Social Media Crisis Management in the Hospitality Industry: Strategies for Maintaining Brand Reputation and Customer Trust

Abstract

Social media has become a multivalent tool for business, offering different functions from marketing, customer relationship management, online booking, recruitment. However, social media also presents significant risks, as crises that arise online can be difficult to control and potentially damaging to brand reputation. This study investigates the strategic use of social media for crisis management within the hospitality industry, highlighting its critical role in maintaining stakeholder trust and brand reputation. The primary objective is to explore crisis management strategies employed by hospitality businesses on social media platforms and assess their effectiveness in protecting brand reputation and customer trust. A comprehensive literature review and case studies of social media crises in the hospitality industry form the basis of this research, supported by semi-structured interviews with three industry professionals. The study examines common types of crises faced by hospitality businesses, the role of social media in crisis communication, and the factors influencing the effectiveness of these strategies. Theoretical frameworks such as Situational Crisis Communication Theory (SCCT) and Image Restoration Theory (IRT) were applied to understand how traditional crisis management strategies adapt to social media's dynamics. The research explores common social media crises faced by hospitality businesses, their impacts on brand reputation, and the factors influencing effective crisis management. Key findings reveal that effective crisis management on social media requires rapid, transparent, and proactive communication. Honesty and preemptive engagement were found critical in mitigating misinformation and preventing crisis escalation. Further, the importance of social media monitoring and employee training in crisis response was highlighted. Insights suggest that businesses leveraging social media as a communication tool dur ing crises can transform potentially negative experiences into opportunities for reinforcing customer loyalty and brand strength. This thesis was conducted from February 2024 to November 2024.