Co-Creation in Hospitality Industry - a Case Study on the Drivers for Traveler-Generated Content [FINAL]

CO-CREATION IN HOSPITALITY INDU
A CASE STUDY ON THE DRIVERS FOR TRAVELER-
GENERATED CONTENT
CAMILA DOS ANJOS FERRAZ
MASTERS IN INTERNATIONAL MANAGEMENT

agenda
MOTIVATION OF THE RESEARCH
THEORETICAL FRAMEWORK
METHODOLOGY
ANALYSIS OF FINDINGS
CONCLUSIONS
ACKNOWLEDGEMENTS
CAMILA DOS ANJOS FERRAZ - MASTERS IN INTERNATIONAL MANAGEMENT
CO-CREATION IN HOSPITALITY INDUSTRY: A CASE STUDY ON THE DRIVERS FOR TRAVELER-GENERATED CONTENT

motivation
of the research
Purpose: analyze UGC in travel industry from
the perspective of the drivers that motivate co-
creation and delve deeper into the subject by
exploring user behavior on TripAdvisor.
What are the drivers for User-Generated Content among travelers?
Source:ComScoreMediaMetrix(July2015)
Academic relevance
- Enhance the literature in
such a contemporary
phenomenon
- Fill a gap on adherence
of local culture to UGC
- Analyse its applications
on hospitality industry
Managerial relevance
- Conversion Rates
- Hotel Load
- Operational Feedback
- Design marketing
strategies
“marketing-induced consumer-to-
consumer word of mouth generates
more than twice the sales of paid
advertising” (McKinsey)
Why TripAdvisor?
World’s largest travel
site in unique visitors and
UGC is in the core of its
business model

theoretical
framework
USER-GENERATED CONTENT IN TRAVEL INDUSTRY: DRIVERS FOR CO-CREATION IN TRIPADVISOR AMONG TRAVELERS FROM SÃO
Co-Creation and
UGC
Business and
Brand Impact
Online Travel
Industry

theoretical
framework
Co-Creation and
UGC
ongoing collaboration with customers,
employees, and other stakeholders
(Ramaswamy and Ozkan, 2014)
ways that users create and share
media with one another, with no
professionals anywhere in sight
(Shirky, 2008)
positive feedback (Shapiro and Varian, 1999) and network effect
“ever growing size” (Shao, 2008)
interdependence: consumption, participation and
production (Shao, 2008)
Word-of-mouth vs. e-word-of-mouth (Sharma, R. S., Morales-
Arroyo, M., and Pandey, T., 2012)
long tail (Anderson, 2008)
reverse costs of filtering and
publishing (Shirky, 2008)

theoretical
framework
Business and
Brand Impact
impact of reviews in the reservation of
independent restaurants “despite the
large impact of Yelp on revenue for
independent restaurants; the impact is
statistically insignificant and close to zero
for chains.”
(Luca, 2011)
lesser known hotels take better advantage of
the reviews
(Vermeulen and Seegers, 2009)
“online WOM equity”: message content
(positive or negative), author's profile
identity and publication environment
(such as a blog) impact this equity
(Bughin, Doogan and Vetvik, 2010)
10% on hotel rating, +5%
hotel bookings for an OTA
(Ye, Law, Gu and Chen, 2009)
+1 star on independent
restaurant rating, +9% revenue
(Luca, 2011)
follow their customers’ perception
and feelings towards their brand
in real time. Abundance of “free”
content.
(McWilliam, 2000)

theoretical
framework
Online Travel
Industry
Among all sectors, highest %
of online purchases and
researches in Brazil
(Consumer Barometer)
TripAdvisor has more than
60M reviews worldwide
30%
92%
Share of independent hotels:

case study
methodology
- Theory review;
- Desk research;
- Business Data;
- TA Executive
Interview;
- Survey
Design.
CASE STUDY
METHODOLOGY
- Contemporary
event in a
context where
behaviors can’t
be manipulated;
- Multiple sources
of data;
- Importance of
selecting the
right case: TA
relevance.
LIMITATIONSQUANTITATIVE
FACTOR &
CLUSTER ANALYSIS
DATA
COLLECTION
AND ANALYSIS
QUALITATIVE
DATA
COLLECTION
AND ANALYSIS
- Collection of
Survey
Responses;
- Description of
the universe;
- Factor and
Cluster
Analysis;
- Outcomes of
Progress;
- Conclusions.
AND
DELIMITATION
S
- Leisure vs.
business
traveler;
- Population vs.
sample;
- Geographical
target;
- Focus on
production,
despite
consumption
and
participation
relevance.

case study
methodology
FACTOR &
CLUSTER ANALYSIS
18 STATEMENTS
7 FACTORS
69% OF THE INFORMATION

case study
methodology
FACTOR &
CLUSTER ANALYSIS
18 STATEMENTS
7 FACTORS
4 CLUSTERS

case study
methodology
FACTOR &
CLUSTER ANALYSIS
What a Stud!
Absent-
minded
New Recruits
Business
Advocate
- genuinely pleased to
help and give
something back to the
community;
- likely to share more
good experiences;
- savvy travelers.
- knows the value of his
opinions towards
official information;
- lower community
engagement requires
incentives or reminders
to share.
- content consumers with low
community engagement;
- incentives are a driver as a
mean to travel more often;
- not yet savvy travelers and
don’t see production as self-
expression.
- feedback approach;
- shares positive experiences as
a way to reward and negative
ones to punish establishments;
- responds to incentives,
demand in-person or through
email;
- less self-motivated given the
lower content consumption.
18 STATEMENTS
7 FACTORS
4 CLUSTERS

case study
methodology
FACTOR &
CLUSTER ANALYSIS
What a Stud!
Absent-
minded
New Recruits
Business
Advocate
- genuinely pleased to
help and give
something back to the
community;
- likely to share more
good experiences;
- savvy travelers.
social function (joy in
community engagement)
self-expression
self-promotion (desire to show
destinations visited)
Knowledge function driver
(being aware that this
information can be helpful to
others)
Utilitarian fuction (rewards)
Social functions (community
engagement)
change perception function
(since their goal is to make
other users see the brand in
another way)
18 STATEMENTS
7 FACTORS
4 CLUSTERS
motivations for
UGC observed
by
Christodoulides,
Jevons &
Bonhomme
(2012)

A model of the influence of online
brand communities on
relationships and purchase
(Adjei, Noble, Noble, 2010)
Applied to the case
study
Communication Settling
Expertise Product Complexity
Online C2C
Communication
Quality
Uncertainty
Reduction
Valence of
Information
Exchanged
Customer
Purchase
Behavior
amount of options, lack of
standardization, the self (and others’)
exposure towards an experience, and
expectations management
bedges and gamification as leverages
for TA. For the user, it’s not how much
one travel but how engaged with UGC
and content.
independent content makes it
unbiased and trustworthy. Brands are
mean to use it as a communication
channel and feedback, not sponsors.
Relevance measured by recency of
the review and who wrote it (e.g.
Facebook friends)
TA plays a major goal of reducing
uncertainty towards hotel selection.
It can only happen through user
production of content. If the brand
actively is part of this
communication uncertainty is even
more reduced.
Offline referrals and post trip
feedback
Path to decision:
- Stimulus (WOM, magazines)
- Zero moment of truth (TA,
content)
- Price comparison (TA, agent, etc)
- Decision
- Trip

conclusions
From consumers
to producers
Trustworthiness Incentives
Executive interview
73% of respondents consume,
but don’t produce
Offline Word-of-mouth
Online Algorithm to deliver
results with higher relevance
Partnerships
Loyalty Programs
FINALCONSIDERATIONS
Chicken-egg
conundrumBroad content to acquire more
users, more users to produce
broader content
Industry Adherence
Hotel long tail structure, more
options less known, exposure
to experiences
Interdependence
Across production,
consumption and participation.
Though production is not for
everyone.
Technology
Together with marketing
knowledge, plays a critical role
on executing strategies.

THANK YOU!
CAMILA FERRAZ
MASTERS IN INTERNATIONAL MANAGEMENT - FGV EAESP
Co-Creation in Hospitality Industry: a Case Study on the Drivers for Traveler-Generated
CO-CREATION IN HOSPITALITY INDUSTRY:
A CASE STUDY ON THE DRIVERS FOR TRAVELER-GENERATED CONTENT

Co-Creation in Hospitality Industry - a Case Study on the Drivers for Traveler-Generated Content [FINAL]

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