Position of Influence: A Comparative Investigation of Social Influencers and Currency Fluctuations

Abstract

How do social influencers impact the hospitality industry? Which has more influence on a traveler's decision-making process, social influencers or currency fluctuations? This paper attempts to answer these and other questions by studying them through the lens of organizational brokerage. The paper postulates influencers as primary providers of intermediary services, linking the hospitality industry to target consumers. When the RMB is devalued compared to the dollar, more people will want to travel to China from the US. So more people will be looking at Chinese content on social media when this happens. Therefore, influencers are paid based on engagement. They will attempt to portray more Chinese content on their pages. businesses rely on influencers, individuals who have established connections among target markets, to promote their businesses. Consequently, particularly in the hospitality industry, the influencers play the role of brokers by linking the consumers to the businesses. When the local currency depreciates, the influencers become more resourceful to big hotels. Their role shifts drastically when the local currency appreciates, where they become more fundamental to the local Airbnb than big hotels. This paper concludes through economic research that the social influencers have more impact on the traveler’s decision when compared to currency fluctuations.