PYC Nepal Journal of Management, 9(1), 2016/ Social Media Marketing in Nepal/ Sthapit & Khadka SOCIAL MEDIA MARKETING IN NEPAL: A STUDY OF TRAVEL INTERMEDIARIES OF THE KATHMANDU VALLEY
Arhan Sthapit*1 and Ishwor Khadka2 * Correspondence Author Abstract The paper examines the status of social media marketing activities in Nepal in the context of that of travel intermediaries in the Kathmandu Valley, and specifically probes into three key areas: use of social media in travel intermediary business, influence of social media on customers and customers’ response to social media sites (SMSs). Adopting a mixed study approach, the paper made use of both primary surveys (on travel intermediaries and customers between March-May, 2016) and secondary data search from the former’s SMSs for which a convenience sampling technique was used to choose the intermediaries from the Thamel area, the main travel-tourism business hub of Nepal. The study found constant rise in the use of social media by travel intermediaries in communicating about product and price, which customers also most look for and respond to. Facebook alone and Facebook in combination with other social media were most popular among both intermediaries and customers; and SMSs are influential in making most customers buy the mixed category of travel products. What of the SMSs influences the customers most is the recall factor of the sought product information and comments and reviews. The findings can be useful to the travel managers in strengthening their social media marketing. Type of Paper: Research Paper Keywords: Social media marketing, social media sites, travel intermediaries Word count: 5,790
1. Introduction Social media, as one of most powerful online networking tools, has been integrated into a part of social and economic life in the real world, and its use as the means of marketing travelrelated services has also increased unprecedentedly in the recent times (Sthapit, 2015). New web technologies of social media permit one to create and distribute their own contents and information as well as post their comments or feedback instantly; and these benefits have attracted many travel agents and intermediaries to make use of social media in their marketing efforts. Social media has offered new ways in which consumers of travel business connect socially, by integrating information and communication technology, social interaction, and the construction of words, pictures, videos and audios.
1
Dr. Sthapit is Asst. Professor at Faculty of Management (Public Youth Campus), Tribhuvan University. His areas of interest include Strategic HR and International Business. He can be reached via
[email protected] 2 Mr. Khadka is a freelance researcher with special interest in travel business and marketing. He can be reached via
[email protected].
PYC Nepal Journal of Management, 9(1), 2016/ Social Media Marketing in Nepal/ Sthapit & Khadka Jashi (2013) posited social media marketing as a strong instrument to forward tourism and hospitality industry in any country. Zivkovc, Gajic and Brdar (2014) described social media as low-cost and bias-free and it would represent an advantage for marketing communications. Social media allows travel intermediaries to communicate with clients or potential clients in different tones and formats than any other marketing channel. It is also helping travel intermediaries connect easily with their target audience and enjoy higher loyalty from their users where travel intermediaries also permit its customers to put desire information on the wall of social media and sites who wish to travel and purchase tourism products for the purposes of tourism activities. Travel intermediaries would find social media not only for attracting customers, but also for retaining them. Claire (2012) found that Facebook, Twitter, Google+, Blogs and many other web-based social media platforms influenced the tourists about their decision of choosing a destination. Linked-in, Instagram and YouTube can be other additions. Travel intermediaries in Nepal also have operated their websites where users can generate their own contents, from short films on YouTube and Facebook status updates to re-posting links on Twitter; and even customers buy tickets online. Hence, it is pertinent to examine the status of social media use in marketing activities of Nepali travel intermediaries.
2. Objectives of the Study In view of the above discussion, the paper has primarily aimed at examining the use of social media in marketing activities of travel intermediaries in Nepal followed by the specific objectives as under: •
To identify and assess the use of social media in marketing activities of travel intermediaries in Nepal;
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To appraise the influence of social media on travel customers; and
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To assess the customer response to travel intermediaries’ social media
3. Literature Review In the context of examining the use of social media in marketing activities of travel intermediaries in Nepal, literature was reviewed of two types: conceptual framework and related empirical works. 3.1. Review of Conceptual Framework Admin (2010) stated that social media as a major marketing tool to build leads by sharing passion for travel as well as travel expertise with audience. Gretzel and Yoo (2008), Gretzel, Yoo and Purifoy (2007); O’Connor (2008); Xiang and Gretzel (2010), Volo (2010), and Amaro and Duatre (2013) have highlighted the importance of social media in disseminating travel information and purchase decision making process. Wang and Fesenmaier (2004) identified that social media as useful for managing customer relations with their unique ability of attracting customers through in-depth, focused, and member generated content, engaging customers through social interactions, and retaining customers through relation building with other members who are online. Social media is predominantly used during before the trip stage for information search purpose (Cox Burgess, Sellitto, & Buultjens, 2009 as cited in Fotis, Buhalis & Rossides, 2012). Van der Bank and Van der Bank (2015) stated that many social media including Facebook have been themed on tourism and travel allowing users to share information. An AET report (2013) as well as Monica (2013) and Khadka (2016) also identified Facebook as one of the best places for a travel intermediary to start off the marketing action on any social media.
PYC Nepal Journal of Management, 9(1), 2016/ Social Media Marketing in Nepal/ Sthapit & Khadka Gretzel, Yoo and Purifoy (2007) reported that travellers’ opinions on online travel review sites were the most frequently used source of information. Social media is becoming the primary medium by which travel information is shared (Xiang & Gretzel, 2010 as cited in Lange & Elliot, 2012). Travellers that search for travel information online are more likely to purchase travel through social media, as they place a high degree of trust in the social media network and initially, information is gathered and synthesised from other travellers (Amaro & Duatre, 2013; Amaro, Duatre, & Henrique, 2016). Knowledge of the travel destination is acquired through social interaction (Beresford Research, 2009; Buhalis & Law, 2008 as cited in Lange & Elliot, 2012). Social media in travel sector have great potential, as it enables travel entities to streamline their resources and best practices to meet consumer needs, and travellers benefit, vacation planning is cost effective and time effective (Dippelreiter, Grun, Pottler, Seidel, Berger, Dittenbach & Pesenhofer, 2008). Nguyen and Wang (2011) outlined that social media in marketing activities like tourism destination promotion and engage the customers to reach the potential visitors. Indeed, social media as one of internet communication options is an area of growth in the online marketing communication. They further outlined that social media in creating customers’ engagement and destination brands may contribute to the success of activities of marketing strategies of travel intermediaries. 3.2. Review of Empirical Studies Monica (2013) reported that Facebook alone generated some 1 trillion page views per month, and social media sites, from Facebook to Twitter, have 2.1 trillion hits (page views). Hudson, Roth & Madden (2012) Facebook in particular has a great influence on tourists, as 76 percent of travellers post vacation photos on a social network and 40 percent post activity/attraction reviews. Over 90 percent of consumers (tourists) from all over the world say they trust recommendations from friends, only 48 percent of all the travellers who used social media to create travel plans, stuck with their original travel plans. Approximately 90 million American adults to plan travel during 2008 which was 76 percent of those Americans using it for planning leisure trips (USTA, 2009 as cited in Rosman & Stuhura, 2013). Fotis, Buhalis and Rossides (2012) studied social media and travel business among people from former Soviet republics and UK and stated that 78 percent of holiday trip tourists primarily used social media to share experience and photos with friends or other traveller of social media. Social media has a big influence on travel decisions, as 44 percent of respondents strongly agreed that reviews posted by travellers helped them about the initial decision of vacation destinations. This is followed by 37 percent online travel forums, 27 percent Facebook, 24 percent YouTube, 22 percent Pinterest. Nearly half of the respondents used social media to plan their vacation and over 50 percent are likely to download travel apps while planning their vacation before they go (O’Donnell, 2012). Social networking giant Facebook tops the chart when it comes to research and planning a trip. Facebook with share of 76 percent of people using social media platforms is way ahead of its competitors like Google+ (40%) and Twitter (21%) (Jashi, 2013). Those who use social media, 85 percent of said that interactions between users which include videos, comments and photographs have influenced their travel plans. Majority of the samples
PYC Nepal Journal of Management, 9(1), 2016/ Social Media Marketing in Nepal/ Sthapit & Khadka surveyed said that travel reviews and opinion of tourists on travel website and online communities influence their travel plans and decision (Jashi, 2013). Chung and Buhalis (2008) highlighted social media influence on US travellers, with more than half (52%) of travellers having changed their original plans after seeking their travel trip on different social media sites, and 55 percent ‘liked’ Facebook pages in connection with a vacation and 46 percent of travellers post hotel reviews after their trip. Khadka (2016) and Gauchan (2015) probed into use of social media in tour/travel and air ticket marketing in Nepal, respectively. Khadka (2016) found travel agencies’ use of SMSs target to give information to tourists mostly on product and price in Nepal. On the other hand, Gauchan (2015) discovered the rising popularity of use of social media like Facebook and Twitter in the business of travel agencies in Nepal, as more people booked different travel packages/products through social media and number of social media has increased in the remarkable number in the recent years. The study in Nepal identified lack of resources, ideas, language obstacles and electronic payments (credit cards) on SMSs as the key problems. Yet, this study did not cover the use of social media by travel intermediaries as well as specific response of customers to SMSs. Concluding Remarks Research works so far have largely covered the issues relating to the use of social media among travellers and its impact on travellers’ travel planning process. Yet, little or no research attention has been paid to the views of travel intermediaries and customers on the social media and their marketing aspects. Therefore, the present study seeks to address the research gap observed in these areas, more particularly in the context of social media marketing of travel intermediaries in Nepal.
4. Methodology and Approach A mixed approach consisting of the qualitative and quantitative designs has been adopted to attain the study objectives. Based on a descriptive and analytical research design, the study made use of both primary and secondary data. As the social media in question, the study chose the travel intermediaries’ sites on Facebook and Google+; as AET report (2013) as well as Monica (2013) and Jashi (2013) identified Facebook as one of the best places for a travel intermediary to start off the marketing action on any social media. The study made use of both primary surveys (through a self-administered questionnaire separately) and secondary data search from the social media. Using a convenience sampling technique, it chose 100 travel intermediaries from a ‘random draw of lottery’ from the list of intermediaries, which as per the Nepal Government’s MoCTCA (2013) number nearly 2,200 in the greater Thamel area, main tourism and travel business hub of Nepal. For primary data survey, it sampled 100 potential travel-service customers intercepted at the key travel intermediary offices. The survey was performed in three months time between March and May, 2016. Limitations of the Study The study suffers from a few limitations. It was conducted within a limited period of time and with limited resources; and secondary data were drawn from the travel intermediaries’ Facebook and Google+ sites only. On the other hand, the primary survey was based on a convenience sampling method, the non-probability sampling technique; and the survey was limited only to the
PYC Nepal Journal of Management, 9(1), 2016/ Social Media Marketing in Nepal/ Sthapit & Khadka Thamel area, the main tourism and travel business hub of Nepal. Likewise, only a limited number of analytical and statistical tools were used in analysing the data.
5. Data Analysis and Discussions In line with the study objectives, data have been analysed and discussed at three levels: use of online social media marketing by travel intermediaries, its influence on travel customers, and customer response to SMSs of travel intermediaries in Nepal. 5.1. Use of Online Social Media Marketing by Travel Intermediaries The use of social media in marketing activities of travel intermediaries has been measured in terms of the number of visitor-hits, price communication, types of social media and product categories in the following paragraphs: 5.1.1 Visitor Hits of Social Media Sites The online social media marketing by travel intermediaries has drawn substantial use from present and potential customers who would intend to learn about and make travel purchases from such agencies. Going by the hits (likes) by the visitors, it becomes clear that those travel intermediaries that have been operating their web-pages on social media (more particularly ‘Facebook’) for 5 years or more have received more users (maximum 89,953) than relatively newer ones, as presented in Table 1. It was discovered from the researchers’ study of social media sites of 100 travel intermediaries located in the greater Thamel area and its surrounding localities. Thus, there is also a first-mover advantage to the travel intermediaries taking the earlier lead in operating their social media marketing programmes online. Table 1: Visitor Hits of Social Media Sites of Travel Intermediaries Hits and/or Likes Maximum Minimum
Years of Operation of Travel Intermediaries ≥5 Year ≥3 Year
