This report evaluates the customer behaviour and insights for tourism business organisation Radisson Hotels. The Radisson Hotels is a global chain of luxury hotels which operates from its headquarters in Minnesota, USA.
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TOURISM CONSUMER BEHAVIOUR AND INSIGHT
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TABLE OF CONTENT INTRODUCTION..........................................................................................................................3 MAIN BODY...................................................................................................................................3 P 1 Factors Affecting Consumer Behaviours in Tourism Context..............................................3 P 2 Changes to Consumer Trends Because of Digital Technologies...........................................4 P 3 Stages of consumer decision making journey.......................................................................5 P 4 Importance for marketers to map a path of consumer decision-making...............................6 P 5 Differences in Decision Making Between B2B and B2C....................................................7 P 6 Approaches of market research and methods of research for consumer decision making process..........................................................................................................................................8 P 7 Marketers influence different stages of tourism decision making process............................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Tourism is the strategic process of travelling to different places either for personal or professional reasons. It includes diverse acts and processes by which a tourist spends time away from their respective homes ether for the purposes of relaxation, exploration, recreation, pleasure or for professional purposes (Belias and et.al., 2017). This report evaluates the customer behaviour and insights for tourism business organisation Radisson Hotels. The Radisson Hotels is a global chain of luxury hotels which operates from its headquarters in Minnesota, USA. Radisson Hotels is a division of the parent organisation Radisson Hotel Group and operates various separate individual brands within the hospitality industries of the world such as Radisson Collection, Radisson Blu, Park Inn by Radisson, Park Plaza, Country Inn and Suites etc. First RadissonHotelwasbuiltinMinneapolis,Minnesotain1909,whichhasbecomethe headquarters for the business organisation. MAIN BODY P 1 Factors Affecting Consumer Behaviours in Tourism Context Within tourism context, there are several individual personal, psychological, cultural and social factors that tend to influence and have an impact on the behaviour of consumers within the tourism industries. The most significant of these factors are as follows: Age:A major psychological and personal factor that happens to influence the decision making and behaviour of consumers within the tourism industries is that of age. Populations belonging to the younger sections of the demographic are more inclined to fearlessly explore new urban tourism destinations and places irrespective of cultural social or language barriers present for them within the destination (Kim, Lee and Jung, 2020). In contrast, older population of the demographic are comparatively hesitant of the cultural, social, religious and linguistic barriers that are present in new tourism destinations and prefer to choose tourism destinations that are more spiritual, peaceful and quiet in nature as opposed to their younger counterparts who fearlessly prefer new, busy urban cities for their tourism destinations. Income:Another major personal and social factor that tends to heavily influence the behaviour of customers within the tourism industries is that of the disposable personal income that they happen to possess. This factor plays a great influence on customer behaviour as practically all decisions made by a consumer within the tourism industries effectively depends upon the amount
of disposable personal income that they possess and are willing to spend. Consumers who are in possession of significant disposable personal income are able to choose their preferred tourism destinations, accommodations and do not have any economic factors restricting their consumer behaviour within the tourism industries, while consumer who are economically restricted have to choose tourism destinations, accommodations etc., based on their allocated budgets and their behaviour is heavily influenced by the amount of disposable income they have to spend. Safety and Health:The safety and health factor is also a major psychological, personal and socialfactor thatsignificantlyinfluencesthe behaviour of consumers withinthe tourism industries (Woodside, 2017). Tourists are never inclined to visit places that puts their safety and health at risk and most tourists are willing to travel only to destinations that are comparatively safe and secure. Destinations that can safeguard the safety and health of tourists are always more popular as tourism destinations, with health and safety having a major influence on the consumer behaviour within the tourism industries. P 2 Changes to Consumer Trends Because of Digital Technologies There have been several major changes to consumer trends because of the widespread adoption of the internet and the innovation of advanced sophisticated digital technologies many of which have had a significantly positive impact on the businesses in tourism industries such as Radisson Hotels. These are as follows: Digital Maps:The major advancements in global positioning systems and the widespread adoption of the internet in most countries around the globe has now made it increasing easy for touriststobecomeself-reliantfortheirnavigationneedswhenvisitingtonewtourism destinations and places (Belias and et.al., 2018). These accurate and reliable digital maps are available to tourists free of costs which has significantly contributed towards changing customers trend, as tourists are more inclined than ever to visit new locations and places without having to worry about navigation, which was a major hurdle prior to digital technology. Translating Devices:Another major change in consumer trend through digital technology is due to the innovation of digital devices that are capable of translating foreign languages into tourist’s local languages in real time, effectively rendering the linguistic barriers between the tourists and their tourism destination to be completely null. As these devices are capable of translating foreign languages, tourists are now more inclined to travel to exotic new tourism destinations
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unhindered by the linguistic barriers that would have previously made them hesitant towards travel to foreign locations out of fear of not being able to effectively communicate with other due to linguistic barriers (Scuttari and Pechlaner, 2017). This translating digital technology has had a major impact on the consumer behaviour and has resulted in a change in consumer trends within tourism industries, as now tourists are increasingly travelling to new foreign travel destinations with linguistic barriers posing almost no restrictions on their operations within the tourism industries. P 3 Stages of consumer decision making journey Tourism journey map visual map which is indicating the process and decision making of a tourist so that their objectives and goals of tourism can be achieved. Radisson hotels journey map of decision making is as follows. Travel inspiration First stage is that the customers or tourists have to feel the need of travelling any destination only then they will opt for a hotel (Saverimuttu and Varua, 2017). There are a lot of ways through which the customers can be informed about the services and the quality of the hotel which are by marketing campaigns, advertisements, conversation with the hotel staff directly, etc. The marketing departments of Radisson are good at inspiring the customers to visit their property from time to time which is a great factor. Research It is after the customers get inspired to take up the services and travel with this hotel then they look at the other factors like culture, food, environment, destinations, luxury, etc. All these factors have to be present in the hotel so that they can make the customers have the best of experience in the organization and get in a lot of customers. The customers research on the offers, booking packages, and other factors which can influence the decision making of the customers in Radisson. Booking The third stage is when the customers make a decision after researches they have made in the hotel and the surroundings which are going to make the organization have a better reputation. In this stage there is a focus on the budgetary factor which the hotel is providing to the customers which is going to make the customers change their decisions to stay in this hotel.
On property This is a very important factor for customer journey because it is from a personal decision of various factors of them which is experience, satisfaction, convince, value for money and etc. The improved and better services which Radisson is providing to the customers that is going to make the organization have a better customer base and market share (Ourahmoune, 2016). Post stay At this stage the customers take a decision for themselves if they would want to stay in the hotel or not and if the hotel will be able to maintain their loyalty with the customers or not. There are feedbacks taken by the hotel so that there are improvements according to the needs and demands of the customers from time to time so that the brand image can improve and loyalty of the customers as well. Decision Making Process Due to rapid change in the taste and preference of customers in hotel industry it is very essential for business hotel to analyse decision making process of customers in order to understand their needs. This helps to increase their satisfaction and make them loyal to the company effectively. This helps Radisson hotel to gain better opportunity to compete in the market and increase its profit margins effectively. Identification of Needs The first stage of decision making is identification of needs and wants of customers to develop effective marketing strategiesand increase the potential of business organisation effectively. Gathering Relevant Information After identifying needs and wants of customers Radisson has to conduct effective research in market to examine demand of different products and services of hotel which increase their satisfaction. Identify alternatives It is very essential to determine potential information which are useful for Radisson hotel in order to increase its brand image in the market. In this stage hotel identifies different suppliers and services channels which can improve customer experience. Analyse evidence
Afterfindingalternativeshotelhastocomparethecurrentperformancewithpast performance to gain better understanding about decision. Radisson hotel provides better services to their customers in past which helps to increase the brand value and improve customer base to increase their satisfaction effectively. Select from Alternatives Radisson needs to select tehe most effective alternative which increases the efficiency of business to grow and increase customer engagement level. Radisson has also developed digital technology in the rooms to increase customer experience. Take Action In this stage hotel has to develop effective marketing strategies which helps to integrate with the decision making process of Radisson hotel and improve its performance to attain better opportunities effectively. Evaluation of Decisions Radisson uses different methods like customer feedbacks, employee interaction to analyse the productivity of decisions made by the management to increase customer engagement. It is very important for hotel to measure the performance of strategies to attain higher profit margins effectively. P 4 Importance for marketers to map a path of consumer decision-making It is very important for Radisson to analyse and understand the journey map of the customers so that they can have a better functioning for themselves. Customer service The importance of a journey map is that the management of the organization will be able to understand the customers effectively and the problems and issues which the organization is having can be improved (Talpur and Zhang, 2018). This is going to make the customers get loyal to the organization which is a very essential factor and make the organization have a strong base for them in this industry. Improved Marketing The journey map is going to help the organization understand their customer base in the market effectively which is a very essential factor for the organization. The strategies and measured decisions have to be changed in the market of the organization because of the change
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in trends of the customers and the competitors which are coming up in the market so that the company can maintain their standards in the market. Increase customer base The marketing department of Radisson will be able to plan and take the right decisions for the organization so that they can target the customer’s needs, wants and demands from the organization. The number of customers is going to increase if the organization uses this analyses effectively in the company and so will the revenue generation of Radisson. The reputation and brand image of the organization is being well maintained and the company will get in loyal customers in the organization. P 5 Differences in Decision Making Between B2B and B2C There are a lot of differences between the decision making processes of business to business and business to customers in the organization which is going to be discussed in the further report. Communication The communication is different in a B2B and B2C because in a B2B when a decision is made it is importance for the company to communication with the customers so that they are updated about everything and the company will be able to have a better functioning. In B2C there is no need to inform anyone about the changes or the decision which are taking place in the organization so that the process is simpler for the customers. B2C gets a more flexible functioning and operating in the market which is a great advantage for the organization. Example is when there is an external management force which is hired in the company so that they can make the decision they are bound to inform everyone working in the organization but in Radisson they are not bound to inform anyone and make the changes and decisions directly and implement it so that the complexity in lesser in the organization (Liang and et.al., 2017). Length of Decision making The time consuming is also lesser in the organization when there are decisions which are taken in a business to customer organization. In a hotel industry it is not essential for the organization to be able to communicate to the customers about all the changes which is going to be time consuming. The important policies and services decisions are explained but not all the
information is given to the customers of Radisson which is a great advantage for the organization in this competitive industry. P 6 Approaches of market research and methods of research for consumer decision making process. In process to analyse about the customer decision making in respect to choose a hospitality organisation researches are conducted by company. Following methods are available to conduits the market research in hospitality sector.. Customer feedbacks:Customer feedback can be stated as the primary technique to conducts the market research. Hotel Radisson can utilise this method to conduct market research over the consumer decision making in hospitality sector. Company can involve all key areas behind the decision making process of customer for choosing a specific hospitality organisation. Company can channelize different questions over different aspects of hotel such as room facility, food and other features in feedback form (Mariani, Styven and Ayeh, 2019). This method also consisted limitations as company can approach such peoples who are the existing customers of company. At the time customer leave the hotel management can ask to fill the customer feedback form to assess the staying experience of hotel. On the basis of the experience customers will provide a complete description about the entire experience of stay in a hotel. Customer feedback form has supportedRadissonHotelinimprovingitsservicesonthebasisofthecustomer recommendations in the feedback form. This is an effective technique to collect information as customers provide all their views based on the real experience of staying in the hotel which allows customer to highlight negative points associated with the services of hotel. This also allows hotel to establish a long time relationship with customers. This also improves the customer loyalty in respect to the hotel. With the support of this approach Hotel Radisson has polished its brand image all around the globe. Primary research:Hotel Radisson can conduct the primary research over customer decision making process Management of Radisson Hotel can channelizes multiple methods such as taking feedbacks of customers, approaching customers over internet and different social media sites and application involves in the primary research. In this approach company ask different question with potential customer or travellers all across the globe. In primary research all existing customers of company who stays in hotel on a regular basis and all potential customers are
addressed to collect the information. This allows hotel management to collect the required information about te customer decision making process in case of hotels. Secondary research:This is a time saving approach of conducting research in respect to customer decision making in hospitality sector. In this method Hotel Radisson can utilises the existing researches over customer decision making in hospitality sector. This technique is an effective method to conduct research as over the period of time the customer decision making in case of hospitality sector is not much changed (Dias and Phillip, 2016). This is a cheaper technique to conduct the market research as company do not need to put any efforts for conducting a specific market research over consumer decision making. As the hospitality sector caters similar services so this can be an appropriate technique of research. Radisson hotel can use internet to collect necessary information about the decision making process. In this technique company will use all recent conducted market researches over customer decision making in hospitality sector. This technique will provide a clear opinion in respect to customer decision making journey in hospitality sector. Input, process, output model Input, process, output is a key consumer behaviour model suitable for the hospitality sector. This model covers all insight about the consumer decision making process in hospitality sector. Input:Input involves different part of marketing effort company put to achieve its objectives. IN this part marketing team assess its products, price, place and promotion techniques. What are the key basis that can support company to attract customers with the support of its product, price, place and promotion. In hospitality sector products like luxury rooms, yoga services, guide services, bars and other products that attracts customers (Tontin and Bento, 2020). All such products offer by Radisson Hotel. Price involve analysing the suitable price tat can attract the target customers of company. Place and promotion involve identifying all different promotional tools like social media, search engines and promotional tools that can attract customers. Process:Process is concerned with the buying process of customers. In case of hospitality sector customers are attracted towards the services offer by hotel. In order to attract the customers company try to serve all its services in the most affordable price structure.
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Output:Output involve buying decision, choice of product, choice of brand and key factors. Consumers are keen towards choosing the hotels that carry an impressive brand value. Product offers by company also a tool that involve in customer decision-making journey. The above mentions approaches can be indicated as the key approaches to understand the consumer decision making in respect to choosing a specific hospitality organisation. P 7 Marketers influence different stages of tourism decision making process Marketers can influence different stages in the tourism decision making journey in hospitality sector can be summarises in following points. The awareness stage:This is the first stage involve in consumer decision making journey in hospitality sector. This is the time when customers feel that it requires a holiday. Marketers give different offers to customers with the support of text massages and by emails to attract customers towards a associated destination. The offers given at this stage play an important role to attract customer as this stage allows marketers to attract customer even at the initial stage of the customer travelling journey. Research stage:Marketed run different marketing campaigns to attract customers at the research stage. This is a crucial stage involves in customer decision making journey. Marketers provide complete detail about the hotel and the destination in the marketing campaigns (Park, Krishnan and Ha, 2019). For example Radisson Hotel drives different marketing campaigns over social media and other key marketing channels. In this stage customer collect information about all hotels and restaurants available at the destinations. Marketing campaigns allows company to attract customer at the time of research about the destination. Booking and stay stage:At the time of booking stage marketers give effective discounts and other staying benefits such as free meals for a single time in a day and different attractive offers along with the booking coupon to attract customers towards the hotel. For example, Radisson Hotel give discounts and free amenities like boundary, breakfast another key benefits that attracts customers at the time of booking. In this stage hotel management focuses on allowing different kinds of staying advantages in the hotel. Post stay stage:This is also the crucial stage in the customer journey at the hospitality sector. Marketers use the strategies like solving customer’s issues, attractive welcome at the hotel, free cab facilities and key approaches to attract the customers. This stage plays an important role for
the company to create a brand image in front of the customer. Company focuses over improving the staying experience of customer (Lashley, 2018). This is more like attracting customer with the support of its services. Company give emphasis to improve the service quality at each stage of customer stay in hotel. For example Radisson Hotel management take of each and every requirement of customers once the customers enters in the hotel to stay. Company focuses over giving the best staying experience to its customer at this stage. The above mentioned approaches indicate about the marketers techniques to attract customers at each stage of decision making process and customer journey in hotel. CONCLUSION Based on the findings of the report, it can effectively be concluded that gaining an understanding of consumer behaviour and insights is of immense importance to the sustained successful operations of Radisson Hotels. The report identifies different social, cultural, personal and psychological factors that influence customer behaviour in tourism industries. Then the report assesses the impact of digital technology on tourism consumer trends. The report also analyses stages of decision making in tourism consumers and maps a customer journey path for Radisson Hotels. The report also analyses the importance of customer journey maps for marketers of Radisson Hotels. Then the report compares the hospitality decision making process in B2C and B2B using tourism examples. Further, the report evaluates how market research is conducted by Radisson Hotel and the methods used. Finally, the report analyses how marketers of Radisson Hotels can have an impact on tourism decision making citing examples.
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