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IMPORTANCE OF DIGITAL MARKETING AND DIGITAL
MARKETING STRATEGIES AND TOOLS IN HOSPITALITY
INDUSTRY AND TOURISM
Israilov Adham M.A., Senior lecturer
Odilova Dilbar (bachelor of arts) & Yuldosheva Saodat (bachelor of arts)*
School of Business and Finance, Yeoju Technical Institute in Tashkent,
100121 Tashkent, Uzbekistan
E-mail:
Abstract.
What new opportunities “Digitalization” and “Digital Marketing” have brought to
the sphere of Hospitality and Tourism? As Hospitality Industry and Tourism were flourishing till the
COVID-19 Pandemic situation, with and without the implementation of Digital Marketing strategies
and highly relying on the employment of Digital Marketing Tools. Initially, Digital Marketing was
considered to be one of the auxiliary levers to refer to. Whilst, the current situation of COVID-19
Pandemic Worldwide transmuted Digital Marketing to the main fulcrum, that is the support point of
Hospitality and Tourism Industry. Which, originally aimed at maximizing the revenue and profit of
Hotels and boosting the economy of the country through the Tourism sector, whereas at the present
time it is supposed to help the whole Industry of hospitality and economy of the countries not to
plummet and go bankrupt but to stay afloat.
The review research is done to determine the importance of Digital Marketing in the
Hospitality World and Tourism Industry and analyze which Digital Marketing strategies are best and
worth to implement, and to find out what particular Digital Marketing tools are, actually, useful and
efficacious to work with. The research is done by gathering the secondary type of data: based on the
recent investigations of the researchers, scientific journals, articles, scientific manuscripts, relevant
web-pages, up-to-date news, relevant study books, subject books related to Hospitality and Digital
Marketing as well. In order to give a full and comprehensive picture of the role Digital Marketing,
Digital Marketing strategies and its most effective tools.
Key words:
Digital Marketing, Hospitality Industry, Digital Marketing Strategies, Tourism,
Digital Marketing Tools
Introduction
“
How have the tourism industry and hospitality world changed as a result of
digitalization? What kind of tools and strategies are being employed and applied to attract
and retain customers (in Hospitality Industry customers are referr
ed as “Guests”)? What
solutions are given or advised by Digital Marketing Specialists? And the most intriguing one
is “Which ones (Digital Marketing strategies and Digital tools) are the best
to incorporate in
the Hospitality Industry and Tourism sphere?
”
In this day and age of the modernized era, where people as a customer are getting
more experienced and fastidious, in terms of service quality ones are receiving, so do Digital
Marketing Specialists in the sphere of Tourism Industry and Hospitality World. In addition,
in these days of COVID 19 Pandemic, ecumenically, the role of Digital Marketing as the most
efficient tool of promoting the Hospitality and Tourism Industry product has been
distinguished and acknowledged.
Since the Digitalization took place, starting from the last two decades, the advent of
inevitable changes, new trends, and innovations in the sphere of Tourism industry and
Hospitality World were only a matter of time. Which, in its turn, have to be taken into
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consideration, in analyzing the new streams of information, promoting the services and
collecting the data.
At the first onset, in order to develop a new and efficient marketing plan, marketers
probe the market and current situation and conduct research to have most relevant
information. For instance, the extent of Brand awareness among the population; What type
of Relationship to build between guests (customers) and Hotels; How to promote Hospitality
Industry products and services, so that guests will be eager to receive ones; and to find out
the best possible resources.
(
The Importance of Marketing in the Hospitality Industry | by
Geeta College | Medium
, 2017).
(eZee Editorial Team, 2020)
states that
“Digital marketing strategies for the hotel
business should encompass search engine optimization and numerous paid and organic
channels to give your hotel visibility throughout the research, consideration and final
booking phase.”
Digital Marketing strategies and tools assist Hotels to create Brand awareness by
building strong and maintaining continuous presence online through popular SMP (Social
Media Platforms). For example, TripAdvisor.com, Booking.com, Facebook, Instagram and
others.
(eZee Editorial Team, 2020).
“Internet marketing is the process of building and managing relationships with
consumers through the exchange of ideas, products, and services that satisfy consumers.
Digital marketing is the use of digital technology that aims to create integrated, targeted,
and measurable communications that help to obtain and retain consumers while building
close relationships with them
”.
(Destiana & Kismartini, 2020).
On the impact and importance of Digital Marketing strategies and Digital tools in
Hospitality Industry have been conducted by many researchers such as
(Destiana &
Kismartini, 2020)
,
(De Pelsmacker et al., 2018)
and
(Happ & Ivancsóné Horváth, 2020)
by
employing various methods.
In this manuscript the importance of Digital Marketing and the influence of Digital
Marketing strategies, plans and tools in Hospitality and Tourism had been investigated.
Researchers made an investigation by scrutinizing all the necessary secondary data obtained
from articles, scientific manuscripts, journals, relevant books, social media, news and web
sites.
Literature review
According to
(P. Kotler, 2014)
Digitalization has a great impact on 85%of United State
citizens as they every day, spend at least five hours using various means of digital media.
Moreover, 60 percent of these
citizens utilize ones’ smartphones to access the internet
rather that PC (Personal Computer). While, overall, about 40 % of the population of the
whole world have access to the Internet. Meanwhile, twenty-two percent of them access
through the Mobile internet as well, nonetheless these numbers are expected to double in
the next five years. Furthermore, it is discovered that youth population of the world are
more accustomed to Digital Technology, as an example, NRA (National Restaurant
Association) conducted a survey on usage of phone applications in restaurants. The study
discovered that the phone applications were mainly utilized by clients aged from 18 years
old to 44 years old. Whereas, the rest of respondents, that is about 30 percent were at age
of 55 and older. Thus, more businesses, such as Amazon and OTAs already switched to digital
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mode, and first of all, and are making attempts educate on how to use digital access for all,
both young and old generation by implementation of digital marketing strategies.
In the Hospitality Industry and tourism sphere, designation of Customer Driven-Value
strategy in digitized form plays a pivotal role. As, its first functions are to find and reach a
target market (consumers are referred to as market) and the next one is to focus on the
possible values of them so that Tourism products would attract actual stream clientele.
(P.
Kotler, 2014).
According to
(P. Kotler, 2014)
, with the advent of the Digital age , Direct Marketing
has almost undergone dramatic changes thus new Hospitality companies employ the new
marketing strategies in a digital format. For instance, Priceline.com OTAs (Online Travel
Agencies) in recent years, already could have implemented exclusively online provision of
services by using different means of reaching out to the customers. That means are Digital
and Social media marketing, Online marketing such as Web-sites, online advertising, email
marketing, online videos, blogs and Mobile marketing. However, Online marketing in
Hospitality can be efficiently employed, should be created attractive visuals on the websites
of OTAs’ or Hotels’ websites, all the necessary information should be accessible, and
simplicity in use so that there will be no complications and obstacles with the engaging
customers with the process of inquiring information ones’ need and in building customer
-
brand loyalty.
Digital marketing strategy is not one action but a combination of many various and
unique components
which helps to get the attention of customers (“guests” in Tourism
sphere), and persuade them to purchase the service or product unobtrusively but at a
subconscious level. Which in its turn includes
the framework named “Five
-
Cs”, that is: first,
strategy of a company; second, customer (guest) experience; third, creating the interesting
content (that is tourism product); fourth, creating channel promotion and the fifth, check-
back analysis on the actions that have been taken.
(Diamond, 2015).
(M. Kotler et al., 2020)
4Rs are summary of marketing framework of the digitalized
strategic platforms that is best defined as:
-Recognize - that is the first step, to produce a user profile by collecting data, by
tracing cookies, SDK (Software development kits) and preferences;
- Reach, - engaging into the process, that is by offering customers alternatives such
as Augmented Reality (AR), Virtual Reality (VR), social media, intelligent recommendations;
-Relationship
–
is building between customer and a service provider a strong rapport,
communication and understanding, so that no intermediaries will be involved;
and
-Return
–
the most important R, as all hard work and efforts should return to the
service providers to continue its operation.
(M. Kotler et al., 2020)
gives examples of Digital Marketing strategies applied in
Hospitality World and Tourism Industry, that are:
- Product Service Strategy- that is not possessing but sharing the product. Example,
In the United States of America Airbnb, an accommodation-sharing platform, brought
significant changes to the Hospitality Industry. Which made Airbnb one of the dominant
players in the market of accommodation industry and hotel-type leasing; which means the
product is accessible through mobile applications and SEO (Search Engine Optimization) as
well.
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-Price and Channel Strategies- turning customers into users
by employing “free”
strategy, in 2012 was given free access to West Lake, but offering expensive complimentary
services within the Lake, to make money not from the entrance fee but from the accessories
and other products. As a result, the number of visit of tourists increased and so did the
amount if revenue in tourism about 6 times;
•
service providers into a platform/port of free services or products, as an example,
in Yunnan province in China, the government targeted people from seven provinces and
subsidized group tours so that they would be able to get a free flight. Which had positive
effect contributing in domestic tourism and Hospitality industry within the country, as it
brought about 250 million visits of domestic tourists;
•
combine dynamic and scene pricing- that is increasing the price of Tourism products
and services when they are in high demand to avoid the imbalance between the demand
and supply
“the
•
price is adjusted according to the change in time, space, weather and road
conditions. The price is custom made based on
different scenarios.”
;
(P. Kotler, 2014)
and turning from single channel to multi-channel distribution, such
IRSs (Internet Reservation system) GDS (Global Distribution System) and OTAs;
- Branding Strategy- applying the SMO (Social Media Optimization)
(Are Morch, 2020)
and story-telling with visuals such as in video format so it is more engaging
(eZee Editorial
Team, 2020)
to clearly clarify the ,missions and visions of the service providers so that
guests(customers) will presumably know what to expect in terms of service and whether
ones’ expectations are about to be met or not
.
- Customer Service Strategy:
Changing CRM approach to new SCRM to which’s goal
to
“satisfy the personalized needs of customers and meet their business goals”
(M. Kotler et
al., 2020)
As a Digital Marketing strategy WOM that is Word-of-mouth considers to be changed
to E-WOM(Electronic Word-of-Mouth) but remains the same understanding in terms of
employment according to
(Litvin et al., 2008)
who stated
(Westbrook, 1987)
that any type
of message or information transmission among consumers that is informal is considered to
be WOM.
However, it should represent particular indicators of products, means of utilization
and proprietary rights.
The research on “Study of digital marketing tools usage habits among Hungarian
tourists” defines which marketing tools are more reliable for favorable marketing
communication.
(Happ & Ivancsóné Horváth, 2020)
This paper studied about various digital
tools like OTAs, Distribution systems, Social media sites, Online price comparison
(metasearch) sites, Own websites and more, which can be used for digital marketing as
channels and define what tools are more useful. Based on the results of the research, it has
been found out that people prefer more mobile devices which are more comfortable
compared to other immobile digital devices. Moreover, it has been discovered that people
from different segments are actively using digital devices in their daily life for
communication, work, and entertainment and traveling as well.
(Happ & Ivancsóné Horváth,
2020)
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Likewise, most respondents of research clarified that they use digital tools in order to
make their trip more convenient. Research shows that respondents are actively using
electronic devices and online systems for online payments but when it comes to online
activities where online payment is not needed, customers are more actively using them
compared to those where payment should be done online. Moreover, the result of research
indicates that when there is higher risk of perceiving activity by consumer, the less that
activities actualized online. People are not ready to use full-digitized robotic
accommodations and it is still needed live personal contact for handling complaints and
problem-solving processes. Furthermore, research shows that customers are more inclined
to score services rather than write long reviews, however they prefer to read others reviews
before making a decision, so online service providers need to be more sensitive to online
feedback and reviews.
(Happ & Ivancsóné Horváth, 2020)
.
In addition, it has been discovered that the numerical rating system has a greater
impact on the decision-making process of customers than commercials or word of mouth.
Additionally, it has been defined that females are more easy influenced by others reviews
and opinions.
(Happ & Ivancsóné Horváth, 2020)
.
Research on Digital marketing strategies, online reviews and hotel performance
(De
Pelsmacker et al., 2018)
conducted in 2016 with a total scope of 224 divided into two types
of hotels (independent and chain hotels) identified impact of different digital marketing
strategies and power of online reviews on hotels performance.
(De Pelsmacker et al., 2018)
Research contains a list of various strategies that have an impact on hotels
performance directly or indirectly. However, study discovered that one exact strategy could
affect differently on independent and chain hotels.
(De Pelsmacker et al., 2018)
For example
strategies like using marketing plan, employing tracking software for sifting reviews, fast
response to reviews has greater impact on quantity and valence of online reviews which
lead to higher occupancy and RevPAR for chain hotels nether than independent hotels .
However, among all of strategies attaching third-parties reviews on website and applying
TripAdvisor data and metrics are more vital for high occupancy rate and RevPAR of hotel,
the reason is that both of them has influence on quantity and valence of customer
reviews.
(De Pelsmacker et al., 2018)
Methodology
Procedure and data collection.
In order to define which digital marketing tools and strategies are more reliable and
useful for the Tourism and Hospitality field, we observed several researches, books and
websites related to Digital marketing and Hospitality. Overall, we focused on two main
researches of
(De Pelsmacker et al., 2018)
and
(Happ & Ivancsóné Horváth, 2020)
.
Measures and sample
Eva Happ and Zsuzsanna
Ivancsóné Horváth
from Faculty of Business Department of
Tourism, Széchenyi István University, in Hungary,
conducted research
on “
Study of digital
marketing tools usage habits
among Hungarian tourists” and the scope of
study was n=539
respondents.
The research was conducted by Patrick De Pelsmackera, Sophie van Tilburgb and
Christian Holthofb,
(De Pelsmacker et al., 2018)
defined what kind of marketing strategies
are reliable and efficient for better hotel performance. Therefore, researchers selected
following 10 digital marketing strategies as shown in the table
№ 1
:
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Table
№1.
Digital Marketing Strategies
№
Digital marketing strategies:
1
(a)
a)
Preparing and using a digital marketing plan
2
(b)
b)
Applying TripAdvisor data
3
(c)
Applying TripAdvisor metrics
4
(d)
c)
Employing tracking software for sifting reviews on OTA websites
5
(e)
d)
Appling OTAs operational reports
6
(f)
e)
Quick response on customer reviews
7
(g)
f)
Individual responses to customer reviews
8
(h)
g)
Empower customers to write feedbacks
9
(i)
h)
Easy Access to TripAdvisor by link
10
(j)
Attaching third-parties reviews on website
(De Pelsmacker et al., 2018)
Scope of research was 3
–
4-star chain hotels and independent hotels which made up
n=224 hotels in total.
Results & Discussion
Based on gathered data from researches we present most reliable “Digital marketing
tools” on which service providers should focus more
,
and “Digital
marketing Strategies
” for
better performance with an example of Hotels.
Digital marketing tools like OTAs, social media sites, own websites, distribution
systems and etc. are playing a crucial impact on performance of tourism and hospitality
services. Customers started to use e-tourism easily, and most of the steps for a good trip are
made online via digital tools. Research defined that everything starts with looking through
reviews on OTAs, social media webpages which are important digital marketing tools for
further decision-making process of prospective tourists. Therefore, service providers should
pay more attention to reviews on OTAs, own social websites and all tools where reviews
could be left by customers, all reviews should be observed and replayed within 24 hours
(strategy of quick response to customer reviews) and it has been clarified that online reviews
have impact on occupancy and performance of hotels. However, the impact of reviews is
greater on chain rather than on independent hotels. Therefore, there are some digital
marketing strategies like making marketing plans, applying software for tracking and sifting
reviews and responding to customer reviews quickly, all these strategies lead to higher
quantity and valence of reviews which lead to higher occupancy and RevPAR of hotel.
Conclusion
We conducted systematic review research in order to find answers to questions
related to the importance of Digital Marketing and impact on the Tourism and Hospitality
Industry. Findings from research identifies that role of using digital marketing and tools of
digital marketing is becoming higher, especially during and post-COVID19 period world
become more digitized and tourism as well, also digital marketing has great influence on
decision making process of potential tourists which has direct impact on occupancy and
performance of hotels. One important factor which has an impact on tourism is customer
reviews and ratings, higher rating or big number of positive reviews on OTAs, webpages or
social media (digital marketing tools), leads to more reliable and easier customer decision
making process. Likewise, using proper strategies like reacting and replying to online
feedbacks, reviews and working on them increases valence and quantity of online reviews
and it leads to maximizing occupancy of hotels.
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