Factors Influencing Consumer Behaviour in Travel and Tourism Industry

This document discusses the factors that influence consumer behaviour in the travel and tourism industry. It explores the impact of digital technology on consumer trends and the stages of the consumer decision-making process. It also highlights the importance of consumer buying behaviour for marketers and compares B2B and B2C decision-making. Additionally, it discusses different approaches to understand the decision-making process.

TRAVEL AND
TOURISM
CONSUMERS
BEHAVIOURS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Factors influencing consumer behaviour...............................................................................1
P2 Impact of digital technology on consumer trends..................................................................2
TASK 2............................................................................................................................................3
P3 Stages of consumer decision making process........................................................................3
P4 Importance of consumer buying behavior for marketers.......................................................4
TASK 3............................................................................................................................................5
P5 Compare and contrast B2B and B2C decision making..........................................................5
B2B.............................................................................................................................................5
B2C.............................................................................................................................................5
P5 Different approaches to understand decision making process...............................................6
TASK 4............................................................................................................................................7
P7 Marketers influencing various stages of consumer decision making....................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism industry works with main goal of providing necessary and desired
experiences or services to the travellers. It is said to be fast growing industry in the world and
providing employment to local communities. Consumer behaviour is conceptual study which
identifies actions and motives for purchasing decisions (Horner and Swarbrooke, 2016). Shift
consultancy was founded in 2015 by Jane Ginnever with the aim to change the manner the world
works. In this report different factors will be analysed that affects consumer behaviour and
attitude and role of digital technology on consumer trends as well. Explanation about consumer
decision process will be given along with its importance for organisation to understand the
process. Differences between B2B and B2C will be compared using examples and approaches
will be evaluated to understand decision making process. Al last, evaluation will be done on
influencing various step of decision process with the help of example.
TASK 1
P1 Factors influencing consumer behaviour
There are different factors that has direct and indirect impact on consumer behaviour and
attitude which influences its buying process. The main factors are as follows:
Cultural: This is one of major factors which is divides into sub-categories and need to
understand completely so that travel and tourism organisation can target consumers basis on
these factors.
Culture: It comprises of belief of individual, role it plays in society, behaviour of society,
values, traditions and customs.
Sub-Culture: It is group of individuals who are characterised to have similar traditions,
values and customs like country, religion, geographic location and racial group (Prebensen, Chen
and Uysal, 2018).
Social Class: Every society has one or more social class which has same buying
behaviour and posses quite similar attitude in decision making. There can be factors like income,
educational level, occupation, etc.
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Personal: There are number of personal factors and most significant in influencing consumer
behaviour and attitude in buying decision. There is need that travel and tourism firms are able to
analyse and target customers on there basis.
Life Style: It comprises of activities, interest and opinions that affect pattern of buying in
an individual which are having different occupations and culture.
Occupation: Such group has average interest in purchasing products or services of
organisation and thus business have distinguish products for such groups (Ukpabi and
Karjaluoto, 2017).
Economic Situations: This influences choice of product an individual will buy according
to their budget and economical stability.
Psychological: There are different factors like motivation, perception, learning, experience,
attitude and belief which affects the buying behaviour strongly. These has impact on thinking,
judgement, emotional feeling, past experiences and motivation that consumers have while
making decision related to buying product or services.
Social: They are divided into family, reference group, role and status which has impact on
buying behaviour of customers. They have different opinion leader, family members, role in
families and status in society to maintain so that their expenses are decided accordingly.
P2 Impact of digital technology on consumer trends
The emergence computer and mobile phone over some years there is drastic changes in
terms of marketing by companies. In travel and tourism industry it becomes essential to
understand the impact technological aspects has created on consumer trends. Some of them are
as follows:
Decreased customer attention: There are number of videos and posts posted on internet
everyday which make it difficult for audience to consume (Pappas, 2016). This making attention
of consumers to reduce and thus it arise need to find a innovative way to attract buyers. For this
companies need to personalised experiences by identifying needs and wants.
Ease of access: Before consumers buying decision were based on feedback from friends
and relatives but these days technology plays important role in influencing attitude of buyers.
Thus it is essential that travel and tourism companies made information of products and services
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available in adequate content so that it can have impact on buying process of consumers. This
can be done making effective presence online and improving image by positive feedback of
customers.
Brand Trust: With the help of technology starting online business has become easy by
minimum investment. While making decision for such businesses buyers mostly rely on trust
audience have on that particular brand. For this travel and tourism need to formulate strategies to
become more trustworthy with the help of content marketing so that brand image can be
improved.
Customer Expectations: Due to changes in technology and many businesses which are
providing similar products has made to increase in customer experience. In case of travel and
tourism travellers want that all their needs are fulfilled by one company so that their experience
can be enhanced (Santos, Veiga and Águas, 2016). This implies that determinant which can be
influence is to meet all travelling demand of guests.
Customer Experience: Due to changes in trend these days customer emphasis more on
increasing their experience rather than expectations. If travel and tourism organisations wants to
survive and have growth in industry then they need to invest in resources that enhance customer
experience so that they become loyal for business.
TASK 2
P3 Stages of consumer decision making process
Consumer buying behaviour is process by which buyers makes decisions related to
purchasing a product or availing services (Gibson and O’Rawe, 2018). There are different steps
by which consumers passes through to ensure that they are effective in their decision, are as
follows:
Need Recognition: This is first step in which consumer recognise that there is need for some
product or service. All the factors are analyse like need of product, necessity or luxury, etc. and
further decisions are made accordingly. In case of travel and tourism need that can arise is may
be of spending family vacations on holiday and thus taking decision related to that.
Search information: The next step is to search all related information regarding vacations
locations, number of days, holiday packages, etc. For this different platforms will be use like
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social media, official websites, commercial news, etc. At this stage consumer might come across
information of various travel and tourism companies which are offering competitive packages
and facilities.
Comparing alternatives: After gathering all the relevant information next phase is to compare
alternatives that are available with customers. In context of travel and tourism industry packages,
facilities and accommodations are evaluated of different companies. This can be done with
feedback present online, families, friends and relatives so that effective planning can be done.
Purchase decision: In this step consumer make decision related to buying product or availing
services based on evaluating alternatives. Best packages with maximum facilities and qualitative
accommodations will be selected by consumer so that they can have good experience in
travelling with family.
Post Buying Behavior: This phase is concerned with evaluating benefits that consumer gained
after spending amount in order to buy product or services. Travel and tourism industry
evaluation is done on basis of accommodations, facilities, experience and satisfaction level. If
satisfaction level was meeting the expectations of buyer than they will become loyal to travel and
tourism company otherwise they will switch to another firm (Models of Consumer Choice,
2019).
P4 Importance of consumer buying behavior for marketers
There are various models that organisations uses so that consumer buying behavior can
be understood clearly and strategies are formulated accordingly. Models provides clear
knowledge about factors that influences consumer buying behavior process. Some of them are as
follows:
Reasoning View Model: This is one of most rationale model which helps in understanding
customer needs and wants by different concept. This model state that without the need
recognition step of decision making process buyers do not demand for product or services (Ruiz-
Mafe, Tronch and Sanz-Blas, 2016). In this stage travel and tourism company should recognise
this step and information related to its product should be attractive and appealing so that buyers
do not search for alternatives.
Passive Model: This model of understanding consumer behavior states that promotional tools
and technique of marketing department have great influence on decision making. It is important
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that travel and tourism companies make strategies while marketing their services effectively so
that it create impact on mind of buyer. Business needs to have completely information regarding
packages, accommodations hotels and other facilities so that buyers decisions can be influenced.
Emotional Perspective Model: This model helps marketers to understand emotional perspective
of consumer towards buying particular product or services. This attachment is reason of usage by
different generation or over long period of time. In case of travel and tourism industry this may
arise due to feedback from friends and relatives or their experiences towards facilities. Thus it is
important that firms main objective should be to enhance customer experiences.
Economic Model: This is one of most common model which helps marketers to understand
consumer and their respective buying behavior (Disegna and Osti, 2016). This provide
information related to prices, purchasing power and substitutes available in market. This implies
that packages should be in budgets of travelers which also provide maximum satisfaction and
enhances their experience for future references.
TASK 3
P5 Compare and contrast B2B and B2C decision making
Differences B2B B2C
Meaning B2B businesses are indulge in
selling products or services to other
organisation.
It involves selling directly to
consumers for their personal use.
Marketing In case of B2B travel and tourism
business uses logical and rational
thinking while making purchase
decision so it is important that
relationships can be build on
credibility and trust.
The main goal of marketing is to
influence customer buying behaviour
so that revenue can be generated and
relationships can be build to make
them loyal for future (Kozak and
Kozak, 2016).
Brand In this case travel and tourism brand
will only help in consideration and
In selling directly with consumers
brand image can influence their
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not for business. In this brand
identity is based on experience of
clients, quality and marketing
efforts.
buying behaviour, loyalty and in
premium pricing policy. This can be
done with making brand awareness
and positioning in market.
Customer service Business buyers are usually
sophisticated and want product or
services that are profitable,
competitive and helps in succession
of operations. Thus it must deliver
necessary information to the
customer only.
Consumer analysed for best prices
and evaluate it with other
competitors before reaching to
buying decision. Thus it is important
that customer service improve
awareness and trust to generate
revenue.
Similarities: There are many factors that are similar for travel and tourism organisations while
dealing with B2B and B2C and thus influences buying decision process in both cases. Some of
them are as follows:
 while dealing with both customer it is important that there is strong customer service so
that their experience can be enhances to make them loyal for company.
 The main objective of marketing in these different field is to improve customer loyalty so
that revenue can be generated and business has sustainability in industry (Font and
McCabe, 2017).
 There is need that sales process is continuous and customer-centric so that organisational
objectives can be achieved.
P5 Different approaches to understand decision making process
There are different marketing research which also helps in understanding consumer
decision-making process for buying, some of them are as follows:
Qualitative Approach: This research method is helpful in collecting data related to behavior,
attitude, trends, beliefs, social group, etc. Thus will help in understanding factors that are related
to personal and psychological elements in buying behavior process of consumers.
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Quantitative Approach: This approach focuses more on mathematical formulas, statistical
tools and numerical data so that understand of quantify factors are done respectively.
TASK 4
P7 Marketers influencing various stages of consumer decision making
It is needed that travel and tourism organisation have strategies so that each and every
step of consumer buying behavior process can be influenced effectively. The
Content marketing: In the era of digitalisation it is important that travel and tourism companies
focuses more on promotional tools and techniques that result in content marketing. In this
complete information should be given on official websites or single link would be provided so
that buyers does not need to access multiple web pages. This will be helpful when customers are
searching information and evaluating alternatives (De Nisco, Papadopoulos and Elliot, 2017).
This factor will have impact on buying attitude and thus important for business to employ this as
strategy.
Communication and language: While targeting different type of audience it is important that
this aspect should be kept in mind. Advertisements campaigns are not only for customers but
intended to be for public as well so that it can create larger impacts. To ensure this it is important
that communication is done with proper channel which has extensive reach. In case of language
it should be according to cultural and diversity so that audience does not that affected by it. This
will have impact on search information stage of process and thus important for travel and
tourism marketers.
Emotional loyalty: This is one of crucial aspect that marketers need to map so that post buying
behavior of consumer is positive and they become loyal for business. While providing services it
is important that company has main objective of enhancing experience and satisfaction level of
customer so that they becomes loyal for next buying behavior decision (Cetin and Bilgihan,
2016). This model is effective for enriching post buying behavior of consumer decision making
process so that loyalty can be build and maintained.
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Thus the factors that are discussed above are effective in mapping different stage of
buying behavior so that travel and tourism companies can influenced effectively. All such will
help in creating impact on various phase of steps which in return generate revenue for company
as well.
CONCLUSION
It can be concluded from above report that travel and tourism industry is associated with
improving travelling experience of guests. Consumer behavior is related to factors like attitude
and beliefs which have direct and direct impact on buying decision. There are different personal,
culture, psychological and social factors which influences customer buying behavior. There are
trends like ease of access, brand trust, customer experience, etc. that are emerging due to
technological impact. Customer passes through five stage model of decision-making before
making purchase or product or service. B2B is selling to another businesses for manufacturing or
production and B2C is selling directly to consumer for personal use, there are differences and
similarities for travel and tourism firms while dealing with them. There are qualitative and
quantitative research method which will help company to understand buying process of
consumer.
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REFERENCES
Books and Journals
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Prebensen, N. K., Chen, J. S. and Uysal, M. eds., 2018. Creating experience value in tourism.
Cabi.
Ukpabi, D. C. and Karjaluoto, H., 2017. Consumers’ acceptance of information and
communications technology in tourism: A review. Telematics and Informatics. 34(5).
pp.618-644.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services. 29. pp.92-103.
Santos, M. C., Veiga, C. and Águas, P., 2016. Tourism services: facing the challenge of new
tourist profiles. Worldwide Hospitality and Tourism Themes. 8(6). pp.654-669.
Gibson, A. and O’Rawe, M., 2018. Virtual reality as a travel promotional tool: Insights from a
consumer travel fair. In Augmented reality and virtual reality (pp. 93-107). Springer,
Cham.
Ruiz-Mafe, C., Tronch, J. and Sanz-Blas, S., 2016. The role of emotions and social influences on
consumer loyalty towards online travel communities. Journal of Service Theory and
Practice. 26(5). pp.534-558.
Disegna, M. and Osti, L., 2016. Tourists' expenditure behaviour: the influence of satisfaction and
the dependence of spending categories. Tourism Economics. 22(1). pp.5-30.
Kozak, M. and Kozak, N. eds., 2016. Tourist behaviour: an international perspective. CABI.
Font, X. and McCabe, S., 2017. Sustainability and marketing in tourism: its contexts, paradoxes,
approaches, challenges and potential. Journal of Sustainable Tourism. 25(7). pp.869-
883.
De Nisco, A., Papadopoulos, N. and Elliot, S., 2017. From international travelling consumer to
place ambassador: Connecting place image to tourism satisfaction and post-visit
intentions. International Marketing Review. 34(3). pp.425-443.
Cetin, G. and Bilgihan, A., 2016. Components of cultural tourists’ experiences in
destinations. Current Issues in Tourism. 19(2). pp.137-154.
Online
5 steps to understanding your customer’s buying process. 2016. [Online]. Available through:
<https://www.b2bmarketing.net/en/resources/blog/5-steps-understanding-your-
customers-buying-process>
Models of Consumer Choice. 2019. [Online]. Available through:
<https://smallbusiness.chron.com/models-consumer-choice-73712.html>
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