Understanding Customers in Tourism Sector

This essay discusses the micro and macro aspects of understanding customer behaviour in the tourism sector and their impact on the industry. It also highlights the importance of understanding customer behaviour for the success of a business.

Understanding customer

Table of Contents
Introduction......................................................................................................................................3
Micro aspect of understanding customer.........................................................................................3
Impact of micro aspects in tourism sector.......................................................................................4
Macro aspects of understanding customer.......................................................................................4
Impact of macro aspects in tourism industry...................................................................................5
CONCLUSION................................................................................................................................6
References........................................................................................................................................7

Introduction
Understanding customer is defined as the key to giving them good service. For giving
good service, a business must deliver what it promises to customer (Gibson and O’Rawe,
2018). To understand customer in market, a business must listen to them attentively whenever
they are in contact. There will be lot of positive results in business for understanding customer in
right manner- first it increases customer loyalty as customer will repeat purchases again and
again and secondly it creates positive word of mouth publicity in market. There are different
ways by which business can understand customer behaviour in market- first business must
contact customer through several mediums in order to understand what they expect from
business, second they should collect and analyse data using customer relationship management
to make relevant decision on that basis (Çakar, 2018). In this essay, a detailed description of
understanding customer will be done in tourism sector to find out what would be micro and
macro aspect which influence the behaviour of customer in tourism sector. At the end of an essay
, a brief conclusion will be given on the basis of relevant data.
Micro aspect of understanding customer
Micro aspects are connected micro environment of business. This environment is in
directly contact with firm and affects day to day activities of business (Font, English and
Gkritzali, 2018). It is a collection of forces and factors that are close to a company and can
influence the performance of company in day to day operations. Different micro aspects of
understanding customer is market are- The company, supplier, customer.
The company has various departments such as finance department, marketing
department, production department, Research and development department and many more.
Marketing department is responsible for understanding customer behaviour market and making
broad strategies on the basis of result. Other department which include manufacturing and
production department should simply follow the strategies laid down by marketing department
and do production accordingly (Garcia and et.al 2019).
Suppliers are the most important part in any organisation because they supply raw
materials to firm which can be used in manufacturing and production of goods. The quality of
raw material should be in good quality for effective production of goods. Manager of an
organisation need to have proper control of supply of raw materials, excessive supply of raw
material than production capacity leads to wastage of resources. Therefore on the other hand, less

supply of raw material then demand of customer in market led to non- fulfilment of demand and
loss of customers in long term (Held, 2018).
Competitors are considered as rival of business. The business must provide better
service to its customers than its competitors. The marketers of business must not only try to
satisfy demand of customer by offering quality products to them but try to achieve strategic
advantage against the competitors by positioning their product strongly in market (Jackson,
2019).
General public are those people who have interest in company's product and service such
as customers who would ensure the success of business in long run in market. Therefore,
production department of business must manufacture products as per public interest which would
ensure success of business (Kastenholz, Eusébio, and Carneiro, 2018).
Impact of micro aspects in tourism sector.
Following are the impact of micro environment in tourism sector are:
Suppliers can make major impact on the performance of tourism industry. Suppliers
need to provide raw materials to hospitality industry in adequate quantity so that manufacturing
of products can be done according to demand of customers. Trends and development can affect
supplies which in turn can seriously affect company's marketing plan (Leri and Theodoridis,
2020).
Different kinds of customers visit to hotel such as business customers and resident
customer those who visit with their families. Therefore, tourism sector must have resources to
manage every kind of customer and their demand which they expect from them like proper
space for sitting, proper service of of waiter and many more. By making these changes an
organisation can lead to rise in revenue. (Pelegrín and et.al 2020).
The location of tourism sector must have all kind of facilities such as gymnasium, parks,
tourist attraction and many more. When customer get such kind of facility, they will definitely
get attract towards to tourism sector which would lead to rise in revenue (Şen and et.al 2018).
Macro aspects of understanding customer
This aspects of business deals with those external factors in which firm has no control.
This might affect the performance of business either in positive manner or negative manner.
Different aspects of macro environment in business are.

Climate condition plays a major factor in determining the success of business in market.
Sometimes adverse climatic condition such as natural disasters can directly impact the
functionality of business. This can cause more disruption to business and unable it to get
insurance. (Séraphin and Nolan, 2018).
Green business policy is another way which can impact the performance of business in
long way. These include several things such as tax credits and incentives, improved
efficiency,healthier workplace and cost savings. Different ways through which business can
practice given policy are by printing less, turning off lights of unused rooms. Reusing items also
reduces waste from plastic packaging. (Stienmetz and et.al 2021).
The another macro aspect for understanding consumer are disruptive force which brings
change in business environment not in positive manner but in negative manner. Nowadays digital
technology is in boom and it creates problem for those business which cannot transform
themselves into digital manner due to lack of knowledge and technical expertise. Therefore it
would create problem for such business and can affect their profitability in negative manner
(Xie, Tkaczynski and Prebensen, 2020).
Income factor also plays a major role in understanding consumer behaviour in market.
Customer with high income have high purchasing power, whereas consumer with low income
have low purchasing power. Therefore, business must have to identify that which income level
consumer they want to target in market. Production of goods done as per income of consumer so
that they can easily it and increase profitability of business.
Impact of macro aspects in tourism industry
Following are the impact of macro aspects in tourism industry are:
Climatic change include several things such as snowcaps melting, coral bleaching,
flooding and rising sea levels, which can cause damaging to tourism sector. Other way by which
tourism sector can indirectly affect such as quality of experience, adverse perception are some of
the extreme events which can negatively affect the overall performance of tourism sector.
Under green policies, several laws cover under given policy such as provide healthier
working environment to customers those who visit in hotel. By providing better facilities and
following all the rules and regulations. Tourism sector can improve their goodwill among
customers in market by which several customers will visit to restaurant. Hence, this would lead
to rise in revenue of hospitality sector.

In Disruptive factors, it can be said that there are certain factors which has negatively
affect the performance of hotel industry in market. Earlier before digitalisation people were used
to visit hotel for bookings but after launching of different websites all these work can be done by
their mobile or laptop. So hotel which are not tech savvy and has not transformed their business
into online mode, has negatively impacted because customers those who prefer to do their
booking via website or application will not prefer such hotel those are not digitally transformed.
Therefore it will result in downfall of profits of those hotel which are not transformed their
operations digitally.
Income factor has major impact on tourism industry. By giving rooms to different
customer as per their affordability this has increase the demand of tourism sector. As every level
of customer can do their booking in hotel and select room as per their budget. This has increase
the demand of tourism industry and led to rise in profitability of business(Zarezadeh,
Benckendorff and Gretzel, 2019).
CONCLUSION
On the basis of above essay, it has been concluded that understanding customer
behaviour plays a very important role in success of business in market. This helps business to
manufacture their products according to demand of customer in market. There are lot of aspects
such as micro and macro have been discussed to find out their impact on business of hospitality
industry. Macro factors which has impacted industry are- climate change, green policies,
disruptive and income factors. Moreover, there are micro aspects also which has also impacted
hospitality industry are- climate condition, green business policy, disruptive factors and income
factor. Therefore, business needs to study these two factors very carefully in order to identify
behaviour of customer in market and make their production accordingly.

References
Books and journals
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