Importance of Customer Needs and Wants in 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........................................................................................................................................ 5
Customer experience map..................................................................................................5
P4. Customer touch point create opportunities for the hotel...............................................7
Influence of Digital Technology in Customer Relationship..................................................7
Customer Service Strategies..............................................................................................9
Importance of Customer Service Strategies......................................................................10
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 is an important factor behind the success of business
organisation. Assessment of the needs and wants of target customer drives management of
Holiday Inn 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 Holiday Inn 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 Holiday Inn 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 Holiday Inn 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 Holiday Inn
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 Holiday Inn 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 Holiday Inn 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 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