Impact of Digital Technology on Customer Decision Making in Travel and Tourism

This research project investigates the influence of digital technology on customer decision-making processes within the travel and tourism sector. Focusing on the TUI organization, the study aims to understand how technology impacts customer engagement, booking behavior, and overall satisfaction. The research utilizes a mixed-methods approach, combining quantitative data analysis from surveys with qualitative insights from interviews. The findings highlight the significant role of technology in shaping customer preferences and providing greater flexibility in travel planning. The research concludes with recommendations for TUI to leverage technology effectively to enhance customer experience and drive business growth.

RESEARCH PROJECT
(Impact of digital technology on customer decision
making in travel and tourism)
1

TABLE OF CONTENTS
LO1..................................................................................................................................................1
1.1 Formulate and record possible research project outline specifications.................................1
1.2 Identify the factors that contribute to the process of research project selection....................3
1.3. Undertake a critical review of key references......................................................................4
1.4. Produce a research project specification...............................................................................6
1.5 Provide an appropriate plan and procedures for the agreed research specification...............8
LO2..................................................................................................................................................9
2.1. Match resources efficiently to the research question or hypothesis.....................................9
2.2 Undertake the proposed research investigation in accordance with the agreed specification
and procedures...........................................................................................................................10
2.3. Record and collate relevant data where appropriate...........................................................11
LO3................................................................................................................................................13
3.1. Use appropriate ‘research evaluation techniques’. Which types of evaluation (formative or
summative) is more appropriate for your research? Why?........................................................13
3.2. Interpret and analyze the results in terms of the original research specification................14
3.3. Make recommendations and justify areas for further consideration..................................25
LO4................................................................................................................................................26
4.1. Use an agreed format and appropriate media to present the outcomes of the research......26
References......................................................................................................................................27
2

LIST OF TABLES
Table 1: Entire procedure and plan for the conducted research......................................................8
3

LO1
1.1 Formulate and record possible research project outline specifications
Title of the research
The below research is about to identify the influence of the digital technology in the travel and
tourism sector, especially in the customer decision making toward the products and services of
the organization in the industry. TUI organization is considered for the performance and the
customer base to analyse the impact and usage of the technology. The research is conducted for
the purpose of finding out the contribution of the technology on the expansion of the
organization.
Background of the research
The use of the technology in the tourism sector will cover the utilization of the internet, mobile
phones and digital systems to influence the customer decision making for the services. With the
help of the technology, the customers can immediately book their trips and accommodation in
the hotels. This research is about to get the knowledge of the digital technologies in the sector of
tour operation so that they can provide the flexibility of the services.
Aim and objective of the research
Aim
The research aims all about to get the knowledge and understanding about the technological
impact on the organizations which are used currently used in the market (Brace, 2018).
Objectives
 To understand the business structure and operations in travel and tourism sector in
comparison of the technologies in trends. To identify the importance of internet and mobile system to enhance the customer or
tourist base of the tour operating organization. To evaluate the influencing power of the technology on the decision making of the tourist
during tour planning.
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Research related questions
 How the travel and tourism sector is using technology to meet the business demands and
engage the customers in the operations?
 How customers are using technology to select their tours and packages?
 What are the common features and factors impacting the business to make the business
strategically growth aligned to customer satisfaction points?
 What are the common preferences of the customers during the online interaction with the
business and services?
Rationale
Technology has impacted the business to meet the customer demands and expectations. The
organizations as well as customers are using technology to meet their requirements. The
organizations are making use of the technology to achieve the competitive benefits. The
customers are also influencing with the technology to make their decision for the purchase. The
presented research will analyze the travel and tourism sector and the activities through which the
organizations are using technologies to meet benefits (Malik et al, 2016). It also focuses how
customers are making decision with the use of the technology to select their preferred products
and services. The rationale of the research is to focus on the particular section of the travel and
tourism sector so that the more specific impacts and influences on the customer decision making
can be analysed.
2

1.2 Identify the factors that contribute to the process of research project selection
The factors used in the research are effective as they contribute in the research project process
and its selection. With the help of the factors it will become easy to understand the main reason
behind this research. The main factor of this research is related to the experiment on the
technology and to identify the influencing power of the technology on the tourist decision
making process. The main factor which contributes to initiate the process is related to identify
the main issue or problem and according to this the solution is also required to be provided (Bell,
2014).
The project not only include the deep discussion on the literature review part of the research but
also include the research methodology which help to identify the expectations of the customers
from the tour operating organizations like TUI. The major factor which helps the TUI and
research in this research is their skilled and knowledgeable employees who are contributing their
efforts for identifying the main impact of the technology on TT industries.
3

1.3. Undertake a critical review of key references
The main role and effectiveness of technology on the tourism industries
It is analyzed that with the help of the implementation of the digital technology in the sector of
tourism, the organizations can improve their customer quality as per the current trend of the
market. As per the Koo et al, (2015), the role of the technology is not limited only to the online
booking but also related to provide the details of the tourist destinations and the prices details of
the tour packages. The technology impact on the TT industries is not easy to identify because
this is so wide to evaluate but it is identified that the use of technology help the organizations to
connect with the customers directly.
According to author, the industry has received significant changes in the structure and the
operations with the involvement of the technology. For example, the traditional marketing
practices are changed into the digital marketing so that the customers on social media and
internet can be targeted to make use of the services from the organization. Communication, data
sharing and real time monitoring of the customer preference is increased with the help of the
website and mobile application technologies. The organizations are now more analytical in the
strategic decision and practices whereas the customers are also gaining the benefits to use the
technology. They can browse and select the desired product or service and meet the desired
features. They are now not dependent on the dominant businesses at workplace as the technology
has helped to scale the services at global level.
How technology influences and attracts the customers in tourism sector
As per the Han and Hyun (2015), the attracting and advanced features of the technology and
systems will attract and influence the customers towards the tourism. There are many flexible
facilities which can be provided by the TT industries to their customers with the help of the
technology implementation. The advanced services are related to the easy online accommodation
booking, direct digital payment; reduce carry of cash and easy cancellation. These are some of
the attracting features which influence the customer or tourist towards the tourism sector and its
quality of services.
Technologies are influencing the customers to browse the products and services within their cost
and availability factors and then they can make use of the services. Wide availability of the
products and services through the multiple organizations has enabled the customers to choose the
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most suitable business for the services. In this manner, the prices are dropped and service quality
is improved. At other side, easy payment and order management is key point to attract the
customers.
How elements of technology have the impact on the performance of TT industries
There are many elements and systems which are used by the organization on the place of the
digital technology such as- internet, digital system and mobile phones. As per the Nagle and
Müller (2017), the internet is used by the organizations to provide the complete detail and
information about the trip and packages to their customers and customers used internet to look
after the places where they are planning to visit. Mobile phones are also used to create the
application by the organization name so that customers can book their trip from that application
directly. Digital systems are also used by the organization to record or manage the details of their
customers on that system through which they can retain with the customers and employees for a
long period of time.
With the use of the digital payment systems, online advertising and communication, the
organizations have saved a lot of cost on the operational activities. It also enabled the
organizations to share the data within the effective time to boost the performance in the decision
making process. Technology has enabled the organization to monitor the customer market and
enhance the services for the customers through the sustainable changes. Internal operations as
well as communication among the stakeholder are improved so that business functions and their
performance can be improved.
5

1.4. Produce a research project specification
The presented research project is accomplished with the consideration of the major activities and
their outcomes. The specification has clear outline of the activities so that desired outcomes can
be achieved. The organization can process with the following key points in the specification:
Objectives
The organization has goal to identify the influence of the technology on the customer purchase
and engagement behaviour with the services. The organization has objectives to understand the
concepts of the technological impacts on the business and the customers and to identify the ways
in which it can be used to meet the requirements.
Background
The research has goal to understand the business practices and customer behaviours so that the
influence of the online marketing and the payment process can be understand on the customers.
The research has more specific questions to understand the practices those can be used to
improve the use of the technology and reduce the cost and time to meet the competitive benefits.
Scope
Description: It has scope to support the internal management of the business to engage the
customers. The research can help to improve the customer services so that growth and the
sustainability can be achieved. It has scope to determine the potentials in the market in the
comparison of the technology.
Coverage: The research project is designed to achieve the answer of the several questions on the
technological advancement and their integration in the business along with impact on the
customer decision making. The research has focussed through the questions to understand the
customer market and the scope of the research to determine the potentials with technology to
improve the customer services:
 How internet and mobile applications have reshaped the business of travel and tourism to
scale the operations, market the services and engage the customers?
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 How technology enabled customers to achieve the expected services within their cost and
time?
 How strategic growth of the organization is influenced with the technological equipment?
 How the technology can bear the additional cost on the business during the installation
and management?
 What are the major trends in the business through the technology?
The research type
The main step which is required to be taken by the researcher is related to select the appropriate
type of the research. There are two type of research such as- quantitative and qualitative and
among these two the researcher need to select one. As per the requirement of the research,
quantitative research is the best research in which primary and secondary data can be collected.
Size of the sample or respondents
This step is conducted by the researcher in which random selection of the people are done from
the population. This helps the researcher to conduct the survey among the respondents and
identify their thoughts (Veal, 2017). For example: researcher select 30 respondents for this
researcher and conduct research between them.
Select the data collection method
Secondary and primary are the two methods of data collection which can be used by the
researcher for this research. Secondary research can provide the past analysis on the same topic
but primary research provide the new and fresh information and survey from the selected
respondents. As per the selected research type, primary data collection method is most
appropriate method that can be used for this research (Jimenez et al, 2015).
Data analysis method
The research use primary data collection method and according to this, questionnaire or
interview is the best method for the data analysis. With the help of the questionnaire survey they
can provide some of the topic related questions and conduct the research. This quantitative
research type helps the research to get the direct feedback of the respondents.
7

1.5 Provide an appropriate plan and procedures for the agreed research specification
Following are major activities in the research project to achieve the desired outcome. The
research has included the several activities those are specific to deliver the results to support the
outcomes.
Table 1: Entire procedure and plan for the conducted research
Activities
conducted in the
research
Week
one
Week
second
Week
third
Week
forth
Week
fifth
Week
sixth
Week
sevent
h
Week
eight
Select the research
topic
Include the research
introduction with
research aims and
objectives
Start literature
review part related
to the research topic
Implement the
research
methodology for the
analysis
Collect the data and
analyze the findings
from the research
Include and analyze
the final conclusion
and provide some
recommendations
8

LO2
2.1. Match resources efficiently to the research question or hypothesis
Research design
According to the researcher, this mixed research is used to ascertain the effect of technology on
the travelling sector. The quantitative method and qualitative method both the methods of
research used in mixed research. Mixed research is very useful and effective because, in this
research, the researcher collects the data from different sources with high accuracy and
reliability. To determine the technological impact research is done by the researcher by preparing
questionnaire with questions related to required details and answers and opinions are taken from
customers from the group of the selected population (Hair Jr et al, 2015).
The hypothesis of this research
The hypothesis of the research is a process in which for achieving main aim and objectives of
research data collection of relevant and related questions is done by the researcher. The question
of research is prepared according to the central idea of research which shows the relation
between customer and research topic. For example, the questions related to technology, its
impact, its use, etc. for customers as well as an organization also.
Methods used for data collection
For ascertaining the result researcher have to take many different opinions on a selected topic for
this purpose primary data collection method is used. In the primary method of research
questionnaire and interviews are conducted among the population in fresh. For conducting the
survey correlated to past analysis and records secondary data is also used by the researcher.
Resources needed in this research
The major resource of the research required by the research is time management and cost
management. The researcher should create time schedule according to the availability of time of
limited weeks to cover the requirement for proper management of activities and research
resources to complete the research (Sekaran and Bougie, 2016). With the help of descriptive
research, researcher can identify the problems and issues by using resources like Tables, charts,
and graphs, etc. This research includes questions and hypothesis testing which totally depends on
resources available for research.
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2.2 Undertake the proposed research investigation in accordance with the agreed specification
and procedures
Research validity and reliability
The data collected by the researcher by conducting research from the proper resources reliable
and authentic. By using privacy maintenance technique, researcher can maintain validity element
and can also manage accuracy of data.
Collection of data analysis
There are some resources to effectively analyze and understand the collected data from selected
respondent like Tables, charts, and graphs (Lampard and Pole 2015). It helps in understanding
the data with description. The quantitative research method is used to complete collected data
analysis section.
Techniques used for sampling
To select the size of the sample from the population the method of sampling is used by the
researcher. The sample is selected on the basis of random selection from the population. The
solution to the identified issue in the digital technology impact research can be provided by the
researcher with the technique of research. In sampling approach, sample from the few results are
used as the standards to validate and verify the outcome. During sample, a baseline is set to
define the quality and the performance.
10

2.3. Record and collate relevant data where appropriate
The research conducted by the researcher and the data is presented in the form of the graphs and
tables. With the help of graphical presentation it will become easy to understand the actual
findings of the research. For conducting the research, the researcher selects the questionnaire
survey and the following questions are asked by the researcher to the selected respondents:
You’re Name: ______________
Your course name:
1. What is you sex category?
o Male
o Or female
2. In which age group you fit?
o Below 25 years
o 25-35 years
o 35-45 years
o 45 years above
3. Select your professional sector
o Private employee
o Government employee
o Businessman or business women
o Unemployed
4. Do you love travelling?
o Yes
o No
5. How much you will travel?
o In a year
o In a month
o In a quarter
6. What tourism you mostly prefer?
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o Adventure tourism
o Religious tourism
o Business tourism
o Sports tourism
7. Do you use mobile applications or internet sources for selecting destination?
o Yes
o No
8. Do you think technology will help to get flexibility during your tour planning and its
booking?
o Yes
o No
9. What is the most comfortable feature of technology which attracts you in tourism?
o Selection of place
o Online bookings
o Digital payment
o Nothing
10. What internet source you mostly use to get the information of tour packages?
o E-mails
o Official websites
o Blogs
o Social sites (Facebook)
11. Do you think technology help customers to take proper tourism decisions?
o Yes
o No
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LO3
3.1. Use appropriate ‘research evaluation techniques’. Which types of evaluation (formative or
summative) is more appropriate for your research? Why?
The techniques which are used in the research and its evaluation are required to be selected by
the researcher. The techniques are used in the research to get the effective and proper research
and information from the conducted research. The information helps the organization like TUI to
get the answer of the question which is related to identify the impact of technology on their
performance. There are two type of the research evaluation technique such as- summative and
formative which help the researcher to get the relevant information (Fastring et al, 2018).
With the help of the summative researcher evaluation technique the researcher will get the
accurate information and thoughts of the respondents in this the respondents are selected as per
their interest only and who are comfortable to provide the feedback. The researcher mainly
focuses on identifying the accurate outcome of the topic to get the final conclusion and for this
they can select the summative research technique for research evaluation. On the other side,
formative research help the researcher to collect the data related to the researcher which is worth
only. So researcher select the summative technique because under this feedback is achieved by
own thoughts of the respondents only. Therefore, during the formative evaluation, the research
values and inputs are considered according to the defined criteria. In summarized evaluation, a
detailed theory is presented on the research process and the outcomes.
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3.2. Interpret and analyze the results in terms of the original research specification
This research is conducted between the 30 respondents which are selected randomly from the
population by the researcher. The questions are related to the technology use in the TT sector for
influencing the customers and their decision making process. Following are the 11 questions of
this research:
1. What is you sex category?
o Male
o Or female
Male 20
Or female 10
Total 30
Male
67%
Or female
33%
Analysis and interpretation: The research is conducted between the customers and this
question is asked to identify the number of male and female among the 30 respondents. It is
identified that there are 67% are male and remaining 33% are female.
2. In which age group you fit?
o Below 25 years
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o 25-35 years
o 35-45 years
o 45 years above
Below 25 years 5
25-35 years 8
35-45 years 12
45 years above 5
Total 30
17%
27%
40%
17%
Below 25 years 25-35 years 35-45 years 45 years above
Analysis and interpretation: The above asked question from the researcher to the 30
respondents is to identify the age group of the sample. As per the analysis, 40% are among 35 to
45 years, 27% are among 25 to 35 years, 17% below 25 and remaining 16% of the people are
from 45 above.
3. Select your professional sector
o Private employee
o Government employee
o Businessman or business women
o Unemployed
15

Private employee 5
Government employee 8
Businessman or business
women
12
Unemployed 5
Total 30
17%
27%
40%
17%
Private employee Government employee
Businessman or business women Unemployed
Analysis and interpretation: This questionnaire survey is related to identify the professional
sector or occupation of the 30 respondents and it is analyzed that most of the respondents are
business man or business women. On the other side, 5 respondents among 30 i.e. 17% are
unemployed. 27% of the respondents are belong to the government job and 16% are from pirvate
sector.
4. Do you love travelling?
o Yes
o No
Yes 25
No 5
16

Total 30
83%
17%
Yes No
Analysis and interpretation: The above asked question from the researcher to the respondents
is to identify the interest of the people regarding travel and tourism. It is identified that most of
the people love to explore the places by spending their vacations.
5. How much you will travel?
o In a year
o In a month
o In a quarter
In a year 15
In a month 5
In a quarter 10
Total 30
17

50%
17%
33%
In a year In a month In a quarter
Analysis and interpretation: This analysis show that 50% of the respondents travel once in a
year as they love to travel and explore the places but 33% like to travel in a quarter and 17%
travel once in a month which show their frequency of travelling.
6. What tourism you mostly prefer?
o Adventure tourism
o Religious tourism
o Business tourism
o Sports tourism
Adventure tourism 12
Religious tourism 8
Business tourism 5
Sports tourism 5
Total 30
18

40%
27%
17%
17%
Adventure tourism Religious tourism
Business tourism Sports tourism
Analysis and interpretation: The analysis show that 40% of the people like adventure tourism
to spend their quality of time. 26% of the people like religious tourism and remaining people
travel for business purpose or sports purpose. So TUI organization can focus on the adventure
tourism.
7. Do you use mobile applications or internet sources for selecting destination?
o Yes
o No
Yes 27
No 3
Total 30
19

90%
10%
Yes No
Analysis and interpretation: Among 30 respondents, 90% of the respondent uses the mobile
applications and sources of internet to book their trips and other facilities but still 10% of the
people not using technology in tourism.
8. Do you think technology will help to get flexibility during your tour planning and its
booking?
o Yes
o No
Yes 20
No 10
Total 30
20

67%
33%
Yes No
Analysis and interpretation: The above question is related to understanding the effectiveness
and importance of technology in the customer tour planning. It is analyzed that around 67% of
the people are in the technology favour as they believe that technology help and make their
planning flexible.
9. What is the most comfortable feature of technology which attracts you in tourism?
o Selection of place
o Online bookings
o Digital payment
o Nothing
Selection of place 10
Online bookings 5
Digital payment 12
Nothing 3
Total 30
21

33%
17%
40%
10%
Selection of place Online bookings Digital payment Nothing
Analysis and interpretation: 40% of the respondents share that technology is most useful for
the purpose of digital payment at any place. On the other side, 33% of the people think that
technology is useful to see the pictures and select the most attractive destination for their
vacations.
10. What internet source you mostly use to get the information of tour packages?
o E-mails
o Official websites
o Blogs
o Social sites (Facebook)
E-mails 5
Official websites 15
Blogs 4
Social sites (Facebook) 6
Total 30
22

17%
50%
13%
20%
E-mails Official websites
Blogs Social sites (Facebook)
Analysis and interpretation: It is analyzed that 50% of the people consider the official websites
of the tour operators to get the information of the tourism. On the other side, 20% of the people
use social sites like Facebook and remaining 13% and 17% use blogs and e-mail technology.
11. Do you think technology help customers to take proper tourism decisions?
o Yes
o No
Yes 26
No 4
Total 30
23

87%
13%
Yes No
Analysis and interpretation: 87% of the respondents think that technology and its sources help
them to take the tourism decisions and select best place for their trip but still 13% of the people
think that technology have no use in tourism.
24

3.3. Make recommendations and justify areas for further consideration
According to the above conducted research, it is identified that the use and implementation of the
technology help TUI to influence their customers towards their services and packages. The
technology not only helps the TUI but also provide the flexibility to the customers when they
want to make booking online. The feedback is taken from the 30 respondents which are selected
by the researcher as the sample size. This is essential for the TUI to hire the researcher who can
conduct the research on the market so that they can implement the changes for their further
growth and improvement. TUI is the tour operating organization and they conduct the market
research in which they identify the customer expectations and views about the use and services
of technology (Huang et al, 2016).
As per their actions and findings it is recommended to the TUI and the researcher of this research
that they should conduct the market research because this action will provide them accurate data
and analysis from the market and help them to take the right decision regarding technology. TUI
tour operator can provide the various types of the technology services and offers which influence
the customers towards the technology. For example: TUI can provide discount offers to the
customers on their online booking for the trip. This type of offers will enhance the utilization of
the technology in the tourism industry.
25

26

LO4
4.1. Use an agreed format and appropriate media to present the outcomes of the research
27
As per the attached graph if tools included in the cyber for
the tourism sector it is identified that most of the people use
cyber tools for planning and booking of their tour. The cyber
tools include the blogs, websites, Facebook, social sites,
internet etc. These sites are effective to get the relevant
information about the tour operating organization and their
services.
Use of technology in the travel and tourism sector to change the
customer decision making process
The research conducted by the research has
concluded that use of technology in this
sector influence the customers to attain
more detailed information about the
tourism. This is beneficial for the
organizations like TUI as they can attractive
customers by providing flexible travelling
services which reduce their extra efforts.
This research is related to identify the use of
internet and mobile system in the tourism
and it is identified internet and mobile
applications are used for online booking and
digital payment. This research is useful for
TUI to enhance their performance with
Growth in media with years
Tools related to cyber
used in tourism sector
Agree Disagree

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