Importance of Customer Needs and Wants in Hospitality Sector

This report emphasizes the importance of understanding the needs and wants of customers in the hospitality sector. It explores the factors that drive and engage different customer groups in the industry. The report also discusses the role of digital technology in improving customer engagement and customer service strategies in the hospitality sector.

INTERNATIONAL TRAVEL
AND TOURISM

Table of Contents
INTRODUCTION.....................................................................................................................................3
LO1........................................................................................................................................................3
P1. Importance of needs and wants of customers in hospitality sector............................................3
P2. Factors drives and engage different customer group in hospitality sector..................................4
LO2........................................................................................................................................................6
Customer experience map.................................................................................................................6
P4. Customer touch point create opportunities for the hotel...........................................................7
Influence of Digital Technology in Customer Relationship.................................................................8
Customer Service Strategies............................................................................................................10
Importance of Customer Service Strategies.....................................................................................11
CONCLUSION.......................................................................................................................................11
REFERENCES.........................................................................................................................................12

INTRODUCTION
Hospitality industry is defined as a service industry engaged with services like
lodging, food and beverages, events, tourism and transportations like operations.
This report is based on the case study of Holiday Inn Company in regards to
services in hospitality sector. Holiday Inn Company is a UK based company engaged
with hotel services. Company cater travellers and visitors with its hospitality services
in UK, Republic of Ireland and Spain. Headquarter of Holiday Inn Company is
located in Denham, UK. Company initiated its operations in the year 1952.
Henceforth, this report emphasis on the importance related to understanding of the
needs of the target customers in the hospitality sector. This report will also explore
about different factors that drives customer engagement in hospitality sector. This
report will also involve Customer experience map in hospitality sector. Role of digital
technology in improving customer engagement in hospitality sector will also project
in this report.
LO1
P1. Importance of needs and wants of customers in hospitality sector
Customers are considered as the important factor involve in the growth and
sustainability of the corporate organisations. Importance of assessing needs and
wants of customers in hospitality sector can be summarised in the following points.
Identify target market: Target market fior the Travel Lodge Company is the toursim
market of United Kingdom. Target market is an important factor behind the success
of business organisation. Assessment of the needs and wants of target customer
drives management of Travel Lodge Company to analyse about the target market for
company’s business (Camilleri, 2018). Hospitality is the service sector which largely
depends upon the satisfaction of the customer’s of company from services and
product quality. In order to offer the suitable services and products company
management needs to analyse needs and wants of the target customer’s in the
sector. For example identifying the customer needs allow company to identify about
the target market of the company.

Frame marketing strategies: All marketing strategies are framed on the basis of
the potential customers of company and also on the basis on the needs of the
customers. Management of Travel Lodge Company project all the needs and desires
of the customers in all its marketing campaigns in order to attract the target
customer’s towards engaging with company’s services. Marketing strategies are only
successful in case it get engage with company’s potential customer base. Catering
the needs and demands of the customer’s in the marketing campaign enables
customers to connect with the organisation easily through marketing of company.
For example all marketing strategies of the Travel Lodge Company based on the
potential customers of company so that company can attract such customers.
Company has launched campaigns like social media marketing to attract all
travellers.
Analyse customer willingness: Assessment of needs and demands enables
company management to analyse about the willingness of the target customer’s.
Willingness guides the company about all such factors that motivates potential
customers to buy company’s packages (da Silva and et.al., 2016). Management of
Travel Lodge Company set all packages based on the customer willingness analysis.
Hospitality industry is considered as among the emerging industry in the corporate
sector. Due to emergence of the hospitality sector hotels has also expanded the
number of services by introducing new services and customer willingness analysis
played crucial role in introducing new services to all potential customers of company.
For example identification of the needs of customers allows Travel Lodge Company
to serve the services that is needed by the customers. This also facilitates company
in selling such services conveniently.
Maximise sales revenue: Assessment of customer need also play crucial role in
maximising company’s sales revenue and profitability. Hospitality sector largely
depends upon the customers’ satisfaction in respect to maximising sales and
profitability of company. With the support of need assessment management of Travel
Lodge Company introduce new services and products in order to meet up all
expectations of customers and also to maximise the revenue of company. For
example if the Travel Lodge Company offers such services that is needed by
customers that becomes easier for the company to sale such services.

All the above factors are associated with the needs of the customers in target
market. Company management take competitive advantages with the support of this
analytical tool.
P2. Factors drives and engage different customer group in hospitality sector
Different factors drive different customer segment in the hospitality sector. All
such factors can be summarised in the following manner.
Brand value: Brand value of the corporate organisation play crucial role in the
decision making process of the potential customers of company. Hospitality sector
comprises with several customer segment which can be projected with corporate
customer segment, local travellers, guides and many other customer segment
(Zhang and Cole, 2016). All customer segments in UK make decisions in respect to
buying hotel; packages based on the brand value of the hotel in the market. Holiday
Inn Company comprises with an effective brand value in target market which
supports company to attract all kinds of customer segment in the target market. For
example high brand value of Travel Lodge Company allows company o engage with
all potential customers in market.
Service and product quality: Brand value also reflect the serviceand product
quality. Quality of service and products also an important tool influence the decision
making process of the hospitality market in UK. Hospitality is a service sector which
highly depends upon the quality of products and service. In case of corporate
customer segment quality of service and products is among the dominating tool
behind the decision making. As the business class customer segment do not keen
towards affordability rather the quality of service and products that attracts corporate
customer segment. High quality services of the Travel Lodge Company allow them to
sale the products of company easily in market.
Marketing strategies: Marketing strategies frame by company management also
influence the decision making process of hospitality market of UK. Companies utilise
different mediums such as social media, internet and other relevant mediums to
engage with all potential customer segment in travel and tourism market of UK
(Murphy, Gretzel and Pesonen, 2019). Marketing of the company enables customer
segment such as corporate customers, travellers and local visitors about all the
products and services offer by Travel Lodge Company. If the marketing campaign is

attractive it will influence the decision making process of all the hospitality customer
segments. For example management of the Travel Lodge Company run different
marketing campaigns so that company can attract all potential customers in market
towards buying company’s products and services.
Customer satisfaction: Customer satisfaction is an important key behind the
success of the corporate organisation. Hospitality sector in UK immensely based on
the level of customer satisfaction organisation achieve from the products and
services they cater to its customers. In case the company carry good ratting and
attractive customer experience it will attract to all other customer segments such as
travellers, local visitors, tourist and all kinds of customer segment. Management of
the Travel Lodge Company put huge emphasis on improving the level of customer
satisfaction from hotel services and product quality like food, lodging service and
other in order to engage with all kinds of hospitality customer segments. For example
factors that drives the decision making of customers are also channelizes into
customer satisfaction. Travel Lodge Company has started serving services like free
breakfast and other key services that has channelized into high customer satifsction.
LO2
P3. Customer experience map

(Kabadayi and et.al., 2019)
Customer experience map can be summarised in the following points.
Travel inspiration: Initially all potential customers of the Holiday Inn Company get
inspire to travel or visits a certain place. UK is considered as among the attractive
travel destination as per many reports that has shown social preference of people in
world in respect to visits UK for holidays. Customers also get inspiration from some
holdings or some kind og campaign. Marketing of the company also influence the
decision making of tourist. Along with getting inspiration to visit a certain place
travellers also get inspire in respect to staying at a certain hotel (Aziz, 2019).
Management of Holiday Inn Company run many marketing campaigns and initiatives
to inspire all the people across the world to make a stay in the hotel. For example
management of the Holiday Inn Company try to attract the customers at the time
customers get inspiration to travel by giving attractive offers to customers.
Research: As long as people inspire to travel a certain destination from any source
of information travellers starts to initiate research about the places, food, luxury,
environment, culture and other social aspects associated with the destination. Along
with all the cultural and native detail in regards to the destination customer’s a.lso go
through hotels and restaurants for the stay. All such hotels offer affordable packages
get more traffic in the hotel as they could effectively interact with the travellers. All
the further planning of travellers are immensely based on the outcomes of the
research. For example Holiday Inn Company improve its web presence so that
customers can get attracted towards the company at the time of research about the
destination. Company also supports its customers in choosing the proper destination
to travel.
Booking: Booking is the third stage involve in the customer journey in the hospitality
sector. Based on the research implemented at the earlier stage customers make
suitable bookings related to stay at the hotel and other associated bookings like flight
tickets (Uddin, M. and Uddin, 2019). Based on the research outcomes travellers
select the most appropriate hotel to stay. Affordability also play effective role for the
customers in respect to decision making for hotel bookings. For example Holiday Inn
Company give discounts to attracts the bookings of customers.

On property: This is the important stage involve in the customer experience in the
hospitality sector. After customers reach the travel destination this is the first step
they take to visit hotel and make a check in. This is more like a first impression of the
hotel in front of the customers after the research has conducted about the hotel. For
example Holiday Inn Company try to serve the best services so that better customer
satisfaction can achieve on property.
Post stay: This is considered as the most crucial stage of the customer journey in
the hospitality sector. This stage is more like a personal experience of the travellers
in the hotel. Post stay involve all experiences of the travellers such as related to stay,
food and all other associated experiences at the destination.
All the above stages involved in the customer journey in the hospitality sector.
P4. Customer touch point create opportunities for the hotel
All business and growth opportunities are influenced with the different touch
points involved in the customer journey. Opportunities can also be summarised in
the following points.
Marketing campaign: Management of the Holiday Inn Company give specific focus
on the marketing strategies in order to attract the decision making process of the
customers (Ottenbacher and et.al., 2016). Marketing campaigns run by companies
influence the decision making of te customer in the beginning stage of the customer
journey at the time of research. By projecting all the positive aspects of the hotel
company management can improve the traffic of travellers and customers at the
hotel. For example management of Holiday Inn channelizes marketing campaigns
like digital marketing and others to attract the customers.
Attractive packages: In order to book the hotel for stay at the travel destination
customers look for most affordable offers. Management of the Holiday Inn Company
give attractive offer and packages that can also suit in the budget of all the potential
customers. Packages of the hotel comprises with price, amenities and facilities
provided by company at the time of stay. By giving attractive offers company
management can attract the customers at the time of bookings. For example Holiday
Inn Company offers attractive offers like free stay on first bookings and other offers
to attract customers.

Improve customer satisfaction: Improving customer satisfaction at the time of stay
in the hotel is the best way to improve the growth potential of the hospitality
organisation (Olson and Poutanen, 2018). Quality of service play crucial role in
improving customer experience at the time of stay in the hotel. In order to improve
the customer experience hotel management of Holiday Inn Company follow the
policy of catering timely and effective services such as food and all other amenities.
All the above factors enables company management to improve the growth
potential of hotel by enhancing the customer experience in the hotel.
LO3
P5. Influence of Digital Technology in Customer Relationship
Increase in the demand of customer in the changing global market has also
influenced businesses to develop effective understanding to implement digital
technology which helps to increase the customer engagement and their satisfaction
effectively (Camilleri, 2018). Digital technology helps the business organisation top
gain effective information about needs and wants of customers to produce effective
goods and services which increases the potential to gain higher profit margins
effectively. This also helps the business to increase the efficiency to compete by
determining all their market factors which can be used to grow business and attain
core competency in market. Digital technology increases the brand value of
company by increasing the communication of vision with the market customer which
increases their perceived values effectively. It is very essential for Holiday Inn to
adopt digital technology in the customer relation management system which also
increase their experiences and motivate them to become loyal to the company
effectively. it is very essential for the company to analyse all the current market
trends which increases the opportunity for Holiday Inn to grow and increase
customer base effectively.
Operational CRM
Operational Customer relation management system helps Holiday Inn to
increase the productivity of business to increase the sales with the use of digital tools
and internet platforms which also increases the potential to increase profit margins
effectively (Mulet-Forteza and et.al., 2018). Automation of marketing help Holiday Inn

to increase brand value of company to gain higher premiums and make them loyal.
With the help digital technology hospitality industry increases its potential to provide
better services to customers after the sales which increases the market trust and
goodwill. This also helps Holiday Inn to attract more investors to grow business in
market and attain effective opportunity to satisfy their customers effectively.
Analytical CRM
This is the system which is adopted by the top level management in the
business organization to analyse all the factors and to formulate effective polices and
strategies to increase performance. Holiday Inn uses digital analytical tools to
understand the behaviour of users to identify their demands and needs. This also
helps to grow in the positive direction and helps to increase the customer
relationship effectively. With the help of digital technology Holiday Inn is more
effective in storing and understanding customer’s data for the business benefit and
retain customer with effective strategies effectively. This also allows company to
determine the issues in the performance and solve them to develop effective
relationship with customers and provide them high experience with quality services
which improves their satisfaction level.
Collaborative CRM
Collaborative customer relationship management system is when business
provides the personal information of customers to all the operational business units
to increase their performance according to the available resources and gain higher
productivity effectively. This is very essential system which can help Holiday Inn top
become more effective by providing customer personal; information to all the supply
chain to increase their service quality according to needs and wants to increase the
satisfaction of customer and make them loyal in the company. This helps Holiday Inn
to increase the sales and also grow in market by competing in market effectively.
Due to implementation of digital technology it has increased the potential of
businesses in hospitality industry to make informed decisions in low cost to increase
customer relations and make more customer loyal(Elliot, 2016). This has proved to
be more prominent techniques which increase the market share in global market
rapidly.

Lo4
P6. Customer Service Strategies
There are many factors which need to be analysed in order to develop better
strategies and increase the customer service quality and make them loyal effectively.
It is very essential for the hospitality industry to identify all the opportunities to
increase the potential to compete in the market. Core competency is helps Holiday
Inn to increase the customer ser4vive engagement and increase the potential of the
company to grow in the market effectively. There are many strategies which helps
the company to increase the opportunity of increasing customer base and maintain
them kore effective in the organisation effectively.
Seek Customer Feedback
Customers are having different opinions and behaviour for the same products
and it is very essential for hospitality business organization to gather all the
information from the customer’s top become more informed. This increases the
customer services strategies in the organisation to increase the market share of
Holiday Inn effectively. Holiday Inn uses different methods like emails and social
media questionnaire to gather all the information about the perceived values of
services quality and prices rages as it is the most important aspect of hospitality
industry which influence the decision making process of the customers (Camilleri,
Camilleri and Acocella 2018). Holiday Inn also uses customer journey mapping to
evaluate different types of factors which influence customers in the buying process
effectively. This also gives company a better opportunity to become more effective in
providing better services to customers and increase the brand value in the market.
Customer Services Team
Customer service team are the group of period with different skills and
knowledge which increase the customer satisfaction by analysing their behavioural
patterns. It is also very essential for Holiday Inn to become more effective in
providing training to their employees which helps to increase the customer services
engagement in the business and provide high opportunity to increase profit margins
effectively. Company also has the develop effective team which helps to
communicate the vision in the market to position brand in the market effectively.

Holiday Inn also need to use their motivation techniques to form high performance
teams in the company and increase the potential of the company effectively.
Customer relation management
Customer relation management system is very essential which uses different
software to increase the communication with customer and increase the information
of business to increase customer services quality effectively (Kasim, 2016). Holiday
Inn is also using this strategy to gain effective information of their clients and also
provide them tracking of their bookings which increase their satisfaction for their
hotel effectively.
P7. Importance of Customer Service Strategies
Customer service strategies help Holiday Inn to understand the demands of
customers and devise better activities which reduce cost of operation and provide
effective services. With the increase in the demand of tourism due to globalisation it
also has impacted the global tourism business to grow and compete. Feedbacks and
interviews are the direct information strategies which helps Holiday Inn to gain
effective information about all the market trends and making them more effective to
compete in the market effectively. Customer service strategies also help business to
invest in the future customer trends to survive in future competition in the market and
increase the efficiency of becomes more effective. This also help Holiday Inn top
adopt better digital equipment’s which is very essential for the hotel to identify
strategies of competitors effectively (Vellas, 2016). Customer services strategies
also motivates businesses to innovate with effective research and development of
products and marketing techniques to increase awareness of customers this also
increases the education level of customers to make them loyal and improve brand
value in the market effectively. There are external factors like political factors,
economical factors, social factors, technological factors help Holiday Inn to examine
threats and opportunities of the business. By adopting training, it also increases the
healthy working environment of the hotel and increases the communication channel
between all the operational and functional departments to improve customer
satisfaction and financial performance in the market effectively (Khan and et.al.,
2017). As Holiday Inn is mostly focused on budgets seeking customers and this also

increases their potential to attract more customers and develop effective relations to
make them loyal and retain existing customers effectively.
CONCLUSION
This report concludes about how needs and wants of the customers enables
hotel management to identify target market, frame marketing strategies and involved
in other aspects of hotel operations. Report has also concluded how brand value,
quality of service, customer satisfaction and other aspects influence the decision
making of the deferent customer group segment like business customers, travellers
and other customer group in hospitality sector. Customer journey like travel
inspiration, research, booking and other stages has also summarised in this report.
Impacts of customer journey in improving business opportunities by channelizing
marketing campaign, improving customer satisfaction and by other other mediums
has also concluded. Application of CRM in business operations has also
summarised. Different customer service strategies like customer feedback, customer
service team has also analysed to improve the service quality of hotel.

REFERENCES
Books and Journals
Aziz, A. H. A., 2019. Muslim-Friendly Hospitality: An Overview of the Emerging Hospitality
Industry in Malaysia. In Islamic Development Management (pp. 65-74). Springer,
Singapore.
Camilleri, M., Camilleri, M.A. and Acocella, 2018. Travel marketing, tourism economics and
the airline product. Springer International Publishing.
Camilleri, M.A., 2018. The tourism industry: An overview. In Travel marketing, tourism
economics and the airline product (pp. 3-27). Springer. Cham.
da Silva, V. O. and et.al., 2016. Empowerment and Stakeholders in hospitality services-
multiple case studies: Estanplaza, Grand Hyatt and Staybridge. TURyDES: Revista
Turismo y Desarrollo local. 9(20).
Elliot, S.J., 2016. Borderland Tourism as an Indicator of National Travel.
Kabadayi, S. and et.al., 2019. Smart service experience in hospitality and tourism
services. Journal of Service Management.
Kasim, A., 2016. The spirituality of green travel and tourism. International journal of Tourism
& Spirituality. 1(1). pp.116-124.
Khan, S.A.R and et.al., 2017. Travel and tourism competitiveness index: The impact of air
transportation, railways transportation, travel and transport services on international
inbound and outbound tourism. Journal of Air Transport Management. 58. pp.125-
134.
Mulet-Forteza, C and et.al., 2018. Twenty five years of the Journal of Travel & Tourism
Marketing: a bibliometric ranking. Journal of Travel & Tourism Marketing. 35(9).
pp.1201-1221.
Murphy, J., Gretzel, U. and Pesonen, J., 2019. Marketing robot services in hospitality and
tourism: the role of anthropomorphism. Journal of Travel & Tourism
Marketing. 36(7).pp.784-795.
Olson, S. and Poutanen, M. A., 2018. Shelter from the hurry?: Hospitality in Montreal, 1836–
1913. In Architectures of Hurry—Mobilities, Cities and Modernity (pp. 154-171).
Routledge.
Ottenbacher, M.C. and et.al., 2016. Should culinary tourism and hospitality service attributes
be defined as primary tourism drivers? An expectancy-fulfillment grid
approach. Journal of Foodservice Business Research. 19(5). pp.425-440.
Uddin, M. and Uddin, M. S., 2019. Body Massage in the Context of Hospitality. International
Journal of Global Community. 2(1-March). pp.69-82.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Zhang, Y. and Cole, S.T., 2016. The Factor Structure of Hospitality Satisfaction among
Travelers with Mobility Impairments: An Integration of Content Analysis and the
Three-Factor Theory of Customer Satisfaction.