Hospitality Consumer Behaviour and Insight

This report discusses the factors influencing consumer behaviour in the hospitality industry, the impact of digital technology on consumer trends, and the stages of the consumer decision-making journey. It also compares the B2B and B2C decision-making process in the hospitality industry. The report is based on Hilton Hotels and Resorts, a multinational brand of full-service hotels and resorts.

Hospitality
Consumer
Behaviour
and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 : Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes with a hospitality context.....................................................1
P2 : Explore how consumer trends are changing due to the impact of digital technology.........2
P3 : Examine the stages of the consumer decision- making journey and map a path to the
purchasing for a given hospitality service...................................................................................3
P4 : Explore why it is important for marketers to map a path to purchase and understand
consumer decision- making in the hospitality sector..................................................................4
P5 : Compare and contrast the key differences of the hospitality decision- making process in
the context of B2C and B2B, using specific hospitality examples.............................................6
P6 : Evaluate the different approaches to market research and methods of research used for
understanding the decision making process................................................................................7
P7 : Evaluate how marketers can influence the different stages of hospitality decision-making
process giving specific hospitality examples..............................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10

INTRODUCTION
Consumer behaviour refers to evaluating and analysing the interest of consumers and
their activities related to the purchase of goods and services. It is very important for an
organisation to analyse the consumer behaviour and make changes according to the needs and
requirements of the customers. It is basically the interpretation which are used by the marketers
to gain deeper knowledge about the thinking of the consumer, how consumer thinks while
buying the product or service of an organisation (Dixit , Lee and Loo, 2019). It is the best way
to know about size of a particular market, competitors and customers by an organisation. It
involves different stages of consumer decision making process. Mapping the consumer journey
helps in removing the barriers in the market for an organisation. This report is based on Hilton
Hotels and Resorts which is a multi national brand of full service hotels and resorts. Company
provides luxurious stays to both leisure and business travellers. Company was founded by
Conrad Hilton in 1919. Today company has more than 584 hotels and resorts with a presence in
94 countries. In 2020, Hilton was ranked as number one in Fortune 100 companies (Carter and
Yeo , 2018).
MAIN BODY
P1 : Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes with a hospitality context
There are different factors which influences the buying patterns or behaviour of a
customer or consumer. Some of the factors are discussed below -
 Cultural factors – These factors refers to set of values and perception of a group of
people. These factors have a strong effect on the buying behaviour of consumers. It
includes different factors such as culture, subculture, social class etc. which highly
influences the behaviour of an consumer. In the context of Hilton hotels company,
company targets the customers which belongs to business class or the customers seeking
for luxurious stays as the company provides luxurious and premium stays to their
customers.
 Social factors – These are the factors related to people or society which influences the
buying behaviour of a consumer. It includes different factors like family, friends, status
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etc. Family plays an important role in influencing the buying behaviour of consumers. A
person acquires the behaviour of family buying things from his childhood (Hossain and
et. al., 2020). In case of Hilton hotels company, the main customers of the company are
high class status people or status seeking people as people around them also prefers these
luxury hotels due to which they also acquires the same thing.
 Personal factors – These are the personal factors which influence the behaviour of the
consumer. These factors varies depending upon business to business. It includes age,
income, occupation, lifestyle etc. For example a person with average income will not
seek luxury things, they will choose normal things which are in their budget. In context
of Hilton hotels group, people with good income and occupation are the perfect target
audience for the company. Lifestyle of an consumer also heavily influences the choices
of the consumers.
 Psychological factors – These factors are very difficult to measure but have a huge
impact on the buying behaviour of a consumer. Some of the main factors are motivation,
perception, learning and attitude and beliefs. For example if a person have the perception
that it is the waste of money to stay at luxury hotels then he will not go for brands like
Hilton hotels even the belong from a rich family. These factors play a vital role in
changing the patterns of the consumer while buying a product or service.
P2 : Explore how consumer trends are changing due to the impact of digital technology
There is a lot of innovation is happening in the hospitality industry to maintain efficiency
and provide a smooth and luxurious experience to the customers. Trends refers to change or
development in process or product or service. A lot of advance technology and processes are
introduced in this industry. Hilton company has also introduced many advanced technology for
the seamless and comfortable stay of their customers. Some of the changed trends due to digital
technology are discussed below -
 Customer review from different applications – There are different applications and
websites such as Google Maps through which customers can see reviews of different
people. People can check reviews and rating of Hilton hotels by just sitting at home. Also
customers can check different services which are provided by the hotels to compare.
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 Mobile based payments applications – It is one of the most convenient and easy option
for customers to book and pay through mobile by different banking applications. It
eliminates the problem of carrying cash or cards. Customers can easily pay through
mobile applications at the time of check out or book hotels in advance. Hilton hotels
provide the facility of paying online through mobile banking at the time of checkout (Lee
and et. al., 2021).
 Branding and marketing through social media – In today's times, many companies are
using social media platforms for marketing of their products and services. The main perk
of this method is that they can reach a large number of audience and far places. It is not
only used for marketing but also it helps in branding of their company. Hilton hotels use
many social media platforms for the branding of their hotels and promotion of their deals
and discounts given for their customers.
 Usage of facilities through mobile – Nowadays hotels are providing different facilities
such as booking, self check - in and check – out, room customisation etc. Hilton hotels
company provides an great experience to their customers by providing different facilities.
Customers can book hotels and resort through mobile and check in to the rooms without
key which creates an smooth experience without the fear of loosing key or card.
Customers of Hilton hotel can customize their rooms with mobile phone. Also they can
avail the different services such as spa, sauna etc. through mobile phones.
P3 : Examine the stages of the consumer decision- making journey and map a path to the
purchasing for a given hospitality service.
Decision making process of a consumer involves different stages which are discussed
below in the context of Hilton hotels -
 Problem recognition: It is the initial stage which includes the basic needs of the
customers and it plays an important role in the organisation. This is the basic need of the
individual to have the major consideration for responding for making the needful change.
Hilton hotels should focus on satisfying their customers by providing best services to
them which helps the company in customer retention (Marcon and et. al., 2022).
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 Information search: After the first stage and analysing the problem, the guest or
customer do a proper research on the different hotels and different services provided by
them and location of the hotel which should be according to the need of the customer.
After doing the research guest decide whether to book the hotel or not and decide the
timing which are suitable for guest.
 Alternatives evaluation: After making the choice, managers do checking and modify
the required things in products and services according to the need of the guest so guest
can get a smooth and luxurious experience at the property. The main aim of this stage is
to give better services to the guest according to the needs and wants of them.
 Purchase decision: This the stage where customer reaches to a conclusion of finalising
hotel with the help of research and which fit according to the requirements of the
customers. A company can attract more customers through the positive reviews about the
company. In context of the Hilton hotel company, company has a great record of
excellent customer experience which lead to positive customer reviews which also
attracts more customers.
 Post-purchase evaluation: This is the last stage which involves post reflection of both
the parties customer as well as seller. Customer's needs can be satisfied through giving
after sales services to them by seller. In case of Hilton hotels, company provides after
sales services by collecting the real feedback of the customers to improve and eliminate
the problems faced by the guests. Also company provides many deals and discounts to
their customers and provide the relevant details to them by different platforms such as
email, contact number, social media etc.
P4 : Explore why it is important for marketers to map a path to purchase and understand
consumer decision- making in the hospitality sector.
Mapping of path to purchase a commodity or service by a customer refers to the
visualization of the experience of the customers. This activity is basically related to visualising
the business from the point of view of the customer by an organisation. This helps the
organisation to know about the key and vital points regarding the business and also helps the
business owners or mangers to find out problems which are faced by the customers while
selecting or buying a product or service. After finding out problems, marketers can find out
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solutions for the them and implement them so they can attract more and more customers. In the
context of Hilton hotels, the company can map the journey of customer experience by
identification of problems and create a perfect solution for solving it. This assist the organization
to find out numerous opportunities as mapping allows them to communicate with diverse
customers so that it can tap new markets in most efficient and effective manner (Martinho, V.J.
and et. al., 2022). In the context of Hilton hotels, the organisation can map the journey of
customer experience and identifies different problem and solutions for it. It allows company to
communicate with different and diverse customers which helps the company to enter into new
markets in the most effective way.
Mapping Journey:
Identifying all touchpoints:
This stage refers to the listing of all touch points which leads attract the customers to buy
the product or service of an organisation. In context of Hilton company, there are multiple
touchpoints to attract customers such as social media branding, world wide name, luxurious
experience etc.
Choosing target customers:
It refers to the choosing and targeting the potential customers for the business and
construct a suitable framework for it. Hilton company can target status seeking people and new
start up companies to gather information related to the market and customer purchasing patterns.
Understanding customer goals:
For achieving success and business growth company should understand about the goals
of the customers and what they want from their perspective. In context of Hilton hotels, company
should regularly review their touchpoints so that customer expectations can be identified in
proper manner.
Visualizing and mapping out consumer flow of interaction:
Visualising and mapping refers to the process where marketers choose their targeted
customers. In this process company's marketing team draws a road map by visualising final goal
that is to increase the purchase in the market. Marketing team at Hilton hotel maps its targetted
customers to increase the purchase orders for its services being offered in the market.
Prioritise touchpoints:
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In this process, marketers at Hilton hotels analyse the important touchpoints where they
find customers more active and excited to buy new rendered services. Afterwards, an efficient
strategy and customer attraction plan is created to influence the customer's purchasing decisions
by adopting essential touch points.
Review and update:
At this stage, the customer improves their services by making the map for future and
review them in order to decide whether it need further improvements or not. Thus, it is crucial
for mapping the customer journey so that decision-making journey of consumer can be improved
in best manner (Nguyen and Johnson, 2020).
P5 : Compare and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B, using specific hospitality examples.
B2B stands for Business to Business which means dealing directly with business by an
organisation. On the other side B2C stands for Business to Customer which means selling of
goods and services to customers by a firm. The key differences between B2B and B2C in the
context of Hilton hotel company are as follows -
Basis B2C B2B
Pricing models Hilton hotels follows
differentiated pricing strategy
which is based upon the rooms
and services which are chosen
by the guest during the stay.
For these type of customers
Hilton company provides huge
discounts and offers as there
are more number of persons
who want to stay and avail the
services offered by these
hotels.
Customer service Hilton company have their
customer care section which
helps the customers in solving
their problem or booking
hotels.
In this, the company engages
with the wholesalers for the
purpose of contacting with
them for orders.
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Buying process Customers can book their stay
immediately through online
booking or going physically to
the hotel or through phone
call.
Due to a large number of
guests it takes longer time to
prepare all the services for the
guests and should be informed
early to the hotel.
Checkout structure Hilton company has
introduced self checkout
option for their customers.
Checkout procedure for this
segment generally takes more
time as there are lot guests and
it takes time to check
everything for the hotel staff.
Advertisement strategy In this, the business are
undertakes various marketing
strategies such as newspaper
advertisement, advertisement
by using social media
platforms and other marketing
channels.
In this, the business entity is
attracted only if the firm met
the conditions related to price
of services, features as well as
benefit.
P6 : Evaluate the different approaches to market research and methods of research used for
understanding the decision making process
There are different methods of research which are used by the marketers to understand
the process of decision making which runs in the mind of the customers. It helps the company to
know about the trends which are running in the market. For example, self check in and self check
out are new trends in hotel industry which are adopted by different hotels such as Hilton. It will
help the Hilton company to identifying the patterns which are used by customers while making
the decision to choose best available option.
For conducting a research there are two types of researches which are primary research
and secondary research. In Primary research, data is extracted for the first time and collected
personally by an individual. Some of the ways for collecting data are follows -
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 Survey – It refers to the online form which are sent on the emails of the the different
persons. These forms are generally in the form of multiple choice questions which are
done by the individuals and sent back to the investigator. If the form is lengthy then
persons will loose their interest. Hilton company can also provide questionnaire to their
customers and ask them what can be improved and what difficulties are faced by them
(Smith, 2019).
 Interview – It is basically the talk between two persons which are interviewer and
interviewee. This can be done through telephone or fave to face meeting. In this process
researcher gets more clear answer and gets to know about the decision making process of
the customer. Hilton company can directly ask their customers about the problems and
improvements which needs to be done while they are checking out and can improve their
services (Santos and et. al., 2021).
 Observation – There is no interaction between the researcher and the respondent here as
the answers are noticed by trained observers or cameras in reactions and behaviour of the
subject. The hotel observe with the expressions and behaviour of the customers after
staying in there in the way to extract the genuine thoughts about their services.
Secondary research refers to the research which are made on the basis of already extracted or
existing data. Some examples of this are journals, books newspapers etc.
P7 : Evaluate how marketers can influence the different stages of hospitality decision-making
process giving specific hospitality examples
The hospitality decision making process and fluctuating power of them are divided into
these stages as explained below -
 Need recognition – It is necessary to understand the customer's needs and requirements
for an organisation (Swarbrooke, 2022). Hotels should consider all the necessary
requirements which helps in satisfying the customers. Hotels should identify their faults
and try to solve it for bringing an efficiency to the staff.
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 Information Search – Customers should go through hotel policies and rules and match
according to their needs to avoid mess created at the time of stay. People who want to
stay in Hilton hotels should check rules and regulations before making their mind to book
hotels.
 Option Evaluation – after the doing necessary research, visitors evaluate their options
which are providing best services. Hilton hotels provide best and luxury services to their
customers and evaluate their services regularly to make necessary changes in their
services (Szmigin and Piacentini, 2018).
 Purchase decision – After the evaluation of the chosen option, person should book hotels
according to their suitable timings of check in and check out, preferred location etc.
 Post purchase evaluation – This process is for checking out and getting a feedback for
reviewing the hotel's facilities and management (Testa, Iovino and Iraldo, 2020).
CONCLUSION
It can be concluded from the above report that consumer behaviour is an important aspect
which should be known by the organisations to gather knowledge and to know about the
perspective of customers. There are various factors present which influences the decision making
of a consumer such as personal, social and psychological factors. Also there is huge impact of
digital technology in changing the trends of the hospitality or hotel industry. It also changes the
buying behaviour of the consumer. After that consumer buying journey involves various stages
which needs to be analysed by companies to stay ahead of the competition and it helps the hotel
companies to make best decision in order to provide better services.
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References:
Books and Journals
Carter, S. and Yeo, A.C.M., 2018. Internet-enabled collective intelligence as a precursor and
predictor of consumer behaviour. Economics, Management and Financial
Markets, 13(4), p.11.
Dixit, S.K., Lee, K.H. and Loo, P.T., 2019. Consumer behavior in hospitality and
tourism. Journal of Global Scholars of Marketing Science, 29(2), pp.151-161.
Hossain, M.S. and et. al., 2020. Factors influencing customer citizenship behaviour in the
hospitality industry. Annals of Leisure Research, pp.1-24.
Lee, C.K. and et. al., 2021. Consumer Behaviour and Social Entrepreneurship: The Case of
South Korea. Journal of Social Entrepreneurship, pp.1-20.
Marcon, A. and et. al., 2022. Exploring green product attributes and their effect on consumer
behaviour: A systematic review. Sustainable Production and Consumption.
Martinho, V.J. and et. al., 2022. Determinants of economic motivations for food choice: Insights
for the understanding of consumer behaviour. International Journal of Food Sciences
and Nutrition, 73(1), pp.127-139.
Nguyen, N. and Johnson, L.W., 2020. Consumer behaviour and environmental
sustainability. Journal of Consumer Behaviour, 19(6), pp.539-541.
Santos, V. and et. al., 2021. Factors influencing touristic consumer behaviour. Journal of
Organizational Change Management, 35(3), pp.409-429.
Smith, A., 2019. Consumer behaviour and analytics. Routledge.
Swarbrooke, J.S., 2022. Consumer behaviour. In Encyclopedia of Tourism Management and
Marketing (pp. 606-608). Edward Elgar Publishing.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Testa, F., Iovino, R. and Iraldo, F., 2020. The circular economy and consumer behaviour: The
mediating role of information seeking in buying circular packaging. Business Strategy
and the Environment, 29(8), pp.3435-3448.
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