Hospitality Consumer Behavior and Insight

This document discusses the factors influencing consumer behavior in the hospitality industry, including cultural, social, and psychological factors. It also explores the influence of technology on consumer behavior and the stages involved in customer decision-making. Additionally, it highlights the importance of customer mapping and compares B2B and B2C decision-making in the context of Rosewood Hotels.

HOSPITALITY
CONSUMER
BEHAVIOR AND
INSIGHT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 CULTURAL, SOCIAL AND PSYCHOLOGICAL FACTORS......................................3
P2 INFLUENCE OF TECHNOLOGY ON CONSUMER BEHAVIOR...............................4
LO 2.................................................................................................................................................5
P3 THE STAGES INVOLVED IN THE DECISION MAKING OF THE CUSTOMERS. .5
P4 THE IMPORTANCE OF CUSTOMER MAPPING........................................................6
LO 3.................................................................................................................................................7
P5 COMPARE AND CONTRACT DIFFERENT OF DECISION-MAKING IN CONTECT
WITH B2B AND B2C...........................................................................................................7
P6 DIFFERENT APPROACHES TO MARKET RESEARCH............................................8
LO 4.................................................................................................................................................9
P7 INFLUENCE OF MARKETERS IN THE DECISION-MAKING..................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behavior is analyzing the customers and there needs and wants from the
organization, companies or hospitality industry. There is a pattern which can be studied by the
companies so that the industries can work better and get more customers in the company.
Hospitality is one of the industry which depends on the customers and understanding the
behavior of the customers towards the company is really essential so that the hotel industry can
do well. The hotels which understand the customer's behavior will be able to make the customers
really happy and satisfied and that will result in loyal customers in the hotel. The services and
products which the hotel industry is providing the customers must be wonderful and the
customers should carry a positive impact of the hotel when they leave.
Rosewood London is a 5 star hotel which is divided into four blocks and is located at 252
High Holborn, London. The hotel has 262 rooms with 44 suits and 3 restaurants. The building
has 7 floors in total and the company's headquarter is in Hong Kong. Rosewood hotel opened in
2000 under the brand Marriott International and then the hotel was taken over by Rosewood and
started the hotel again on July 2013.
The report is going to cover the factors which influence in the customers to go to a hotel,
The trends which are coming in which influence the hotel industry, decision-making, marketers
to map a path and different research and methods used for understanding the decision-making.
MAIN BODY
LO 1
P1 CULTURAL, SOCIAL AND PSYCHOLOGICAL FACTORS
There are a lot of factors that influence a customer to select a hotel for their stay. The
customers get influenced by the social. Cultural, personal and psychological factors are some
factors which influence the customers in selecting the type of hotel they want to go to (Gursoy,
D., 2019).
Cultural factor
There are a set of belief and culture that the customers have faith in and that will
influence the customers in selecting the property for their stay. There is a particular ideology of
the culture the customers believe in and that will affect the behavior of the customer (Xiang,
Magnini and Fesenmaier, 2015). Rosewood is one of those hotel chains which respects all the

individuals beliefs and culture in the hotel, and they market the products of the hotel after
understanding the culture they believe in. Rosewood makes sure that they are treating all the
customers in the hotel equally and are respecting there culture within the hotel boundaries. Be
the customer from a middle or lower caste, but they all have paid the same price for the room, so
they all will be treated equally, and they will make the customers have a pleasant stay.
Social factor
All the customers are related to one another so the company can make the customers get a
good stay in their hotel so that they can spread a word of mouth for the company. Rosewood is a
company which keeps their customers satisfied with the services they are providing and that will
make the company get more customers for the future reference (Altinay and Taheri, 2019). There
is a difference between each customer who comes in the hotel and the understanding and
analyzing of that factor is really important because it is only then that the company can get in
changes and improve the company. There are different social factors which are wanted by the
customers of the company and the company must make sure that the wants and needs of the
customers are getting fulfilled.
Psychological factor
There are a few factors of the customers psychologically which are the income,
occupation, social class and etc are the factors which affect the hotel for getting the customers in
the hotel. Rosewood hotel makes sure that they are not making the customers think about there
status in the society and provide discounts so that the customers who are not being able to afford
a comfortable and pleasant stay in the city they can come and stay, and they all will be given the
equal services, and they will be treated good by the employees of the hotel. There is a certain
type of psychological need and expectation in the customer which they have from a hotel and
Rosewood makes sure that the customer gets everything they need from the hotels side.
P2 INFLUENCE OF TECHNOLOGY ON CONSUMER BEHAVIOR
There are some major changes which are taking place in the hotel industry and that is
influencing the consumer behavior (Ustrov, Valverde and Ryan, 2016). There has been a lot of
surveys which show that the customers are getting attracted to hotels which are providing the
customers with the latest technologies and the hotels which are not providing the customers with
the latest technologies they are not getting a good number of customers coming in the hotel.
Rosewood has promised to provide the customers which the latest technologies so that the

company will be able to grow rapidly and will be able to make a huge profit as soon as possible.
The hotel of this company is promising and living up to their promises they are making to the
customers. Digitization has made the working of the hotels and the customers so much easier that
the hotels are making a lot of profit since they have come online and the customers are getting
what they want. Digital platform is a very good platform for the company because Rosewood
takes its feedback's from this, and they actually work on their feedback's so that they can
improve the services and the customers feel more satisfied. The easier the process for a customer
for checking in a hotel or checking out the more they prefer that kind of hotel because
digitization has made it so simple for the people (Olya, Bagheri and Tümer, 2019). Finding and
booking rooms for the customers is so much easier because Rosewood has its own app and the
app is so easy to be used for the customers. Digitization has also made the targeting of the
customers so much easier because the customers can find everything online and the company
Rosewood is promoting itself online because the customers are mostly using the online apps for
traveling and booking there rooms so that a third party is not involved in the process. There are a
lot of technology services which are provided to the customers who are putting up in the hotel of
Rosewood like free Wi-Fi, television, etc, which are a basic need for the customers to feel
satisfied and happy for the services of the hotel. It is the hotels which can make a lot in the
country because there are a lot of customers which are coming in the country and the economy of
the country is being dependent on that factor.
LO 2
P3 THE STAGES INVOLVED IN THE DECISION MAKING OF THE CUSTOMERS
There are a lot of stages through decision-making which a customer has to go through
and that is analyzed by the hotel accordingly. These decisions are taken so that the customer
feels satisfied and happy with the services of the hotel. There are a lot of stages which influence
the decision of the customers and those are as follows.
Evaluating wants of the consumers
This stage involves the evaluation of the customers wants and needs because that is the
main factor the company is bothered about. The customers should leave the company completely
satisfied and they should have such an impression of the hotel that will make them want to come
again and again. Rosewood makes sure that the company should not face discrimination of any

sort which are race, culture, gender, etc. Rosewood takes feedback's from all its customers so
that they can improve the quality of the hotel (Chathoth and et.al., 2016).
Post usage of products and services
The customers evaluate the services and products which are provided by the company as
the company is providing more facilities with the amount the customers have paid and if the
services and products are good and more than the customers had expected then the feedback of
the hotel will automatically be good. Word of mouth is the greatest way of Rosewood to expand
itself and promote itself. Rosewood has had good feedback's from its customers and the company
is doing very well.
Accumulating data of customers
The hotel must understand that the customers which are coming in the hotel are giving
there part of the income in the hotel so the hotel must understand giving the customers as many
facilities as possible in the budget they have given the hotel. Digitization is a good way of getting
the feedback's from the customers and the company, Rosewood will be able to grow faster.
Finding the best option
The income the customers are paying in for the room and services the customers will find
the best options in the locality they are going to (Varkaris and Neuhofer, 2017). Rosewood
makes sure that they are giving proper discounts to the people who need them and make sure that
they are getting best of facilities with the amount they have paid for the hotel. The hotel focuses
on the quality of the hotel and services are very good therefore they have loyal customers, and
they do not need to promote themselves because the have a strong customer base.
P4 THE IMPORTANCE OF CUSTOMER MAPPING
It is managers of the rose wood hotels used the following path to understand the customer
decision-making in the hotel:
 Selling Point
The selling point become a major factor in the understanding the consumer's decision-making in
the organization. The hotel rosewood's was having the one of the kindest property which was
offering all the comforts and benefits to the customers staying in the hotel. There was a point of
differentiation by which the rosewood hotels made their own identity. The hotel was giving the
luxurious rooms at low cost as compared to their competitors which was the reason of attraction

of customers in the hotel. The hotel was also building the customer's life line values and it was
connecting the different properties in the hotel chains.
 Competitors of the Hotel
The consumers of the rosewood were having many competition like peninsula, Hyott, Marriott,
Mandarm Oriental, Aman Tokyo etc (Gibson and O’Rawe, 2018). All these hotels were
providing almost same offers and benefits to the consumers, but the maximum customers
remained loyal with the rosewood because of the strong brand image and trust on the hospitality
of the hotel. The marketers were observing all the offerings of the competitors in the market and
after the proper analysis they were suggesting the improvements the rosewood should make in
the customer offerings.
 Consumer's behavior
The consumer's behavior towards the rosewood's was a bit emotional. The reason was that the
hotel was giving the values to the culture and religions of the consumers who were visiting the
hotel. The continuous change made in the hotel rosewood according to the tastes and preferences
of the customers made the business more profitable for the hotel. The customer's trust and
loyalty towards the hotel has influenced other people also to move towards the rosewood hotels.
The marketers work is to create more believe of the customers in the services provided by the
hotel are the best they can get in any hotel situated in London, U.K (Xie and So, 2018).
LO 3
P5 COMPARE AND CONTRACT DIFFERENT OF DECISION-MAKING IN CONTECT
WITH B2B AND B2C
Comparison between B 2 C and B 2 B in the Rosewood Hotels
B 2 C B 2 B
The B 2 C businesses in the rosewood was
done by offering the best services and offers to
the customers.
The B 2 B business in the rosewood was
helping a lot in the maintaining the facilities
provided by the hotel (Sasmita and Mohd Suki,
2015).
This business is done directly by the rosewood
hotels to their customers. There was no
The involvement of outside businesses helps a
lot in making the services of the rosewood

involvement of any third party in serving the
customers with best offers.
more effective and highly liked by the
customers living in the hotel.
In this the hotels were providing all the
services with the best quality and reasonable
rates to the consumers. There is no commission
of any third party or company in this B 2 C
businesses,
At the time of booking, the customers mentions
all of their requirements from the hotel during
their stay. This was done by visiting the
various hotel booking sites which were doing
their own business by taking the
responsibilities of booking rooms and events in
the other hotel industries.
The rooms are provided to the customers at the
minimum cost possible by the hotel. The
consumers can easily do bargaining and
change their preferences according to their
needs.
These business are the online business in
which the customers can do the booking by
visiting those sites directly.
By this the consumers have a direct interaction
with the employees of the rosewood hotels and
if they want any changes in the services or
have any suggestions for the improvement in
the services, they can directly tell to the
management of the hotel.
By this the other business who were relying on
the hotel industry were also earning the profit
in the market.
The feedback's and suggestion given directly
by the customers to the hotel industry are more
effective.
The feedback's given on the other hotel
booking sites are less effective.
P6 DIFFERENT APPROACHES TO MARKET RESEARCH
There are a lot of different methods through which the companies can research more
about there business so that the company can know more about there products and services. This
will help the company improve there products and services for the customers so tat the customers
are satisfied with the company (Björk and Kauppinen-Räisänen, 2015).
Primary Data

This is when there is a direct collection of data from the original source and it is very
trustworthy for the company because this will tell the truth of the company. This data which is
collected is really helpful for the company's which are having a hotel hospitality background
because this will tell the exact importance of the company like the location, rooms, number of
hotels, guest history, rates of the rooms, etc. Primary data is important because it will let the
customers know where the hotel is situated and if there are visiting sites nearby of the hotel. The
hotel industry provides both types of data because it is very important to get in customers
because the industry is completely dependent on the customers so the secondary and primary
data will let the customers know about the offers and discounts which are being provided by the
hotel (Martin, Rosenbaum and Ham, 2015). Feedback's is very important because the hotel can
come to know its weak points, and then they can work over them. Email and direct connection
from the hotel with the customer is very important because the company will need loyal
customers who would love to travel and have a comfortable stay with Rosewood.
Secondary Data
This data is collected from a third party who has collected the primary data from the
original source. This is an easier way of collecting data because it is available online and the
company's will not have to travel much to find out the data themselves. The reviews, feedback's
and information about the hotel is all available online and making the customers know the actual
truth of the hotel and it is very important for the hotel industry to make the most from that
because they will have to have positive feedback's from the customers so that they can improve
(Gao, Mattila and Lee, 2016). Rosewood is a hotel which gives discounts and offers to the
customers so that they can afford the rooms in the hotel because it is a five star hotel chain and
will be very expensive for those who are spending there income on this chain of hotels.
LO 4
P7 INFLUENCE OF MARKETERS IN THE DECISION-MAKING
There is a way or a lifestyle which the customers who are coming to the hotel have and
the hotel must make sure that they are having that lifestyle within the hotel too. The marketer of
the hotel change must know the ways how the hotel chain can attract more customers in their
hotel. There are a lot of customers who are still not friendly with booking rooms online and that
is another challenge for the marketer (Zaltman, Olson and Forr, 2015). The marketer must make

sure that the customers who are no friendly with booking rooms online have the right way of
booking room with Rosewood. Rosewood is a five star hotel chain and is most occupied and
people who are checking in without booking the rooms before can have difficulties but
Rosewood is making sure that the customers are having a pleasant stay with the hotel.
The four major steps or strategies which the marketer has to work on are price, place,
promotion and product. The prices of the hotel are high but the marketer of Rosewood knows
how they can attract more customers and make them feel comfortable with the prices the hotel is
putting for the rooms which are getting booked. Services and products of the hotel is excellent
and the hotel is getting the prices meet the expectations of the customers meet too. The location
of Rosewood is also good enough and the hotel is making a lot because of its location because it
is in Convent Garden which is a great attraction for the customers. Promotions of the hotel is
done very well by sending personal mail to the customers who have stayed with the hotel before
and to attract more customers the hotel has put discounts and offers so that the company can get
more customers. The products and services the hotel are using are meeting up with the customers
lifestyles and the customers are not complaining about it because they are being served well and
the products are very good for the customers.
The check in and check out's of the hotel is also very friendly and the customers are
feeling more comfortable with that. There is a service for the customers all the time and
whenever the guests needs to ask for a service they can. Services like free newspapers, television
with sports and cartoon for the children and Wi-Fi is on the house which is very much
appreciated by the guests of the hotel (Gursoy, 2018).
CONCLUSION
Rosewood hotel, London is a very good choice of the guests to stay in and the customers
have to pay a high price but it is completely worth it because the services and the products the
hotel is giving is also very nice. There is a provision of the services all the time which is a very
good idea of the hotel and the atmosphere of the hotel is very much appropriated by the guests
because it makes them comfortable and friendly with the staff so that they do not feel that they
have come away from their house. The methods and strategies the hotel is using are also
excellent because it is making the company grow so much.

REFERENCES
Books and Journals
Altinay, L. and Taheri, B., 2019. Emerging themes and theories in the sharing economy: a
critical note for hospitality and tourism. International Journal of Contemporary
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and tourism services: A critical review. International Journal of Contemporary
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environment-friendly initiatives in hospitality research. International Journal of
Hospitality Management. 54. pp.107-115.
Gibson, A. and O’Rawe, M., 2018. Virtual reality as a travel promotional tool: Insights from a
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Martin, D., Rosenbaum, M. and Ham, S., 2015. Marketing tourism and hospitality products
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Olya, H.G., Bagheri, P. and Tümer, M., 2019. Decoding behavioural responses of green hotel
guests: A deeper insight into the application of the theory of planned
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Sasmita, J. and Mohd Suki, N., 2015. Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management. 43(3). pp.276-292.
Ustrov, Y., Valverde, M. and Ryan, G., 2016. Insights into emotional contagion and its effects at
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Varkaris, E. and Neuhofer, B., 2017. The influence of social media on the consumers’ hotel
decision journey. Journal of Hospitality and Tourism Technology. 8(1). pp.101-118.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Xie, K.L. and So, K.K.F., 2018. The effects of reviewer expertise on future reputation,
popularity, and financial performance of hotels: Insights from data-analytics. Journal of
Hospitality & Tourism Research. 42(8). pp.1187-1209.
Zaltman, G., Olson, J. and Forr, J., 2015. Toward a new marketing science for hospitality
managers. Cornell Hospitality Quarterly. 56(4). pp.337-344.