Journal of Tourism & Hospitality

Journal of Tourism & Hospitality
Open Access

ISSN: 2167-0269

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Research Article - (2013) Volume 2, Issue 2

Determinants And Effects Of Applying Electronic Marketing In Alexandria Hotels: Current Status And Future Trends

Islam Salem1*, Osman Ahmed El-Said1 and Mohammad Nabil2
1Faculty of Tourism and Hotels, Alexandria University, Egypt
2Hotel Studies Department, Faculty of Tourism and Hotels, Alexandria University, Egypt
*Corresponding Author: Islam Salem, Hotel Management Department, Faculty of Tourism & Hotels, Alexandria University, Egypt, Tel: +2 012 2794 50 59 Email:

Abstract

Alexandria is an international tourist destination. Due to its limited natural attractions and growing regional competition, Alexandrian hotels? operators need to adopt and implement creative marketing tools. This study explores the current and future adoption and role of electronic marketing (E-marketing) strategies and e-distribution channels in Alexandrian hotels. Despite the exponential growth of E-marketing, little is still known about its application and effectiveness in Alexandrian hotels. This exploratory study aims to fill in this gap. Field study revealed that most e-marketing procedures have not been applied, application of Awareness/General-Policy-related procedures helps better apply procedures in other phases, and that 5-star hotels apply E-marketing partially better than 4-star hotels. Further managers? opinions and thoughts have been sought, concerning the overall context and perceived barriers of applying E-marketing, both current and future aspects. Finally, best E-marketing practices are identified, and a simplified strategy for developing an effective E-marketing mix is proposed

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Keywords: E-Marketing, Transactions

Introduction

However Electronic Marketing (E-Marketing) is still a relatively new concept, particularly for organizations operating in developing countries that have limited resources, bad infrastructure, and strong competition and cannot afford to make unwise investments or wrong decisions. Therefore, there is a need to have a much clearer understanding of E-marketing implementation, problems as well as its opportunities for such organizations; and how these technologies can be used to carry out the organization marketing activities and processes in a more effective and efficient way than reliance on traditional marketing practices [1]. He added that E-marketing adoption and implementation by Egyptian tourism organizations can be a very important tool in solving the current problems associated with Egyptian tourism industry as a result of the political unrest not only in Egypt but also in the Middle East. The adoption and implementation of E-marketing can help Egyptian tourism organizations in finding leverage points that can help such organizations in overcoming its current problems.

Alexandria city is one of the very important tourism destinations in Egypt. Hospitality organizations in Alexandria are growing in numbers, while the market demand is not growing in the same trend. Therefore the gap between market demand and supply in Alexandrian market will increase. Therefore, this paper presents findings of a survey of hotels in Alexandria. It examines the adoption of E-marketing by hotels. Issues such as awareness and general policy of E-marketing activities; pre-sale information and communication with online customers; various ways of transactions; post-sale communication and enhancing E-image and E-relationship; and general image of application of E-marketing were addressed and are reported on. In addition, a review of the literature on E-marketing tools adoption and usage reveals that most of the extant studies limit themselves to only understanding the current nature of E-marketing tools adoption and usage without providing insights into the future usage patterns of E-marketing applications, which is an equally critical issue to help hotels make informed decisions.

Literature Review

E-marketing in the tourism and hospitality industry

The internet had become an integral part of the tourism information system, affecting final purchase decisions by acting as a portal of information for tourism businesses. It is concluded by Litvin and others [2] that those hospitality establishments who opted not to use the World Wide Web were likely losing an important competitive advantage. Therefore, the rapid adoption of Internet marketing by hotels has yielded myriad studies of hospitality Internet adoption and its impact on hotel operation [3]. Many studies discussed the current stand of and potential role of internet in marketing and promoting tourism destinations [4-8]. This progress is also apparent in studies further considering hotel website dimensions and attributes and their effect on the perceptions of online browsers and purchasers, such as those of [9-11]. Moreover, other studies intended to analyze the usage of E-marketing applications in the tourism and hospitality industry [12].

Hanson suggests that E-marketing can be seen as a distinction between three stages: the publishing stage (one way communication), the database and forms stage (simple interaction including e-commerce), and the personalization stage (complex interaction) [13]. While, Brodie et al. defined E-marketing as using the internet and other interactive technologies to create and mediate dialogue between the firm and identified customers, clients or patients.E-marketing is characterized as being reliant on technology to enable interactivity as it involves establishing an electronic dialogue that provides individual customers access to information, and in turn, the use of interactive technologies also allows these customers to provide information to the business [14]. Moreover, Park and Gretzel stated that E-marketing includes all electronic data and applications used for the marketing of a firm’s products, such as customer profile and marketing mix information, and their strategic use to increase sales or reduce marketing costs [7]. Recently, El-Gohary mentioned that E-marketing can be viewed as a new philosophy and a modern business practice involved with marketing of goods, services, information and ideas via the Internet and other electronic means [1].

E-marketing tools have many advantages for tourism and hospitality organizations as well as other organizations such as;providing hospitality operators with an unprecedented ability to communicate directly with customers and the ability for all businesses of all sizes to build competitive advantage, allowing hospitality firms to reach out to potential clients in the quickest and most effective way, increasing worldwide visibility and access enable, facilitate, sustain and reward interaction between consumers and hoteliers, customers can search and purchase their preferred products and services without any geographical or time constraints, customers can easily arrange for their own tailor-made products or services, enables the suppliers to better understand their customers’ needs, suppliers can enjoy the benefits of lower distribution costs, a fairer competitive environment for businesses with different backgrounds and it creates a level playing field for hotels where size is no longer apparent better revenues [14-22].

There are many E-marketing tools for tourism and hospitality properties. For example, website marketing is particularly useful for dealing with intangible nature of the hotel service, and to gain a competitive advantage [23]. For tourism organizations, the website content allows them to engage customers’ interest and participation, to capture information about their preferences, and to use that information to provide personalized services [24]. Scaglione et al. analyzed revenue per available room before and after hotels adopted websites. They found that website utilization related positively to hotel performance [25]. Merono-Cerdan and Soto-Acosta evaluated 228 Spanish firms and found a positive relationship between external web content and firm performance [26]. It is essential to consider promoting and publicizing websites to the public, and using various means to make certain that the visitors come back to their websites and eventually turn the website viewers into actual visitors [27]. Mills and others concluded that it is wise for hotel and tourism companies to ensure that those with visual impairments, an unlimited number of potential consumers, are easily able to use their websites [28]. Berger and others [29] have found that the greatest source of dissatisfaction for customers in technologybased [e.g., Web-based] service encounters is technology failure. Many studies focus on measuring key factors that address customers’ needs, wants, and expectations toward a Web site [7].

There are many other forms of E-marketing utilized in the field of hospitality. For example, e-mail marketing is a form of direct marketing that can render the best ROI of any E-marketing tactic. According to Pavlov et al. , e-mail marketing campaigns produce approximately twice the return on investment of the other main forms of online marketing such as web banners and online directory adverts [30]. In fact, gaining explicit permission to send email marketing to a person is a prerequisite for successful email marketing, however all emails sent by an organization and the individuals in that organization can be seen as marketing opportunities [31]. Additionally, Google, Yahoo! and Microsoft’s Live are all well known international search engines. Google is by far the leading player in the market. A comScore study of worldwide search engine activity, release in October 2007, showed that Google has just over 60% of the global search engine market share. Blogs, wikis, social bookmarks, tag clouds are different means of social media which can be used either to create or share content, web sites can attract links, all helping to enhance search engine rankings [32]. With twice as many SMS users worldwide than email, SMS should be a no-brainer for marketers. However, mobile phone users have proved reluctant to hand over their phone number for marketing messages, perhaps fearing a similar deluge of spam for which email has such a poor reputation [33].

The current study will depend on the work of Sarner (2007) in order to evaluate the current implementation of E-marketing activities in Alexandrian hotels. As Sarner concluded E-marketing has a great impact on different stages of the customer buying process as follows; 1) Need and want recognition stage. Based on Sarner’s work, this is the start of the customer buying process that deals with awareness and general policy. Here, E-marketing opportunities, such as addressable branding, advertising functionality, having an effective e-business plan, and developing a plan for e-promoting can help establish awareness and need. Banner ads, sponsorships, interstitials and others are E-marketing activities that can expose customers to products and services, 2) Information search. Once customers establish a need or want, they seek information about that product or service. Contextual E-marketing techniques are becoming extremely useful as a mechanism to seek information and have become a routine step in the customer-buying process, 3) Evaluation. This is the point in the buying process where customers look at the choices available, including the opportunity cost of not choosing the next-best alternative, 4) Purchase. The last step in the buying process also has E-marketing opportunity. Transactional E-marketing activities, such as gift registries, e-mail marketing, the availability of online booking and online dialogue functionality, help customers to final purchase or even additional purchases. This can result in a relevant cross-sell, providing a positive experience for the customer and an incremental sale for the company [34]

Research Objectives

This empirical study aims to achieve the following objectives:

1. Studying and discussing the objectives, characteristics, components, and approaches of applying E-marketing.

2. Deciding upon the level of application of E-marketing procedures in Alexandrian hotels.

3. Investigating the relationship between the application of Awareness/General-Policy-related procedures, and the procedures of other phases.

4. Investigating current business-related concerns and obstacles that Alexandrian hotels’ managers undergo when applying E-marketing, both currently and in the future.

5. Examining the difference between Alexandrian hotels’ grade; four versus five-star hotels, regarding the application of E-marketing and its relevant determinants.

6. Developing practical implications and recommendations concerning the most fruitful implementation of E-marketing; identifying areas of improvement and future trends, both achieving marketing-related and financial success for individual hotels, and attaining mutual welfare for the Alexandrian hospitality industry.

Research Questions

Research objectives can be reformulated in the development and test of the following research questions:

1. What is the current status, and relevant implications, of the level of application of E-marketing procedures in Alexandrian hotels, across the following phases:

a. Awareness and general policy?

b. Pre-sale information and communication?

c. Customer transaction?

d. Post-sale communication and enhancing e-image and e-relationships?

2. What is the relationship between the application of Awareness/ General-Policy-related procedures, and the procedures of other phases?

3. Is there a significant variance between hotels with different grade concerning the level of application of E-marketing procedures?

4. What are the current and future business-related concerns and obstacles that Alexandrian hotels’ managers undergo when applying E-marketing?

Research Methodology

After demonstrating, throughout the literature review, different principles and procedures of E-marketing in hotels, it is vital to supplement the theoretical part by conducting the field study.

The topic of this research has not been studied before, and the aspects and dimensions of interest have not been scrutinized. Consequently, this study has been determined to be exploratory; namely, investigating current status and future trends of applying E-marketing in Alexandrian hotels, in the hope to be a launching point for more comprehensive, in-depth studies.

This exploratory aim has been attainable by inquiring about E-marketing procedures, derived from the literature review. It was noted that, for E-marketing procedures to be effectively applied, those procedures are better categorized into the aforementioned four main areas or phases. In addition, managers’ further opinions and thoughts have been scrutinized through addressing open-ended question concerning the overall context and perceived barriers of applying E-marketing, both current and future aspects. Moreover, in order to gain the whole image, it was also derived that the profile of the hotel is believed to have relationship to the application of E-marketing procedures. The profile characteristics that were seemed to be the most effective are the hotel grade; four versus five-star hotels; the hotel affiliation, independently versus chain-managed, and the number of rooms.

Population characteristics and data collection techniques

The population frame is all the four and five-star hotels in Alexandria. They were chosen since they, unlike lower grades, enjoy a mostly above average occupancy percentage and high business volumes, in addition to having several varieties of sales outlets. This increases the probability that these hotels might be in need for an efficient E-marketing plan, or at least a definite set of procedures. This assures that the efforts done throughout the field study will not be in vain, and will produce meaningful results in response to research questions.

Data have been collected using the survey research, in which a questionnaire has been used to collect data. Data was collected from hotel marketing, sales, or reservation managers. Respondents were assured for the anonymity and confidentiality of the research.

The questionnaire was composed into several sections covering the following areas:

1. The general policy and awareness of E-marketing activities and practices,

2. Pre-sale information and communication,

3. Transaction activities,

4. Post-sale communication and enhancing e-image and e-relationship,

5. Providing information regarding the general image of application of E-marketing, and

6. Providing information regarding hotels’ profile.

Moreover, the questionnaire was personally administered in order to collect responses within a short period of time. Any managers’ inquiries regarding any question or statement were also made clear on the spot. Using this way, it was easy to establish rapport with managers, and to introduce the research topic and stimulate them to provide honest answers. Questionnaires were distributed in January 2011. The questionnaire took, in average, 30 minutes to be filled in.

Discussion and Implication of Field Study Results

Hotels’ profile characteristics

A descriptive analysis of hotels’ profile characteristics is provided (Table 1).

Profile Characteristic Grade Affiliation Number of Rooms
5-star 4-star Chain Independent Up to 100 More than 100
Number of Hotels 8 8 13 3 8 8

Table 1: Hotels’ Profile Characteristics.

Initial analysis of data indicated that the number of 5-star hotels, and hotels with up-to-100-rooms capacity, are equal to 4-star hotels, and hotels with more-than-100-rooms capacity, respectively. Additional analysis indicated that all 5-star hotels were chain-affiliated hotels, and 87.5 % of 5-star hotels [7 out of 8 hotels] operate a capacity of more than 100 rooms.

Discussion and implications of descriptive analysis

Responding to the first research question, descriptive analysis is based on calculating and studying the values of the percentages for managers’ responses. Results and discussion will proceed in order of the four main phases under which E-marketing procedures are categorized (Table 2 presents procedures along with responses, both in frequencies and percentages). For sake of simplicity, procedures are referred to as “P.”, and their numbering is based on the questionnaire.

Procedures Notapplied Less applied Most applied
  Freq. % Freq. % Freq. %
1-Awareness & General Policy 101 45.1 41 18.3 82 36.6
1.1 Having a comprehensive e-business plan. 4 25.0 3 18.8 9 56.2
1.2 Defining, measuring, and managing E-marketing concepts, such as e-quality, e-satisfaction, and e-loyalty. 2 12.4 7 43.8 7 43.8
1.3 Checking the websites of competitive hotels to compare. 6 37.5 2 12.5 8 50
1.4 Predetermined plan or steps to target leisure, corporate, and group markets:            
1.4.1 Pre-sale 7 43.8 2 12.4 7 43.8
1.4.2 Post-sale 9 56.3 2 12.4 5 31.3
1.5 Identifying the top referral sources, such as internet companies, GDSs, search engines, distribution service providers…etc. 7 43.8 1 6.2 8 50
1.6 Developing a plan for e-promoting a specific product or service 9 56.2 3 18.8 4 25
1.7 Investigating customers’ opinions through checking online consumer-generated reviews concerning the hotel or the city, such as Trip Advisor, E-Opinion Sites, Yahoo Travel, Hotel Chatter, Expedia, and local travel blogs. 4 25 3 18.8 9 56.2
1.8 Checking relevant keywords for search engines. 0 0 5 31.3 11 68.7
1.9 Counter for the number of visitors for the site and for each link or section (outlets, rates…) to evaluate the popularity and visibility of the site and its content. 9 56.2 1 6.3 6 37.5
1.10 Counters for number of clicks of banner ads, and other forms of web existence. 13 81.2 1 6.3 2 12.5
1.11 Calculating look-to-book ratio (Number of visitors minus number of actual sales transactions). 14 87.5 0 0 2 12.5
1.12 Calculating ratio of responses to promotional emails and SMSs. 8 50 7 43.7 1 6.3
1.13 Tracking actual e-sales transactions, and their ratio versus other sales. 9 56.2 4 25 3 18.8
2-Pre-Sale Information and Communication 244 58.7 33 7.9 139 33.4
2.1 Registering with search engines/directories. 11 68.7 1 6.3 4 25
2.2 Utilizing online channels, such as Blogs, GDS sites, priceline.com, hotels.com, Travelocity, Hotwire, Expedia, Site59, Google earth, Google maps and yahoo
maps, and Travel Sites to gain presence on the internet.
8 50 1 6.3 7 43.7
2.3 Mentioning the website and its services in advertising tools. 1 6.3 1 6.3 14 87.4
Please check the used tools: □ Magazines□ Newspapers    □ TV commercials    □ Billboards
□ Public gatherings, such as flights   □ Social media, such as Facebook and twitter
           
2.4 Sending promotional and news E-mails through websites with mailing lists, such as www.liszt.com, www.neosoft.com/internet, and
www.postmasterdirect.com.
15 93.7 0 0 1 6.3
2.4.1 If yes, tracking responses. 15 93.7 1 6.3 0 0
2.5 Sending promotional and news E-mails for your website’s mailing list (through an email sign-up form). 11 68.7 0 0 5 31.3
2.5.1 If yes, tracking responses. 15 93.7 1 6.3 0 0
2.6 Sending random SMS messages. 11 68.7 1 6.3 4 25
2.7 Linking the hotel's site to regional/city/area web pages. 13 81.2 1 6.3 2 12.5
2.8 The availability of product-related information online
.
1 6.3 0 0 15 93.7
2.9 Maintaining an online calendar of current events held at the hotel. 10 62.4 3 18.8 3 18.8
2.10 Posting some kind of tip of the day, promoting a certain outlet, or even a certain menu item in an outlet
.
13 81.2 3 18.8 0 0
2.11 The availability of pricing information online. 2 12.5 0 0 14 87.5
2.12 The dynamic customization of prices based on either personal information or on demand patterns. 6 37.4 1 6.3 9 56.3
2.13 Having web-based specials, packages, and marketing initiatives (such as for honeymooners) addressing the needs of groups, corporate and leisure. 7 43.8 3 18.8 6 37.4
2.14 Bundling local attractions, things to do and activities as part of online hotel packages. 12 75 1 6.3 3 18.7
2.15 Designing online up-selling opportunities.   16 100 0 0 0 0
2.16 Applying customer e-loyalty programs.   6 37.4 5 31.3 5 31.3
2.17 Having community functions like website-based chat rooms. 16 100 0 0 0 0
2.18 Providing online maps and driving directions. 5 31.3 1 6.3 10 62.4
2.19 Providing online virtual tours and videos of the hotel's facilities. 13 81.2 0 0 3 18.8
2.20 FAQs 11 68.7 0 0 5 31.3
2.21 Information available for both individual customers and travel agents. 7 43.8 2 12.4 7 43.8
2.22 Providing sufficient, catchy information about the hotel’s services and outlets. 1 6.3 7 43.7 8 50
2.23 Ensuring that the site is accessible for visual-impaired persons. 16 100 0 0 0 0
2.24 Regular updating of the website. 2 12.5 0 0 14 87.5
3-Transaction 6 12.5 0 0 42 87.5
3.1 The availability of e-mail request for bookings, and inquiries. 1 6.3 0 0 15 93.7
3.2 The availability of online booking. 2 12.5 0 0 14 87.5
3.3 The availability of secured online payment. 3 18.8 0 0 13 81.2
4- Post-Sale Communication and Enhancing E-image and E-relationship 125 60.1 26 12.5 57 27.4
4.1 Ensuring customers’ e-needs are met and maintained. 12 75 1 6.3 3 18.7
4.2 Promoting the use of website services in guests’ conversations with Front Office, and public relations employees. 11 68.7 4 25 1 6.3
4.3 Including Web address and its available services in organization’s stationary, such as tent cards, flyers, bills…etc. 0 0 3 18.8 13 81.2
4.4 Using e-mail marketing to build relationships with existing customers. 9 56.2 2 12.5 5 31.3
4.4.1 Taking guests' permission before sending. 14 87.5 0 0 2 12.5
4.4.2 Highlighting special offers/best buys.   11 68.7 1 6.3 4 25
4.4.3 Emailing hotel news.   8 50 5 31.2 3 18.8
4.4.4 Including website in email signatures.   9 56.3 0 0 7 43.7
4.4.5 Tracking responses (similar to e-greeting cards). 11 68.7 2 12.5 3 18.8
4.5 Personalization/customization of email according to customers' needs (known through their history). 10 62.4 3 18.8 3 18.8
4.6 Collecting guests’ mobile phone numbers for promotional SMS 3 18.8 4 25 9 56.2
4.6.1 Taking guests' permission before sending. 15 93.7 0 0 1 6.3
4.6.2 Tracking responses   12 75 1 6.3 3 18.7

Table 2: Frequencies for the Research Variables.

Awareness and general policy: Managers’ responses have shown that nearly half (45.1%) of the procedures reflecting and assuring that an E-marketing plan exists, and the awareness of its importance, are not applied.

No plan exists to target leisure, corporate, and group markets “P.1.4”, despite that many studies affirmed the interactive role of website in marketing [6,12]. Top referral sources have not been identified “P.1.5”, thereby losing a remarkable opportunity of visibility, as determined by the studies of comScore and MacManus [32,35]. No plans have been developed for e-promoting specific products/services “P.1.6”, thus losing a valuable opportunity for exposing customers to more varied products and services, and the subsequent lost opportunity of customers responding and interacting with a specific brand in real time [34].

Ignoring to investigate online consumer-generated reviews “P.1.7” wastes the opportunity to track electronic word of mouth that helps customers in the evaluation process toward their purchasing goal [34]. There is a significant relationship between online consumer reviews and business performance of hotels [36] . Investigating those reviews helps build relationships with existing and potential customers [31]. Although it is essential to ascertain that hotel’s website visitors revisit them, and to eventually turn website visits into purchases [26], three related procedures were not correspondingly applied “1.9, 1.10 and 1.11”.Moreover, only one hotel calculates the ratio of responses to promotional emails and SMSs “P.1.12”, despite their apparent importance among E-marketing tactics [31], since it helps customers final purchase or even additional purchases [34] and the potential of producing approximately twice the ROI of the other main forms of online marketing such as web banners, online directory adverts, and emails [30,33].

Actual e-sales and their ratio versus other sales have not been tracked “P.1.13”, although it was found that from 2002 to 2004, Internet-based applications increased its share of spending while traditional media advertising and sales promotion shares of spending had slight declines, these trends are likely to continue, and that e-marketing provides increased sales opportunities [37].

This implies that other applied E-marketing procedures within this phase:

1. are dictated by hotels’ owners; for independently managed hotels, or provided centrally by hotel chains, for chain-affiliated hotels, with no or limited opportunity for input by E-marketing practitioners,

2. are spontaneous procedures, that are not always performed under the umbrella of a comprehensive plan or a general policy, and

3. reflect managers’ desire to utilize all available marketing and publicity tools, including E-marketing, often without a thorough image of how to best utilize such a tool and relevant procedures and how to be positioned among the hotel’s marketing mix.

Pre-sale information and communication: Careful analysis implied that more than half (58.7%) of the procedures related to disseminating pre-sale information and e-existence are not applied, whereas one-third (33.4%) of procedures were reported as being most applied. Scrutinizing results demonstrated that hotels may be satisfied by limiting their e-existence efforts to having a website displaying catchy information about their products, services, prices, and offers “Procedures 2.3, 2.8, 2.11, 2.18, 2.22, and 2.24”, in addition to utilizing online channels to gain presence on the web. Remainder procedures have been not likely prioritized.

This result coincides with many studies. Marriott hotels reported that in 2002 over 75 percent of their online bookings were done through their website and that they have invested over $1 million in site improvements [38]. Scaglione et al. found that website utilization related positively to hotel performance [25]. Merono-Cerdan and Soto- Acosta evaluated 228 Spanish firms and found a positive relationship between web content and firm performance [26]. Websites help hotels bypass intermediaries, sell their services and products directly to the customer, reduce costs of fees and commissions by shifting transactions from intermediaries to the hotels’ own facilities through direct connection and websites, and gain some call center productivity when callers have already checked information on the web [6,29,39].

However, website-interactivity-related procedures were generally not applied; “Procedures 2.7, 2.9, 2.10, 2.15and 2.17”, despite its role in creating and mediating dialogue between the hotel and identified customers [6,14]. Other website-enriching practices were also ignored; “Procedures2.19, 2.20, and 2.23”.Mills and others concluded that it is wise for hotel and tourism companies to ensure that those with visual impairments, an unlimited number of potential consumers, are easily able to use their websites [28].

E-customization-related procedures “2.12, 2.13 and 2.21” were also somehow ignored; that is, customizing prices, products and services, packages for various targeted market groups.Moreover, more concern is required to ensure customers’ e-loyalty and that visitors return to websites“P.2.16”.Encouraging customers to manage their loyalty program points on the website is one way that hotels do this [38]. It is essential to make certain that visitors return to websites and eventually turn the visit into actual purchases [39]

In addition, ignoring to register with search engines/directories “P.2.1” wastes a remarkable opportunity of visibility, since a significant part of the internet population usually browse search engines, blogs, wikis, social bookmarks, and tag clouds [32,35]. Other procedures were ignored, though their valuable role in increasing e-existence utilizing emails and SMSs; “Procedures2.4, 2.4.1, 2.5, 2.5.1, and 2.6”.

This is mostly attributable to the following rationale:

1. Being satisfied with the current business volume.

2. Lack of awareness of the importance and promising role of E-marketing and its significant contribution to enhancing the business volume, which was also apparent in the analysis of the first phase.

3. Lack of awareness of other e-existence tools than the website.

4. Unwillingness to incur additional costs of other e-existence tools, as a consequence of lack of awareness.

5. Managers at independent hotels reported that hotels’ owners are reluctant to change. Only hesitant attempts may exist responding to significant drops in occupancy.

6. Some managers reported that most of their guests are corporate guests and travel agents, who usually contact and deal with the hotel personally, rather than browsing a website. However, such hotels seldom enjoy full occupancy, with a potential opportunity for increasing occupancy through E-marketing.

Transaction: Most procedures pertinent to the ultimate transaction; that is, actual online booking and secured payment, have been most applied (87.5%). The availability of such services represents the least to be presented on a hotel website, and the eventual outcome of browsing the website; that is, the booking decision, or at least seriously considering it as an option.

However, although an apparently small proportion (12.5%) of transaction-related procedures is not applied, it is a crucial symptom of a drawback in such hotels, since those practices are the least to be provided as an indication of interest, if any, in E-marketing.

Post-sale communication and enhancing e-image and e-relationship: Further procedures, practices, and efforts should be exerted to enhance the e-image and extend the e-relationship with inhouse guests, so that the E-marketing efforts do not come to an end once an e-transaction takes place, either through the website, or in respond to emails or SMSs. Those procedures come in the context of supporting the e-culture in minds of guests already familiar with it, and raising the awareness of others utilizing traditional contact and booking methods.

In line with previous results and relevant implications, it was not surprising to have nearly two-third (60.1%) of those procedures not applied. E-mail-marketing-related procedures have not also been performed. Email personalization is part of the e-marketing success factors [7]. Hotels, hotel chains, and intermediaries increasingly retain information about their guests to enhance service and improve online marketing and sales efforts [38]. Generally, email marketing renders the best ROI of any E-marketing tactic. Gaining permission to send emails is a prerequisite for successful email marketing [31]. E-mail marketing help customers to final purchase or even additional purchases [34].

However, a reasonable proportion representing around one-forth (27.4%) of those procedures are reported to be most applied, which is a further confirmation of the previous discussion; stating the partial awareness of E-marketing down to the last phase of guest contact cycle, and that performing E-marketing procedures is often spontaneous.

Discussion and implications of inferential analysis

This section discusses and presents the implication of the results of analyzing the relationship between the application of Awareness/ General-Policy-related procedures, and the procedures of other phases. Correlation was tested utilizing Spearman Nonparametric Correlation Coefficient. Results, (Table 3), prove a significant correlation.

Variables Application of Pre-sale Transaction Post-sale
Awareness & General Policy Correlation Coefficient .689** .653** .769**
Significance 003 .006 .000

**. Correlation is significant at the 0.01 level (2-tailed).

Table 3: Summary of the Inferential Analysis Results.

Therefore, the application of Awareness/General-Policy-related procedures helps better apply e-marketing procedures in other phases. This means that the higher the level of application of Awareness/ General-Policy-related procedures, the higher will be the level of application of e-marketing procedures in other phases.

These results run in the same context of previous results; that is, the level of application of e-marketing procedures is moderate in general, across all phases. Furthermore, these results support the major impact of Awareness/General-Policy-related procedures, as is apparent in the review of literature, and the discussion presented in the part 6.2.1. Those procedures are of a preliminary nature, and thus provide the necessary basis for applying other procedures, such as “P.1.1”, “P.1.2”, “P.1.4.1”, “P.1.4.2”, “P.1.8”, “P.1.9”, and “P.1,10”.

In addition, these procedures’ role is requisite in keeping e-marketing practitioners efficiently aware and alert of being keen on effective application of many other procedures, such as “P.1.5”; “P.1.7”, “P.1.11”, “P.1.12”, and “P.1.13”.

Discussion and implications of contingency analysis

This section shows contingency analysis discussion concerning the relationship between the hotel grade; four versus five-star hotels, and the level of application of E-marketing procedures. Pearson’s Chi Square was used to determine the significance of the relationship, where a relationship is significant when the “two-sided asymptotic significance” is greater than 0.05. In addition, the Symmetric measure “contingency coefficient” was used to indicate the strength of the relationship if it exists, where 0 indicates “no relationship” and 1 indicates a perfect relationship.

Table 4 shows E-marketing procedures that were found to bear a significant relationship, along with the values of medians of application in chain and independent hotels, two-sided asymptotic significance, and contingency coefficient (Table 4).

  Procedure MEDIAN5-star 4-star Two-sided asymptotic significance Contingency Coefficient
1.3 Checking the websites of competitive hotels to compare. 2 0 .005 .629
1.4.1 Predetermined plan or steps to target leisure, corporate, and group markets: Pre-sale 2 0 .002 .663
1.4.2 Predetermined plan or steps to target leisure, corporate, and group markets: Post-sale 1.5 0 .037 .540
1.5 Identifying the top referral sources, such as internet companies, GDSs…etc   2 0 .037 .540
1.8 Checking relevant keywords for search engines.   2 1 .007 .559
2.13 Having web-based packages, and marketing initiatives (such as for honeymooners) addressing needs of groups, corporate and leisure. 1.5 0 .027 .558
2.21 Information available for both individual customers and travel agents. 2 0 .028 .556
4.4 Using e-mail marketing to build relationships with existing customers. 1.5 0 .037 .540
4.4.2 Highlighting special offers/best buys.   1.5 0 .026 .559
4.4.3 Emailing hotel news. 1 0 .007 .617
4.4.4 Including website in email signatures. 2 0 .012 .533
4.6 Collecting guests’ mobile phone numbers for promotional SMS. 1.5 2 .029 .555

Table 4: Summary of the Inferential Analysis Results.

Through reviewing the medians, it is clearly noted that those procedures are most frequently applied in 5-star hotels than in 4-star hotels. Additional analysis indicated that all 5-star hotels were chainaffiliated hotels. It is important to note that chain hotels have the privilege of their chain’s accumulated, worldwide experience. They are usually vigilant to recruit the best qualification in the labor market, have their own compact policies and standard operating procedures, own necessary funds, and are thus able to better apply e-marketing procedures. Reviewing listed procedures further supports this inference. They are precise procedures that reveals keen follow-up and in-depth interest in e-marketing, which is not usually obtainable unless in 5-star, chain-affiliated hotels.

In addition, 87.5 % of 5-star hotels (7 out of 8 hotels) operate a capacity of more than 100 rooms. Higher capacity represents another motive for those hotels to work on more reaching, market-penetrating marketing initiatives, with a potential opportunity for increasing occupancy through E-marketing.

Discussion and implication of the general image of e-marketing application

Responding to the forth research question, managers’ further opinions and thoughts have been scrutinized through addressing openended question concerning the overall context and perceived barriers of applying E-marketing, both current and future aspects.

The most effective tool of E-marketing currently applied in your hotel: Managers’ responses reinforced the previously deduced implications. That is, most managers reported that the most effective tools of E-marketing currently applied in their hotels are just the website, and online channels, such as the GDSs, while a few managers spotted promotional SMSs and emails.

E-marketing tools managers would like to be applied: Moreover, reported as potential e-marketing tools, managers have chosen utilizing online channels, promotional SMSs and emails, and using the guest history database as a launching point for customized and personalized e-promotional campaigns.

This coincides with the values of the percentages for managers’ responses shown in the attached questionnaire form. Utilizing promotional SMSs and emails, in addition to relevant procedures, were the least applied among E-marketing practices. It was also deduced that hotels are satisfied with limited their E-marketing efforts to having a website, and utilizing online channels, such as GDSs.

Deciding upon E-marketing vs. traditional marketing as being currently more effective: Eleven, out of sixteen, managers admitted that traditional marketing tools and techniques are currently more effective for their hotels. Surprisingly, only three of them believed that expanding E-marketing can benefit their operations, emphasizing the lack of awareness of its potential role.

Barriers preventing current; and future expansion of E-marketing application: Barriers were reported to be almost the same. They have been perceived to be lack of awareness of themselves, of owners of independently managed hotels, in addition to of some guests, particularly the segments of corporate business and travel agents, which were reported to prefer personal contact.

Recommendations

The findings of this research, when correlated to the review of literature, raised major recommendations that have to be directed to E-marketing practitioners, to further researching efforts, and to the academe. The following, step-by-step tips should help managers best apply E-marketing; (1) Having a comprehensive e-business plan, involving the following; identifying the internet market by researching what people are searching for in Alexandria on the internet, either locally, regionally, or internationally, using offline and online methodologies to determine which factors are bringing visitors to Alexandria, following up on customers’ e-satisfaction and deciding on the most appropriate techniques of dissemination of E-marketingrelated information; (2) Designing a high-quality, rich e-content that addresses the needs of your customer, such as unique specials and packages, event-related getaways, seasonal promotions, bundling local attractions and activities as part of hotel packages, and launching other one-to-one marketing initiatives to provide unique value and personalization, whether it is the brand site, the hotel website, GDS, or even SMS and email marketing campaigns; (3) Supporting the hotels’ e-existence and powerful presence, whereby the hotel is listed wherever customers are going and looking by using online channels, exploiting creative e-advertising tools such as the social media (Facebook and twitter) and initiating promotional campaigns through email and SMSs; (4) Supporting hotels’ websites with attractive, sufficient information and graphics about the hotel’s services and outlets; (5) Tracking the results of all E-marketing efforts and campaigns in order to evaluate the feasibility of E-marketing efforts and costs incurred; (6) Regular checking of the status of the other two parties in business; competitors and guests; Finally, (7) Independent hotels’ owners and top management are advised to take the extra mile, conducting a thorough feasibility study of the potential of E-marketing, and the corresponding costs to be incurred.

Additionally, this research can well be used to derive many ideas for possible future researches. More research is needed to test more variables, obstacles, and profile characteristics. Further, the present research has drawn responses from managers. Further research attempts should aim at investigating those variables, and others, surveying hotel guests. Researchers are encouraged to attempt to develop a standardized instrument for measuring, and determining interrelated variables, concerning the application of E-marketing. Finally, further research endeavors should be directed to investigating the application of E-marketing in Alexandrian two and three-star hotels, in response to the growing international trend of preferring economic lodging.

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Citation: Salem IEB, El-Said OA, Nabil M (2013) Determinants and Effects of Applying Electronic Marketing in Alexandria Hotels: Current Status and Future Trends. J Tourism Hospit 2:112.

Copyright: © 2013 Salem IEB, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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