Importance of Customer Needs and Wants in Hospitality Sector

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

market. For example high brand value of Holiday Inn Company allows company o engage
with all potential customers in market.
Service and product quality: Quality of service and products also an important tool
influence the decision making process of the entire customer segment. 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 teh 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 Holiday Inn 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 all potential customer segment of hospitality organisation.
Companies utilise different mediums such as social media, internet and other relevant
mediums to engage with all potential customer segment in respect to products and services
of company (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 Holiday Inn 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 Holiday Inn 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. Service sectors 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 Holiday Inn 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. Holiday Inn Company has started serving services like free breakfast
and other key services that has channelized into high customer satifsction.

LO2
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.
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.

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.
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.
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