Tourism Consumer Behaviour and Insight

This report analyzes the factors influencing consumer behavior in the tourism industry and the impact of digital technology on consumer trends. It explores the consumer decision-making journey and the importance of mapping the path for marketers. The report also discusses the differences between B2B and B2C decision making and how marketers can understand and analyze consumer decision making in the tourism sector.

TOURISM CONSUMER
BEHAVIOUR AND INSGHT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Different cultural, social, personal and psychological factors that can influence the consumer
behaviour and attitude..................................................................................................................3
Impact of digital technology on changing consumer trends........................................................5
PART 2............................................................................................................................................6
Consumer decision making journey Map....................................................................................6
Differences in Decision Making Between B2B and B2C...........................................................8
Importance for marketers to map path for purchasing and understanding consumer decision
making for tourism sector............................................................................................................8
Different approaches of market research...................................................................................10
Influence of Marketers During the Various Stages of Tourism Decision Making Process.......11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The consumer behaviour and insight is an extremely critical aspect in the tourism industry
as it is the customers itself that are the mainly targeted revenue generators of this service industry
and it is essential to understand their desires and preferences (Lin and et.al., 2019). TUI is an
international organisation offering tourism services in multiple countries. The current report will
analyse the different factors that influence the decision making of the consumers related to
tourism choices and the impact that consumer trends has will also be analysed. The report will
further identify the entire decision making journey of tourisms service and further explore the
importance that mapping the purchase path has for the marketers in this industry. Differences
between the B2C and B2B will be analysed and further the different approaches of market
research will also be analysed. Lastly the different stages of the tourism decision- making
process will be presented along with specific examples.
MAIN BODY
PART 1
Different cultural, social, personal and psychological factors that can influence the consumer
behaviour and attitude
Consumer behaviour is the purchasing behaviour of the users. In other words, it is an
observational activity that helps to understand that which factors influences purchasing decision
of customers or group of people in the market place (Choe and Kim, 2018). There are various
factors that impacts consumer’s behaviours such as cultural, social, personal and psychological
etc. factors are described as follows:
 Social factors: It is further subdivided into some segments i.e. reference group, family
and roles & status. These are major factors that enhance customer’s buying behaviour and
motivate them to be stay with a organization for long time (Hamouda, 2018). There has
an example of Marriott hotel which deeply analyse these social factors and offers branded
quality products and service to the people and maintains their family status.
 Cultural factors: It includes buyer’s culture, subculture and social class etc. influences
consumer’s behaviour. Culture is the main part of society and essential for person needs
and behaviour. The culture on buying behaviour is varied from country to another
country (Wang and et.al., 2018). So, it is essential for tourism organization to analyse
different group of culture or countries as well. This is similar to the case of social class
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where every society has some form of social class and each maintains their decorum.
Social class is not only related to disposable income of individuals but also there are
other factors i.e. wealth, education and occupation etc. So, this factor also responsible for
consumer’s buying behaviour. Culture is the combination of subculture in which people
keeps difference to each other in term of region, values and language (He and Huang,
2018). These are important cultural factors that are responsible for influencing
consumer’s buying behaviour in the market. There is an example of TUI travel and
tourism organization which deeply analyse all cultural factors and offers such kind
products and services that meets customer’s objectives and influences their buying
behaviour.
 Personal factors: These factors include age and life cycle stage, occupation, financial or
economic situation, self-concept and responsibility etc. gives values to the customer and
boosts their purchasing behaviour. For example, when individuals get desirable products
and services as per their taste, income and status that automatically encourages them to
buy hospitality or travel services from the organization (Femenia-Serra, Neuhofer and
Ivars-Baidal, 2019). There has an example of Hilton that offers travel and tourism
services to the customer. It provides all products and services based on personal factors
so it has good brand image in the tourism industry.
 Psychological factors: There are four factors i.e. motivation, learning and attitude or
belief etc. influences customer’s buying behaviour. When consumers get desirable or
value-based services, this automatically portray good image in customer’s mind for the
brand. TUI designs its products and services on the basis of psychological factors so that
it enables to offer value-based services to them (Lim, Soutar and Lee, 2016).
Significance of consumer behaviour: It is very essential for the organization to understand that
what enhances the purchasing decision of the user and it can decline their purchasing decision as
well. Deep understanding of customers’ behaviours supports marketer to decide that how to
display its products such that it impacts on consumer’s buying behaviour (Kennedy and Kmec,
2018). TUI is the travel agency which designs all factors by analysing all factors i.e. social,
psychological, persona and cultural factors and encourage customers to buy hospitality or travel
services effectively.
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Impact of digital technology on changing consumer trends
The increased digitalisation has indeed affected the overall consumer decision making and
their preferences as well regarding the choices that they are making.
 Recognition technology: This technology is increasingly being adopted in tourism and
hospitality industry where visitors are able to check in and check out by using face
recognition or by the finger print system as well (Varkaris and Neuhofer, 2017). The
Marriott Hotel China has already been using the facial recognitions systems and this has
become a huge attraction point for the visitors there. This is a favourable technology for
both customers and the companies as it increase the data security and minimises the
chances of theft etc. but it also gives a wider access to people regarding the personal data
of the companies can be generated.
 Sustainable holidays have now become an increasingly emerging trend amongst the
tourists where the companies advertise about their packages that are specifically designed
to minimise the impact that tourism activities have on the nature (Pantano and et.al.,
2019). Tourism companies like TUI are presenting the online sustainable packages which
are mostly viewed on the digital platforms i.e. websites of the company etc. and attracts
the majority of the tourists now-a-days in this manner.
 Virtual reality: The trend of virtual reality where the usage of 360 degree images, videos
and sounds makes the viewer feels as if they are going through the experience is the
revolutionary measure in the tourism industry. The companies such as Amadeus are able
to showcase the local tourist spots, the reception areas and room of the hotel, virtual
recreation of the famous places that helps the traveller to digitally live the complete
experience before actually having it (Del Vecchio and et.al., 2018). This helps them in
their decision making as well i.e. whether they should visit a place or not. However, this
is disadvantageous for the tourist companies as many of the potential visitors enjoy the
digital experience and feel that they have actually visited the place. Thus instead of
increasing the sale, this might tend to affect negatively.
 Robotics: Robotics is anther evolution that digitalisation has brought with itself where
there has been increased use of robots in the tourism and hotel industry. They are there
for performing all the front office tasks effectively and are also enabled to recognize
different speeches and to speak in turn accordingly (Ukpabi and Karjaluoto, 2017). The
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Hilton Hotel chain has been using this technology and there has been dual impact where
the customers have not been able to establish human contact but the innovative
technology still draws eyes.
Hence it can be critically analysed that different technological aspect have different impact
on the consumer decision making in the tourism industry as well and hence affect the overall
decision making.
PART 2
Consumer decision making journey Map
A journey map is the visual display map that portray the process and decision-making
through which a traveller or tourist meets their tourism goals and objectives. TUI develops
decision-making journey map for it’s consumers as follows:
Travel inspiration: TUI initially creates wish or needs in consumers for travelling or visiting
destination and stay at TUI. It takes numerous actions in their procedures to inspire consumers
for travelling such as marketing campaign, advertisement etc. helps to aware constantly about
relaxing and travelling in tourism destination (Antikainen, Lammi and Paloheimo, 2017). The
marketing campaigns of the TUI are more effective to boot it’s customers to by travel services
from the TUI and visit new locations.
Research: When consumers are inspired to hire travel services then TUI takes second phase into
it’s consumer’s decision making journey. With this phase TUI researches upon numerous travel
destinations, hotels, culture, food, environment, luxury etc. etc. are essential factors that improve
consumer’s buying behaviour while researching phase of journey. TUI offers various booking
package facilities to the customers and aware them through marketing campaign so that they can
take accommodation needs from TUI as per their budget.
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Figure 1Consumer's Journey Map
Booking: It is third stage of consumer’s journey whereas needs to make them informed decision
about the hotels and it’s booking, and packages on the basis of research which is conducted in
prior phase. In this phase, price factor plays essential role in consumer’s decision-making
process. As consumer would like to book only those hotels and package which comes in their
budget. While TUI high concentrate on the price factors and offers different type of hotel
services based on customer’s budget. Thus, TUI inspires consumers to buy services for the travel
and accommodation perspective.
On property: It is an essential phase in the consumer’s joinery whereas consumer stay in TUI
travel agency and takes their personal decision based on the numerous metrics i.e. satisfaction,
value for the money, travel experience, convenience and product services etc. these metrics are
important parameter for tourism organization because it influences consumer’s decision-making
for the hotel or it’s services.
Post Stay: It is last stage in consumer’s journey map whereas consumer takes decision to revisit
hotel or not through prior discussed metrics. It is essential stage for the TUI because it helps to
generate loyalty in customers for the services by offering value-based services. Therefore, TUI
takes feedbacks from it’s consumers about it’s services which offered them while staying in hotel
and requests them to give their suggestion that can be improved further (Ortbal, Frazzette and
Mehta, 2016). Thus, TUI gives values to the consumer and builds good relationship with them in
the organization.
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Differences in Decision Making Between B2B and B2C
The decisions in an organization’s processing differ from business to business and business
to customers in the market which is going to be discussed in the further report. The organization
has to make effective decisions for the future because the competition in the market is increasing
which has to be controlled so that the organization can have a better functioning.
 Communication
All the changes and processing has to be transparent in a B2B setting of organization so that
the customers are aware of the products improvement and that is going to get them loyal to the
organization. In the case of a B2C there is no requirement for informing the customers about all
the processing and information to be told to the customers. This factor in B2C getting a sense of
flexibility in functioning in the market which can make the organization get a competitive
advantage for a long run in the market. For example when there is an external management force
which is being recruited in the organization for decision making then that information has to
reach all the members of the hotel (Alizadeh and et.al., 2018). But in the case of B2C there is no
need to inform anyone which is a very time-consuming process and direct actions can be taken
by the organization. It is very important that there are changes which are adapted and decisions
are made quickly in the market since the competition is increasing which has to be controlled.
 Length of decision-making
The length of decision-making process is quite long in B2B organization as compared
B2C.the reason behind is that B2B organizations does not have right to take decision directly
because in these organization to or more partners works together, so individual cannot take
decision. On the other hand, business 2 consumer has short time duration in decision-making
process. For example, consumers take buying decision from the TUI based on their budget and
accommodation requirement while TUI recruits staff member for their management based on
their delivery skills. TUI is highly success in travel agency in the world due to it’s effective
decision-making process.
Importance for marketers to map path for purchasing and understanding consumer decision
making for tourism sector
Mapping a path for purchasing and understanding consumer decision making is highly
important to develop strong fundamental decisions within tourism industry for TUI which is
vividly changing and undergoing huge transformation. The procedure to analyze how purchasing
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decisions and consumer decisions are effected within market enabled to program out new
paradigms and factors which enables in building competitive edge benchmarks for long term
viable position into tourism industry ( Tan, Lee and Ooi, 2017). The TUI working goals are
factored onto various paradigms where the yielding synergy of higher competition can be further
built by bringing on new rational customer oriented services and factors of tourism which will
yield best services and more quality integrated factors of services. Mapping out purchasing
patterns will enable data to bring out strong analysis onto various factors through which strong
synergy shall be built onto working parameters. The purchasing parameters are focused to bring
on strong factors of dynamic working paradigms and keenly focus onto innovative and new
relative working goals which will enable the business to grow effectively based on various new
decisions for new performance metrics. Data and paths by which customers are easily looking
upon purchasing the products and travel plans will enable company to develop and work onto
relative models and paths to bring on positive synergy of technological advancement. The TUI
company being one of the most goodwill attained and high rational brand developed within
tourism and hospitality industry aims to be working with the changing business segments and
rational working segments where the role is to work onto new parameters (Camilleri, 2018).
Mapping out way for marketing and looking upon paths to bring on positive synergy for
higher technical advancement shall be one of the most important goal onto which TUI, can
frame its long term goodwill among consumer market share highly developing with changing
perspectives of time. The consumer purchasing behavior is highly important to develop long
term goals of profit margins ad work onto data for gaining strong effective analysis onto higher
levels of work advancement changing within tourism and hospitality industry. TUI aims to bring
on strategic management goals where the rational synergy is towards gaining stronger working
factors, leverage new technical advancement onto factors of innovative marketing and strong
higher yield onto new productivity factors for gaining larger capital advancement factor. The
tourism industry is engulfing new changes and creative factors of customers and clients
customized tourism plans where TUI is also one of the biggest brand who aims to work with
targeted business plans and implement various business positions onto new scale of services. The
company plans to be active onto social media channels, productive marketing patterns and
functional working activities which will highly develop strong rational synergy of goodwill,
higher dynamic revenue patterns (Sigala, 2017). These factors enable us to program out all
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factors and parameters which are highly relative to bring on positive factors of rational
development, which are not only customer oriented services but are highly driven with latest
data.
Different approaches of market research
TUI can follow the different approaches that involves primary and secondary method of
market research. Bothe the research approaches are among the key approach used for conducting
marketing research. Research involves collecting various information that can support
organisation in conducting operations.
Primary research: TUI can follow the approach of primary research to conduct the market
research in order to expand the business outcomes. This is the important practice that TUI can
follow to understand the decision making process of the customers of organisation. In this
method company follow the precise approaches and methods like taking feedbacks from
customers, utilising internet, taking interviews of customers and other key techniques (Gray,
2016). All these approaches are used in this method to conduct the market research. This method
of market research requires personal efforts of the organisation to conduct the market research.
All outcomes of research collected in these methods are reliable in nature as company has put
personal efforts to conduct the market research. Outcomes of this research are reliable in nature
and also support company in getting personal interactions with the customers. This research
requires quality among of time and financial resources of the organisation to conduct the market
research.
Secondary research: Secondary research is also another key approach to conduct the market
research in order to analysis about the decision making process of te customers in travel and
tourism sector. TUI can follow this approach to conduct the research. In this method of market
research company utilises the sources of already conducted research over the decision making
journey of the customers to collect the required information in respect to the consumer decision
making journey (Bertrand and Hughes, 2017). Company channelizes all the previous researches
projects about the customer decision making journey in travel and tourism sector. This research
saves plenty of time of the organisation to collect the necessary information about the decision
making journey of the customers in travel and tourism sector. This is an effective practices
companies follow to conduct the research as it do not requires much investment of time and
financial resources of the organisation to conduct the market research over the customer decision
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making journey in travel and tourism sector. Internet is a huge medium to conduct the market
research via secondary method of market research.
Influence of Marketers During the Various Stages of Tourism Decision Making Process
Throughout the entire tourism decision making process engaged by the consumers within
tourism industries, there are several ways through marketers can further help and enhance the
decision making operations of tourists and consumers to make better decisions that also help the
tourism business increase its productivity and profitability within the tourism markets. The
marketers of TUI can influence consumer behaviour and decision making process throughout the
tourism decision making process in the following ways:
Awareness Stage: The first stage of tourism decision making process relates to consumers
becoming aware of touring a location for personal, recreational or professional reasons. During
this phase, the TUI marketers can provide potentially interested customers with email and text
messages in order to attract the potential customers to interact and engage with TUI services and
convert them to financially transact with the tourism organisation (Papatheodorou and Pappas,
2017). This allows for the TUI marketers to attract potential customers during the initial stage of
the decision making process and increase their customer base.
Research Stage: This is the second phase of the tourism decision making process in which the
consumer researches on the target location, tourism facilities etc., in response to his need to
travel either for personal or professional purposes. During this stage, the TUI marketers can run
different marketing schemes and campaigns in order to attract customers. The TUI marketers can
operate their marketing campaigns through social media platforms, online websites, emails etc.,
and provide all the relevant information about the services offered by TUI to its customers to
potential targets in order to engage and interact with them and convert them to making the
financial transactions with TUI business.
Booking Stage: During this stage, the consumer has thoroughly researched upon his targeted
destinations and chosen his accommodation preferences within the tourism industries. TUI
marketers can even influence customer behaviour during this stage of the tourism decision
making process by providing their customers with valuable discounts, packaged deals and
additional offers in order to attract them to interact with the services offered by TUI and make
the financial transaction with TUI. These marketer efforts help towards increasing the overall
customer base, market share, productivity and profitability of TUI within tourism industries.
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Stay Stage: This is the stage in the tourism decision making process during which the customer
stays within the TUI hotels for their recreational or professional purposes (Stylos, 2019). During
this phase, the TUI marketers can remind the customers of all the various hotel services they
have access to in order to effectively satisfy all the needs and requirements of the customers and
gain their long term loyalty.
Post Stay Stage: After the customer stay has completed, the TUI marketers can offer them
additional vouchers, VIP memberships, discounts for future interactions with TUI, in order to
keep satisfying their long term needs and requirements and gain their loyalty, which is
immensely important towards the sustained successful operations of TUI within tourism
industries.
CONCLUSION
This report has projected about different aspect of the customer decision making process
in travel and tourism sector. In case of travel and tourism sector customers assess the facilities
organisation is serving against the operation and also they analysis the services as per the
expectation they posses. Customer’s trends are always changing due to digital technology. As the
digital technology has played a major transformation in the entire business environment.
Company can conduct the primary and secondary research to analysis the customer decision
making journey in travel and tourism sector. This report has also projected different stages of
customers that allow marketers to influences the customers in travel and tourism.
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