The missing link: Creating value with Social Media use in hotels

Abstract

Social Media has transformed the way firms relate to the market. Hotels all over the world are increasingly using these tools, integrating them into their Customer Relationship Management (CRM) strategies to engage customers in active conversations. The use of Social Networking and Review Sites like Tripadvisor has become all pervasive, and hotels are investing large sums of money in engaging customers via Social Media. However, there is a certain degree of skepticism about how these technologies can help to create value. To shed light on the topic, based on a sample of 222 Spanish hotels, this study examines the real impact of Social Media use, showing the key role played by Social CRM capabilities in the process of value creation with these tools. By building on the Resource-based theory, the proposed model shows the pathway between Social Media use and organizational performance, in terms of profitability, sales and customer retention.