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
\nusing these tools, integrating them into their Customer Relationship Management (CRM) strategies to
\nengage customers in active conversations. The use of Social Networking and Review Sites like Tripadvisor
\nhas become all pervasive, and hotels are investing large sums of money in engaging customers via Social
\nMedia. However, there is a certain degree of skepticism about how these technologies can help to create
\nvalue. To shed light on the topic, based on a sample of 222 Spanish hotels, this study examines the real
\nimpact of Social Media use, showing the key role played by Social CRM capabilities in the process of value
\ncreation with these tools. By building on the Resource-based theory, the proposed model shows the pathway
\nbetween Social Media use and organizational performance, in terms of profitability, sales and customer
\nretention.