Examining the effect of social media marketing in tourism

Abstract

A growing number of travel agencies in the tourism industry use social media to promote their services and reach target customers despite some doubt regarding the effectiveness of these tools. Nevertheless, few researchers have examined the effects of social media marketing, and especially its effects on sales. Therefore, our study aims to assess the impact of social media on the purchase of tourism products. Additionally, to explore whether the influence of social media marketing changes among different types of tourism products, we develop a typology of tourism products that classifies tourism along the following five dimensions: (1) the structure of tourism, (2) the involvement of tourists, (3) the scope of tourism, (4) the price of products, and (5) the length of a tour. All tours with Facebook campaigns conducted by our case company from February 1, 2012 to November 30, 2013 are selected as our target tourism products. Moreover, we choose certain products without Facebook campaigns that were available for purchase during the same time period as a control group. We obtain the sales data from the case company and calculate the sales of each product before and after the Facebook campaigns. We then apply a difference-in-difference approach, comparing the average changes in sales performance of the treatment group with those of the control group. The results show that Facebook campaign activities have a positive impact on purchases of tourism products. Furthermore, sales are more likely to increase when a travel agency promotes products that are less structured, limited in scope, relatively lower-priced, or require less tourist involvement. © 2015 Copyright held by the owner/author(s). Publication rights licensed to ACM.