATION AND PURCHASING
OPPORTUNITIES WHICH WERE ONLY AVAILABLE WITH THE HELP
OF INTERMEDIARIES EARLIER.
 CHANGES IN TOURISM II.
• WEB 2.0 HAS FUNDAMENTALLY CHANGED THE WAY OF
INFORMATION SEARCH BEHAVIOUR AND TRAVELLING DECISION
MAKING PROCESS OF TOURISTS.

• TRAVELLERS HAVE BECOME MORE INDEPENDENT,

EXPERIENCED, FLEXIBLE AND SOPHISTICATED. (IN ARRANGING
THEIR TRIPS)

• TOURISTS HAVE ACCESSED COUNTLESS RELIABLE AND

APPROPRIATE INFORMATION PROVIDED BY MORE AND MORE
OTHER USERS/TRAVELLERS. (CONSUMERS INCREASINGLY RELY ON
OTHER TRAVELLERS’ EXPERIENCES, THEREFORE INFORMATION SEARCH IS
MOVING TO ONLINE SOCIAL MEDIA)
 WHAT IS WEB 2.0?
• COMPLEX PHENOMENON:
• TECHNOLOGICAL
• BUSINESS-PHILOSOPHICAL
• SOCIOLOGICAL
• ALSO KNOWN AS PEOPLE-CENTRIC WEB, PARTICIPATIVE WEB, SOCIAL
MEDIA.

• WEB 1.0 : USERS ARE THE PASSIVE VIEWER OF CONTENT THAT WAS
CREATED FOR THEM
• WEB 2.0 : A PLATFORM FOR USERS TO INTERACT AND COLLABORATE
WITH EACH OTHER
• TRAVEL 2.0 : EXTENSION OF THE CONCEPT OF WEB 2.0 IN TOURISM
INDUSTRY
 DEFINITION OF WEB 2.0
• “AN ATTITUDE RATHER THAN A TECHNOLOGY”. (O’REILLY, 2004)

• “ TOOLS OF MASS COLLABORATION”, INTERNET USERS ACTIVELY

PARTICIPATE AND COLLABORATE WITH OTHER USERS IN ORDER TO
CREATE, USE AND SHARE INFORMATION. (SIGALA, 2007)

• “ THE SECOND-GENERATION OF INTERNET-BASED SERVICES

THAT LET PEOPLE COLLABORATE AND SHARE INFORMATION
ONLINE IN PERCEIVED NEW WAYS SUCH AS SOCIAL
NETWORKING SITES, BLOGS, WIKIS, VIDEO SHARING SITES,
WEB APPLICATIONS, AND COMMUNICATION TOOLS”. (BUHALIS –
JUN, 2011)
 SOCIAL MEDIA
• THERE IS NOT YET AN AGREED TERM TO DESCRIBE SOCIAL MEDIA.
• SOCIAL SOFTWARE, SOCIAL WEB SITES, CONSUMER-GENERATED MEDIA, USER-GENERATED
MEDIA, USER-GENERATED CONTENT WEBSITES,
WEB 2.0

• IN ADDITION TO THE TERMINOLOGICAL ISSUES, THE ACADEMIC

LITERATURE ALSO EVIDENCES A DISAGREEMENT ON THE TAXONOMY
OF SOCIAL MEDIA.
• SOCIAL NETWORKING, PROFESSIONAL NETWORKING, BLOGS, MICROBLOGGING, PICTURE
SHARING, VIDEO SHARING, SOCIAL BOOKMARKING, USER FORUMS, RSS, PODCASTS,
WIDGETS, CHAT ROOMS.

• DESPITE DISAGREEMENT, THE TERM SOCIAL MEDIA IS GAINING THE

WIDER ACCEPTANCE AMONG RESEARCHERS.
 SOCIAL MEDIA II.

• “ A GROUP OF INTERNET-BASED APPLICATIONS THAT

BUILD ON THE IDEOLOGICAL AND TECHNOLOGICAL
FOUNDATIONS OF WEB 2.0, AND THAT ALLOW THE
CREATION AND EXCHANGE OF USER-GENERATED
CONTENT”. (KAPLAN AND HAENLEIN, 2010)
 SOCIAL MEDIA III.
TOURISTS TOURISM BUSINESSES

TRAVEL 2.0 DESCRIBES A NEW THE CONCEPT OF WEB 2.0

GENERATION OF WEBSITES WITH PROVIDES UNPARALLELED
NEW TECHNOLOGIES WHICH ENABLE OPPORTUNITIES FOR TOURISM
SOCIAL COLLABORATION AMONG COMPANIES TO ATTAIN SCORES OF
TRAVELLERS. PEOPLE, TO UNDERSTAND A
A PLATFORM WHERE TOURISTS CAN MARKET’S REACTION TO THEIR
SHARE THEIR FIRST-HAND PRODUCTS AND TO USE THIS
EXPERIENCES, OPINIONS WITH INFORMATION IN THEIR BUSINESS
OTHER TRAVELLERS. DEVELOPMENT TO ACHIEVE
OPINIONS OF OTHER TRAVELLERS BETTER POSITION IN THE STRONG
HAVE INFLUENCE ON THE TOURISTS’ COMPETITIONS.
TRAVEL DECISION MAKING PROCESS.
 SOCIAL NETWORKING SITES
FACEBOOK HAS OVER 955 MILLION
MONTHLY ACTIVE USERS WORLDWIDE,
552 MILLION DAILY ACTIVE USERS ON
AVERAGE, 543 MILLION MONTHLY
ACTIVE USERS WHO USED FACEBOOK
MOBILE PRODUCTS.
TRIPADVISOR SERVES MORE THAN
74 MILLION USERS PER MONTH
WHO SEEK ADVICE ABOUT THEIR
TRAVEL PLANS AND HOSTS MORE
THAN 75 MILLION REAL TRAVEL
REVIEWS AND OPINIONS.
 SOCIAL NETWORKING SITES II.
TOURISTS TOURISM BUSINESSES
•SOCIAL NETWORKING SITES IN SOCIAL NETWORKING SITES ENABLE
CONNECTION WITH TOURISM TOURISM BUSINESSES:
ENCOURAGE TRAVELLERS TO POST AND • REACH MILLIONS OF PEOPLE
SHARE THEIR TRAVEL EXPERIENCES, (ONLINE), WHO SPEND A LOT OF
COMMENTS, OPINIONS TO SERVE AS A TIME ONLINE
SOURCE OF INFORMATION FOR OTHER
EFFICIENT OPERATION (FREE OF
• COST
USERS.
CHARGE),
•TOURISTS REGARD THIS INFORMATION
• CONDUCTING FREE MARKET
AS TRUSTWORTHY AND BENEFICIAL
RESEARCH (ACCESS TO A
GREAT DEAL
THAT’S WHY THEY SEEK THE OPINIONS
OF INFORMATION ABOUT USERS AND
OF THE FELLOW TRAVELLERS INSTEAD
THEIR INTERESTS).
OF PROFESSIONAL TRAVEL ADVICE.
 SOCIAL NETWORKING SITES’
IMPACT ON TOURISTS
• MORE THAN HALF (52%) OF THE US TRAVELLERS HAVING
CHANGED THEIR ORIGINAL PLANS AFTER SEEKING THEIR TRIP ON
DIFFERENT SOCIAL MEDIA SITES.
• 70% OF THE RESPONDENTS UPDATED THEIR FACEBOOK STATUS
DURING VACATION,
• 76% POST VACATION PHOTOS TO A SOCIAL NETWORK SITE,
• 55% ‘LIKED’ FACEBOOK PAGES IN CONNECTION WITH A VACATION.
• 46% OF TRAVELLERS POST HOTEL REVIEWS AFTER THEIR TRIP.
• SOCIAL NETWORKING SITES ALTERED THE TRAVEL PLANS OF MORE
THAN HALF OF THE RESPONDENTS WHO USE IT AND MORE THAN A
THIRD OF PEOPLE CHANGED THEIR HOTELS AS A RESULT OF WHAT
THEY FOUND ON SOCIAL NETWORKING SITES.
Source: Funsherpa Infographics; World Travel Market 2011 Industry Report
 SOCIAL NETWORKING SITES’
IMPACT ON TOURISM BUSINESSES
• ACHIEVE BETTER POSITION IN THE COMPETITION FOR THE GRACE OF
TOURISTS.
• MANY TOURISM BUSINESSES USE THEIR FACEBOOK PAGES
o ATTAIN SCORES OF PEOPLE (EASILY, CHEAPLY AND QUICKLY ),
o MAINTAIN CONNECTION WITH THEIR GUESTS,
o GIVE OPPORTUNITY FOR RESERVING THEIR ACCOMMODATION ON THE PAGE.
• BY ANALYZING THE COMMENTS ON TRIPADVISOR, BUSINESSES ARE ABLE TO
MONITOR AND GET BETTER UNDERSTANDING WHAT THEIR GUESTS
LIKE AND DISLIKE ABOUT THEM AND EVEN THEIR COMPETITORS,
WHICH CAN HELP BUSINESSES TO STRENGTHEN WEAKNESSES AND
IMPROVE WHAT VISITORS LIKE.
• 50% OF US TRAVEL COMPANIES SAYING THAT DIRECT BOOKINGS
HAVE BEEN GENERATED FROM SOCIAL NETWORKING SITES.
Source: Funsherpa Infographics;
 TRAVEL BLOGS’ IMPACT ON
TOURISTS
• GRETZEL AND YOO (2008) HAVE SHOWN THAT “BLOGS PLAY AN IMPORTANT
ROLE IN THE TRIP PLANNING PROCESS FOR THOSE WHO ACTIVELY READ THEM.
THEY PROVIDE IDEAS, MAKE DECISIONS EASIER, ADD FUN TO THE PLANNING
PROCESS AND INCREASE CONFIDENCE BY REDUCING RISK MAKING IT EASIER TO
IMAGINE WHAT PLACES WILL BE LIKE”.

• EMARKETER (2008) FOUND THAT 82% OF US ONLINE CONSUMERS HAVE

CHECKED ONLINE REVIEWS, BLOGS AND OTHER ONLINE FEEDBACK FOR THEIR
TRAVEL RELATED PURCHASING DECISIONS.

• WHEN READING AND SHARING ONE’S TRAVEL EXPERIENCE THROUGH WEBLOGS,

THIS ALSO CREATES THE WILLINGNESS TO TRAVEL AND VISIT THE SAME
DESTINATION OR SUPPLIERS TO OTHER AS WELL.
 TRAVEL BLOGS’ IMPACT ON
TOURISM BUSINESSES
• TOURISM BUSINESSES PAY EVEN MORE ATTENTION TO ONLINE TRAVEL
BLOGS IN ORDER TO :
– COMMUNICATE WITH THEIR GUESTS, AND ENHANCE THEIR LOYALTY,
– CREATING INTEREST AND APPEAL TO THEIR PRODUCTS / SERVICES,
– CONDUCTING AN EASY, FREE, TIMELY AND RELIABLE MARKET RESEARCH
ABOUT TRAVELLERS’ PREFERENCES, FEEDBACK AND PROFILE,
– MONITORING AND INFLUENCING ELECTRONIC WORD-OF-MOUTH,
– COMMUNICATING WITH CURRENT AND PROSPECTIVE TRAVELLERS IN A VERY
PERSONAL AND INFORMAL WAY,
– ENHANCE SEARCH ENGINE OPTIMIZATION: BLOGS ARE BECOMING VERY
IMPORTANT TOOLS AFFECTING INFORMATION SEARCH SINCE THEIR LINKS,
CONTENT AND POPULARITY CAN DICTATE THE POSITION OF A COMPANY ON A
SEARCH ENGINE SEARCH.
 SUMMARY
• ALL IN ALL, RESULTS OF DIFFERENT STUDIES SHOW THE IMPORTANCE OF SOCIAL
MEDIA IN TOURISM.
• AN OPINION OR RECOMMENDATION FROM AN ACQUAINTANCE OR FRIEND HAS
A HUGE IMPACT ON THE TOURISTS’ TRAVEL DECISION MAKING PROCESS, WHICH
CAN ALTER THE ORIGINAL PLAN OF TOURISTS.
• ON THE OTHER SIDE SOCIAL MEDIA AND DIFFERENT WEB 2.0 APPLICATIONS
PROVIDE TOURISM COMPANIES, UNIQUE OPPORTUNITIES TO EASILY, CHEAPLY
AND QUICKLY REACH SCORES OF PEOPLE, UNDERSTAND A MARKET’S REACTION
TO THEIR OFFERING AND USE THIS INFORMATION IN THEIR BUSINESS
DEVELOPMENT.
• OPINIONS, REVIEWS AND RECOMMENDATIONS OF MILLIONS OF (POTENTIAL)
TOURISTS IN DIFFERENT TRAVEL RELATED SOCIAL MEDIA SITES HAS EXERT AN
INFLUENCE ON THE TOURISM INDUSTRY TO ADAPT TO THE WEB 2.0 EFFECT
AND TO DEAL WITH THE NEW NEEDS AND EXPECTATIONS OF TOURIST.
Thank you for your
attention!