Hospitality Consumer Behaviour and Insight

This report discusses the different factors influencing consumer behaviour in the hospitality sector, including cultural, social, personal, and psychological factors. It also examines the stages of the decision-making process and the marketer's response to it. The impact of digital technology on consumer trends is also discussed. The report includes examples from Hilton Hotels and Resorts and other companies. Subject: Hospitality Consumer Behaviour and Insight

Hospitality Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Factors Influencing the Consumer Behaviour.............................................................................3
3. Determine on the hospitality consumer decision-making process...............................................7
4. Different stages of hospitality consumer decision-making process along with examples.........10
Discussion on the marketer's response to the decision-making process with examples................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Consumer behaviour is a study that evaluates the different patterns of consumer wants,
needs, preferences, and the behaviour. In hospitality sector, understanding the consumer
demeanour is a great way to increase the revenue by a great percentage. This, in turn, signifies
that the marketers of hospitality sector are well aware of the buying decisions that a consumer
makes, which, in turn, can help them in turning a visitor to a loyal customer. Alongside, an
evaluation of buying etiquettes helps with understanding the operational management as a whole.
Hilton Hotels and Resorts is one such UK based multinational company mentioned in the
report with the database of serving more than 90 countries. Considered to be enlisted in Fortune's
list by employee satisfaction, the Hilton owns a large market cap.
The study will examine different factors affecting consumer behaviour, stages of
decision-making, different approaches used to analyse consumer purchasing decisions,
influences of marketers on different stages of buying decisions.
MAIN BODY
1. Factors Influencing the Consumer Behaviour
To understand the consumer behaviour, it is important to analyse the different thinking
patterns to consumers that goes a long way to operate the hotels for maximum efficiency.
Therefore, there are four social, culture, personal and psychological factors that make the
consumer choose a particular service.
 Culture Factors: The cultural factors refers to the traditions, values and customs that have
been passed on to an individual from family, friends, and relatives. In perspective of
hospitality sector, the scope of cultural factor can be understood as behaviours and
lifestyle attitude adopted in the family(Mariani and Predvoditeleva, 2019). If a consumer
belongs to a culture that entertains luxury, then there is a high likelihood of their
behaviour to choose the best rooms with special amenities. Social Factors: The social factors in hospitality sector can be typically grouped as
reviews, references, opinions and social media channels(Sarkar, Khare and Sadachar,
2019). With the advancement of digital era, the use of social media has maximized and
resulted in better growth of hospitality services. With the help of opinions and review, it

is easy to form an opinion that ultimately foster the decision to buy a particular service
from a variety of options. Personal Factors: Unlike many other factors, the personal factors play a prominent role in
differentiating the best service. Apart from personal experiences that build a psychology,
there are certain factors like age, income, preferences, and lifestyle that shape the
decision for a consumer(Karl, Muskat and Ritchie, 2020).For instance, a better income
would result in increasing the budget that meets all the needs. Also, a consumer make
mature decisions with growing age and changing lifestyles.

Psychological factors: The psychological factors, as opposed to above-mentioned factors,
are more inclined towards making a mental image of a particular service. In this case for
example, it is quite detrimental that the consumer first introspect about a particular
service either through experiences or ads that derive sales(Ali and et.al, 2018). Although,
the changing psychological factors have been only fostering the online sales in hospitality
sector.
Evaluation of Changing Consumer trends with usage of digital technology.
It has been reported that the digital tech industry grew six times faster than any other
sector in the UK in 2019 (FE News, 2003-2021). With increased usage in Artificial intelligence,
5 G networks, and improving technology, there have been instances where digital technologies
shoot the UK revenue by a proportionate margin. Apart from developing the statistics for UK
growth, the Digital advancement has, by and large , shaped the consumer behaviour in many
ways(King and et.al, 2019.) Few of the implications that have mould the consumer buying
patterns are enlisted as: Access to Flexibility: With emerging use of smartphones, laptops, cloud based apps, and
AI technology, people are diverting towards advance options that are flexible with
changing trends(Jalilv, Pool, Khodadadi and Sharifi, 2019.). With aspect to hospitality,
using a (smartphones) come across handy since people have easy access to different
websites to find the relevant information. However, the Mitchell and Butlers faced a
challenge where easy access to their website have resulted into severe rise in
unemployment in the year 2019. Soaring Expectations: With digital era, the sheer practice of being limited to restrictive
hours and limited supplies have now evolved to a great extent. With availability of

multiple websites, the consumers have made their own expectations to meet the
preferences. Also, the usage of digital technologies have helped buyers to make
customized decisions and make a smooth transition to other websites if a particular hotel
fails to meet the demand. Efficient Comparison skills: Digital age make people equipped with facilities to compare
the two different services in terms of value, quality, pricing, and safety standards at the
same time ( Verma, Chandra and Kumar, 2019. )A quick read and follow instructions
and prompt feedback help consumers make an in formed decision. Eventually, the use of
mobiles and laptops at the same time help one make appropriate comparison to find the
best hotel service.

Development of AI-advanced technology: The online mode has targeted millions of
users to make a purchase through AI-driven technologies. This has become even more
prominent since the arrival of facial recognition, machine learning and chatbots have
generated quick customer service. With many AI-advanced devices available, users get
personalized services based on past searches and unified suggestions.
2. Stages of Consumer decision-making process
A purchasing decision is one of the most time-consuming process for buyers as it takes a
lot of time and effort to persuade the mind to pick the best service. In case of Hospitality sector,
there are endless opportunities where users get immense information about a particular hotel
with a focused and goal-oriented thinking process. Having said that, it is important to focus on
four different stages to frame a decision that only feels satisfied and true to the picture. Set out the objectives and expenditures : Most of the people focuses on the costs of the
services. Building a loyalty and awareness among the customers can influence them. In
the hotel industry, it has been founded that people are very concerned about the prices
and their expenditures(Stylos and Zwiegelaar, 2019.). Looking at this, Hilton make their
services according to the customer satisfaction. Communication : For winning the battle in this field require proper communication
between the management and consumers. Connecting with them by mails or voice
process it can clarify the doubts and can also give suggestions if needed.

 Investment : People always look for the luxurious living. By managing the interior
designs delicate and deluxe, so they can attract people. Investing in the decor and best
quality services ensure the good results as
Hilton creates an advertisement over television
so people can see their high-grade quality of living.

Top Scoring : Research, investments and communications can lead to satisfactory
customer and final purchase. Gathering new objectives and performing with different
strategies to attract customer with their expectations is like winning the battle in
hospitality sector.
Mapping a customer's journey is important for understanding the needs of the customer
with different strategies. According to experience, empathizing with customer serves successful
outcomes to administration. Without the journey mapping it wouldn't be understood about the
customer problems related to the hospitality. In other words, management is not providing the
good services and memorable experience to the customer. Not only the customer it also helps
management to know how the behavioural decision matters(Foroudi, 2019). Making digital
solution for people help to maintaining the customer contentment. It helps to know about the
client experience and their suggestions. It is relevant for all kind of industries either small or
larger company. Running a hotel business is challenging by making customer in comfortable
zone. Current research discover that 84% of customer like to be treated well. Highlighting the
customer journey benefits such as :
 Make them feel comfortable and do something to feel them special.
 Improve the management according to the feedbacks of customer.
 Provide them stay and departure, travel and all the services according their
expectations.
Improving the sales rotation is another benefit of mapping. In this department mapping
the journey ensure the best approaches to consumer in which this cycle is energetic(Bravo and
et.al, 2019.) Receiving the correct message at accurate time, help to make or improve the
decision as soon as possible. After understanding the customer journey it will help to make
strategies and create a better decision-making process including behaviour and traditional rituals.
This can be defined in such steps that what responses marketers do for the following:
 Finding root cause of problems
 Framing decisions through research

 Alternative judgment
 Purchasing Power
 Final Conclusion
3. Determine on the hospitality consumer decision-making process.
Highlighting the differences of hospitality decision-making in the context of B2C and
B2B process :
B2B B2C
Meaning Transaction of one
business to another
business known as B2B
process.
Transaction of business
directly to consumers
known as B2C process.
Relationship Make relations with teams
& companies.
Individuals and
households.
Decision-making Require group of people
to decide.
Require 1-2 people to
decide.
Scale Volume Quantity of the product is
high.
Quantity of the product is
low.
Identity Product can be identified
on personal basis.
In this product can only
identify by the images.
Period This process takes a long
time as it is a long
process.
It takes a short time of
period as it is simple
procedure.
Description In this procedure, it
provides detailed
In B2C, it does not provide
detailed information just

information about the
goods.
create short and broad
matter.
Prices In B2B, payments are
based on agreements
according to business
needs.
In this market, consumers
pay the same prices and
also offers discounts and
coupon codes.
Market strategies Content is much
important.
Distinguished design is
more important.
Requirement Based on logic and
characteristics.
Based on desires and profit.
Examples Hilton hotel and
Travellanda.
Amazon and Nike.
There are mainly four types of different approaches in the market for getting more knowledge
about the decision-making process. Rationality Approaches : The term “ rational ” means accordance with logic which can
be defined as the process of making choices step by step with unique philosophy and
objectives and examine the procedure of market(Giannikas, 2017 July). This theory
states individual to utilize their knowledge and provide the large profit in field. This path
includes creating a goal, recognize the decision-making criteria, market analysis,
identifying substitute and lastly by making final decision. Following all these steps
accordingly with utilizing the knowledge and idea can make productivity in good
manner. Heuristic Approaches : This can be said as problem-solving theory by using practical
methods to perform and produce solutions. In short term, it is a shortcut method to

resolve a problem and make quantitative relation. Practising this activity it reduces the
fault and can supply good results(Honarmandi, Sepasi and Azar,2019). It helps in
overcome the stress of decision-making and mental efforts.It includes representativeness,
anchoring judgements and availability to identify the solutions. Intuition approaches : This term defined as the ability to understand the things in instinct
manner by their knowledge which can help to provide a better solution in market by
making fast decision. This activity can tackle the complex matters with their
understanding and knowledge.

Naturalistic Approaches : It is non-experimental method with multiple aspect which is
observed by their experience and qualitative research in market(Andrea, et.al, 2019). It
can be identified by the human behaviour in real context by performing the logical
decisions in market and effects the production by their experience.
Apart from all these, there are different methods for market research to understand the decision-
making process which has been categorized into five objectives : Survey: A method of presenting the samples of products, their packaging , promoting
and getting direct reviews of people. Survey can be done by telephonic, mailing or
online advertisement. Focus Group : In focus group, it involves gathering of people to discuss the main
objectives at different locations for broadcasting. Personal Interviews : It is just like focus group, it includes unstructured questions which
is recorded(Chang and Tanford, 2018). From this it provides more information and deep
conservation about the product. It is an effective way to bring out the issues regarding
the object and service development. Observation : This make people more focus about the products by observing the video
recordings in a mall or showrooms which helps them as how it can be used. Field Trials : Giving field trials like placing the products at some stores so that people
can buy and gives the feedback regarding the product, so they can improve packaging
issues and by adjusting the price(Joseph Sirgy,2019). Let's discuss different factors
which influence hospitality decision-making and consumer behaviour. It has been
classified into four major objectives with above mentioned hospitality example.

 Ethical Cause : It values the customs and traditions which plays an important role in
society for example on weekend days
Hilton hotel organize British morris dance
function. Social group : It evolves reference group, family and role and status in a society. For the
family,
Hilton serves free entries in a traditional function which organizes in the hotel. Personalized Section : This is a major objective that influence the consumer behaviour as
it includes occupational and economic situations of an individual as
Hilton arranges the
business conference according their needs.

Scientific subject : It refers the motivation, learning attitude and beliefs of a particular
consumer as
Hilton organize motivational debate once in a week.
4. Different stages of hospitality consumer decision-making process along with examples. Problem Recognition : The ability to recognize the need or desire of an individual and
solve their problems known as problem recognition. At first step, owner of the business
have to know that what is the need of people and how they can provide the solution for
them (Ruiz-Palomo and et.al, 2020). Focusing on the needs of an individual may develop
the trust and loyalty towards the hospitality. Taking example of UK based hotel
Hilton
which has a big conference hall for arranging the meetings over there so the management
provide all the services of food, arrange equipments like videotaping and projectors for
meetings. Information Search : This provides information about the business operations. It
improves the management and performing power of the hospitality. Hilton creates a
website where they updated all the information about the services where people can tell
their views on the services and management. Alternative Evaluation : In this activity, customers focus on the services and management
of the objective(Kenebayeva, 2020). It includes the finance, innovation, excellence
services, healthy and safety surroundings. Hilton's conference hall and services are better
than Tower hotel where they provide discounts on business meetings. Purchase Decision : Consumers look for relevant prices with excellent offers from the
management. It includes all the facilities like spa, food, and travel. Looking at prices they
provide affordable cost with the best service and food.


Post Purchase Evaluation : The stage of giving feedback after the purchasing of goods or
service. Majorly all the needed facilities of the customers expectations are provided by
the Hilton.
Here, framing the marketer's response to the decision-making process with examples. Understand the situation : In the hospitality, management try to get knowledge about all
the requirements of the customers so that they can fulfil all the needs and desire of an
individual for example Hilton provides pre-booking services to the customers. Research : Management identity the needs of people by creating a website where they can
put their views according to the needs and desire(Ladsawutand and Nunkoo, 2018). For
example a customer needs to do destination wedding in the hotel, so they can visit all the
services by website. Hilton has created an official website for their customers. Drawbacks : It can be referred as identifying the disadvantage of an organization
comparing to another one. Management gather information and give better services
which can approach customer for their organization. Hilton served coupon discounts and
giving the welcome gifts to an individual. Affordable Costs : It is the most important sector in the decision-making process.
Management serves affordable price to the customers so that they can have more
customers and gain profit.

Take Action : By serving the facilities like survey on social media, newspapers, creating
a website for suggestions and many more. Hilton apply all these step so management can
give high service and fulfil all the requirement of the customers.
In hospitality industry, consumers can be influence by some models such as by using
technology or by finding a new angle in business(Sigala, et.al, 2017). Elaborating the use of
technology it can be referred as creating websites on social media and advertisement over
televisions and radios. Searching new opportunity by using the skills and focusing on the ideas
and unique strategies which can take company to the higher growth put a new angle to the
industry. Along with this, there are basic five methods which can influence the consumers such
as :
 By proper communication either online or offline.
 24/7 Customer support
 Understand the needs

 Stay trendy
 Satisfactory value
The concept of hospitality industry is that they focus on the relationship with the
customers(Panwar and et.al, 2019). They want to reach out the new customers with trust and
loyalty which can take them to success. In this industry, there is a theory of planned behaviour
(TBP) which is used in understanding the consumers behavioural intentions and attitude.
According to this theory, Hilton hotel practise this activity so that they can give the best services
and increase their decision-making skills.
CONCLUSION
In the above report, it has been concluded that how decision-making process influence
the consumers as well as marketer's in a society. By some methods, approaches and theories it
can de identified that what consumers need and how marketers can fulfil their requirement.
Along with this, it has been described that what and how B2B and B2C companies do their work
and discussion about their major differences which affects the hospitality industries. According
all these concepts and discussion ensures that decision-making process plays a vital role in field
of marketing as well as hospitality. Customer satisfaction is the major priority for management to
become a successful and challenging organization.

REFERENCES
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