Factors Affecting Consumer Behaviour in Hospitality

This report discusses the factors that affect consumer behaviour in the hospitality industry, including health and safety, age, cultural upbringing, and disposable income. It also explores how consumer trends are changing due to digital technology and the importance of customer journey mapping for Hilton Hotel marketers.

Hospitality Consumer
Behaviour & Insight

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
P1 Factors that Affects Consumer behaviour in Hospitality Context..........................................2
M1 Analyse different factors that influences consumer behaviour are changing and driving
trends in hospitality......................................................................................................................3
P2 Explore consumer trends change due to the impact of digital technology.............................4
P3 Consumer Decision Making Journey Map.............................................................................5
P4 Importance of Customer Journey Map for the Hilton’s Hotel Marketers..............................6
L03...................................................................................................................................................7
P5 Difference in Decision-making between B2B and B2C.........................................................7
P6 Approaches of market research and methods of research for consumer decision-making
process.........................................................................................................................................8
P7 Market influence different stage of tourism decision-making process..................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality Management can be defined as the study of hospitality industry in respect of
managing it’s operations and services in precise manner. This report is properly based on the
case study of Hilton Hotel in the context of managing it’s customer behaviour. Conrad Nicholson
Hilton established this hotel in year of 1919. It offers hotel and resorts services as product to the
customer. It is located more than 580 countries and associated with wide tourism organizations
to offer worldwide hospitality services. In this report will discuss about management of
consumer behaviour in the hospitality sector. Furthermore, this report will emphasize over
investigating about different cultures personal and social factors that influences consumer’s
behaviour in hospitality sector. It will also include consumer decision-making journey and
consumer map. This report will highlight about importance for the marketer to map path
associated with consumer behaviour in making hospitality decision-making. Furthermore, it will
discuss about different aspects of customer’s decision-making in the context of B2B and B2C in
this report.
LO1
P1 Factors that Affects Consumer behaviour in Hospitality Context
There are numerous cultural, social, personal and psychological factors that enhances
consumer behaviour in respect of hospitality industries. Prominent factors that affects
consumer’s behaviour are mentioned below as following manner:
 Health and Safety: It is one of the most essential psychological and personal factors
that directly affects consumer’s behaviour in the context of hospitality is that it is safe for
their personal health and safety or not (Kustos and et.al., 2019). It is evident by the
current situation of hospitality industry across the whole global due to Covid-19
pandemic, nothing is more important for the consumers except safeguarding their own
safety and health. In this state, guests prefer those hotels whereas they can get 100%
guarantee about health and safety instead of visiting those hotels which provides room
facilities at affordable price with good location rather giving guarantee about health and
safety.

 Age: It is another psychological and personal factor that majorly affects consumer
behaviour in the context of hospitality. Especially older people are highly hesitant to
travel and stay at new and massively people occupied hotels due to personal and
psychological issues i.e. fear, health issues, physical strain, language barriers etc. On the
other hand, younger peoples are more motivated to explore new facility at different
destination places without anxiety and fear due to this older people have to suffer more.
Thus, age is considered one of the most affecting factors for consumer behaviour with
respect of adding valuable services for hospitality operations with older people of
population who are highly motivated to select traditional hotels, where they can get
chance to see cultural and traditions, while younger demographics like to choose new and
best destination hotels in urban places as their hospitality service purpose (Altinay and
Taheri, 2019).
 Cultural upbringing: It is a social, psychological, personal and social factor that plays
significant role in effecting consumer behaviour in hospitality market. Guests belongs to
conservative or religious family then they brought up conservative values due to this
often select traditional hotels as opposed other new well-established hotels which have
good quality hospitality services like bars, swimming pools, nigh club parties etc., which
they may consider to be against of their personal value and culture with which they were
led up. On the other hand, some guests from liberal families, who keeps open views of
the global are more motivated to select hotels that have wide range of hospitality
services, have vibrant party, good quality food as these guests never feel that these are
clashed with their upbringings and personal cultural values.
 Disposable Income: It is considered one of the most prominent socio and personal factor
that also affects consumer behaviour in the context of hotels, all guests have to plan their
visiting place, accommodation, expenses of hotel accordingly their budget.
Analyse different factors that influences consumer behaviour are changing and driving trends in
hospitality
Social, personal, cultural and psychological factors are supported in influencing
consumer behaviour and attuited which are playing significant role in leading change in
hospitality sector such as due to concern of health and safety, most of the consumers are not
preferring to stay in hotels but now hospitality sectors have taken some initiatives like online

booking, Robot butler with voice assistance, digital map etc. these new trends adaption supports
hospitality companies to ensure their guests that they are safe in their place and will enable to
provide safeguarding and health and safety to their guests (Dlačić, 2017).
P2 Explore consumer trends change due to the impact of digital technology
From last decades, adoption of digital revolution and internet has widespread across the
world which have led advanced changes in consumer insights and trends due to advancement in
existing digital technology, most of them have been proved profitable for the business in
hospitality sector i.e. Hilton Hotels. These digital technologies have brought prominent change in
consumer trends as resulted it increases consumers, profitability and productivity for the business
in hospitality industries which are mentioned as follows:
 Online Booking: It is one of the most essential consumer emerging change due to the
impact of digital marketing tool. With the support of this technology, consumers of the
hospitality industry now become able to book travel airlines, trains, accommodations and
hospitality hotel for staying purpose. This new trend has completed transformed the
operation of the hospitality industry, as now consumer can perfectly make plan for
tourism operations and books the necessary trains, books hotels at the touch of button.
Thus, new consumer trend simplifies the previous complex process which had consumer
call up to hotel’s authorized person to book hotel, call and book transportation etc.
Current digital technology allows guests to book their preferences at the press of a button
effectively.
 Digital Maps: It is another consumer trend that obtains through advancement in Global
Positioning System. It provides accurate reliable maps and it is free of costs for the
visitors or guests i.e. guests are now able to select foreign place without requiring any
external experience or knowledge of the local hotel. Now people do not have rely on
local people who navigates through places whereas language can be barrier for them.
With the support of digital map, guests can easily reach designated hotel without
requiring any external support (Ettinger and et.al., 2020).
 Translating Devices: Now guests or tourists have the option to buy several dedicated
devices that have capability to translate foreign language in to a language which tourist or
guest can directly understand through internet. These digital translating devices allows

guests to have fun of foreign hotels unafraid about language barrier, allows them to
communicate with other who may not know the language of tourist.
 Mobile as a Guest Door Key: Due Covid-19 every guest wants they do not have to touch
any external things in hotel through which they might be came in contact of virus. Due to
this most of the hospitality companies like Hilton Hotel has provided facility to the
customer that they can use their smartphone as a door key. For example, Hilton hotel
provides a smart lock apps in their phones which allows its guests to unlock room
through their mobile phone (Buhalis and Sinarta, 2019).
LO2
P3 Consumer Decision Making Journey Map
A hotel Journey Map is a visual map that portray the process and decision-making
through which guests and tourists achieves their hospitality goals and objectives. The decision-
making journey map is designed for the consumers of Hilton Hotels which is mentioned below:
Figure 1: Customer Journey Map
Travel Inspiration: The first phase for every consumer of the Hilton Hotels is to make them feel
a wish or need to visit a destination and stays at Hilton Hotels. Usually consumers are inspired
for the travel and takes the procure the services of the Hilton Hotels by applying variety of
methods i.e. conversation with other, advertisement and marketing campaigns through which it
constantly reminds about traveling and relaxing for tourism destination. Marketing managers of

Hilton Hotels perform different operations of marketing towards inclining it’s guests to travel on
it’s location and books Hilton for their needs (Mohammed and Al-Swidi, 2020).
Research: When Hilton Hotels become successful in first phase like inspires their customer to
take decision of travel and book hotel. The next phase in the journey is research over the
different travel destinations, Hotels, luxury, location, food, environment and culture etc. all
considers significant factors which plays vital role in customer’s decision -making process. In
this phase, the consumer research over the various booking packages, discounts etc. that offers
by Hilton Hotels in term of making informed decision about their accommodation’s preferences.
Booking: It is third stage of the consumer’s journey map wherein consumers makes a decision
about the booking of appropriate hotels and packages on the basis of prior research which they
conducted in previous phase. Budgetary constraint is one of the major factors in this phase which
helps consumers to decide to take buying hotel services within financial budget which they have
sated.
On properly: It is one of the essential phases in the customer journey map such as consumer
stays in the Hilton Hotels and makes their personal decision on the basis of metrics i.e. value for
money, satisfaction rate, convenience etc. Hilton Hotels always try to give better and valuable
services to the consumer so that it influences them to revisit hotel on the basis of metrics (Merli
and et.al., 2019).
Post Stay: It is last stage of consumer journey map and consider crucial stage because at this
stage, consumes takes decision about Hilton’s services like it deserves the loyalty of the
customer for the future visiting purpose or not. Hilton Hotels encourage it’s guest to share their
views regrading hotel services which they have received through staff and asks them to give
some suggestions so that it can be improved level of offered services.
P4 Importance of Customer Journey Map for the Hilton’s Hotel Marketers
It is essential for the marketer of Haltom Hotel to understand and analyse overall journey
map of all of its customers. With the Journey Map, marketers get lots of advantages such as:
Improved Marketing: This consumer journey map allows marketers of Hilton to increase
quality of existing marketing strategy as they could improve insights into the decision-making

process of consumers during the whole journey process. Such insights and attitudes in the
consumer’s decision-making process can productively increase the operations and marketing
strategy of Hilton Hotels like to be more specified for the needs and requirements of it’s targeted
customers.
Customer Service: This customer journey map will also support marketers to determine issues
and problems that the customer faced while their current journey. Thus, with this map, Hilton
hotel can easily address the issues and problem of customers, in order to offer better customer
service to their future guests which in exchange will retail loyalty of customer towards brand.
Increase Customer base: Marketer of Hilton Hotels can achieve insight of targeted audience
needs, wants and demographics by understanding and evaluating the customer journey map. By
using this information in their marketing strategy, marketer can easily enhance number of
customers for the Hilton Hotel (Buhalis and et.al., 2019).
Marketers respond to the decision-making process
From the above discussion about marketers respond over customer’s decision-making process
can be analysed that customer journey map of consumer is the best approach to understand needs
and expectations of customers through which company can improve level of services in it’s
hospitality company (Litvin, Goldsmith and Pan, 2018). As same marketers of Hilton Hotels play
vital role with the support of customer’s journey map such as it improves customer’s buying
behaviour by briefly explain it’s customer’s about hotel’s services, location and claims for 100%
security etc. Thus, marketers help Hilton company to establish good customer base.
LO3
P5 Difference in Decision-making between B2B and B2C
There are various key differences between decision-making process of business to
business and business to consumer organization which are mentioned below as follows:
Length of Decision-making process: The time duration that takes for hospitality consumers to
make decision over purchasing or hiring product or services of business to consumer (B2C) is
quite less in the hospitality industry rather than business to business(B2B) wherein length of time

duration that takes by business to purchase or hire the services which offered by other business in
the hospitality market. The reason behind is that hospitality consumer do not undertake various
distinct factor as a part of decision-making like business organization undertakes before taking
buying decisions. For example, customers choose the services of Hilton Hotels on the basis of
their budget and room preferences, on the other hand, Hilton Hotel select to hire employees for
their marketing operation or their management purpose on the basis of their past experience,
efficiency and level of customer services that they have provided in other organizations to the
customer while offering their services. Hilton Hotels always hires only those candidates who
keep ability to stand over their commitment then they justify that the person can contribute in
improving brand value and reputation of Hilton Hotels in hospitality sector (Aydin, 2020).
Communication: The communication of decision-making process is completely different in
B2V and B2B organizations. For example, B2B organization makes decision, it is highly grateful
to communicate the decision and it’s values to their customer business in order to build healthy
and productive relation, On the other hand, organization runs it’s business under the B2C model
are not needed to communicate the change which going to evolve in it’s business policies to it’s
customers instead of this, it is only try to simplify the process through it can interact with it’s
customer and they can freely communicate with business organization. Thus, it is one of the
major impact on the decision-making operation of both business organizations i.e. B2B and B2C.
With the B2C model, company has more flexibility in the decision-making operations. There is
an example of Hilton Hotel to understand this fact such as when the external agency hires by
Upper management of Hilton Hotels to lead change in it’s organizational policy in respect of
recruitment of new employees, Then management have to express reason behind of taking this
decision to the Hilton. In that state Hilton access that leading change is comfortable or not but it
do not have to communicate with its customer about the decision (Osman and Nelson, 2019).
Upper management of Hilton Hotels only ensure that level of management services is maintained
towards it’s guests or not.
P6 Approaches of market research and methods of research for consumer decision-making
process
Market research and approaches in hospitality sector understand the consumer’s decision-
making process that can summarize in the following manner.

 Customer feedbacks: It is one of the major key technique to understand the consumer’s
decision-making process in the hospitality industry. Hilton Hotels can apply this
approach to access the consumer’s decision-making process in the hospitality industry.
This feedback will include all key aspects which can increase the consumer decision-
making. Customer can share their views accordingly their preferences in the decision-
making for selecting a specific hotel. It is an effective approach that is channelized by
most of the hotels to understand the customer’s decision-making process.
 Primary research: It is another key method of research for the Hilton Hotel that allows
organization to conduct the whole research by it’s own efforts. During the market
research, it can gather feedbacks of customers, approaches the customer over the different
social media sites and internet and applications involves in the primary research. With the
support of this approach organization can ask questions over the decision-making process
which can be projected in further strategies (Pourfakhimi, Duncan and Coetzee, 2018).
 Secondary research: It is one of the times saving approach because to conduct research in
respect of customer’s decision-making process in the hospitality market is considered
quite time-consuming approach. With the support of this approach, company can utilize
information from those researches which have already conducted over the hospitality
sector to analyse the fundamentals of customer’s decision-making process. It is one of the
cheapest tools to conduct market research i.e. Hilton do not need to put immense efforts
for conducting particular market research over consumer’s decision-making. It can use
internet for determining all key areas behind the decision-making process of customer
while choosing hotel and taking hospitality services. Thus, this research is called time-
saving and money saving mode of market research (Kandampully, Zhang and Jaakkola,
2018).
From the above discussion over the approaches can be denoted as the key approaches to the
aspect of consumer’s decision-making in term of selecting a specific hospitality company.

LO4
P7 Market influence different stage of tourism decision-making process
Marketers can induce different stages in the tourism decision-making journey in the
hospitality sector that can be summarized in the following points such as:
 The awareness Stage: It is a primary stage that involves in customer’s decision-making
journey in the hospitality industry. This stage denotes the time when a consumer requires
a holiday to maintain their health and mental wellbeing for a specific period of time. In
this stage, marketers offer different holiday packages to the customer with support of text
messages and emails for attracting customers to buy hospitality services and visit
location.
 Research Stage: It is the second stage wherein marketers run various marketing
campaigns to attract customers at the research stage. It is considered one of the essential
stages that involves in customer’s decision-making process. In the marketing campaign,
marketing representative itself provides complete information about the hotel and
destination. For example, marketers of Hilton Hotel provides drives different marketing
campaigns over the key marketing channels and social media to attract customers for
buying it’s services.
 Booking and Stay Stage: At this stage, marketers provides attractive discounted holiday
packages and other staying benefits i.e. free meals for a single time in a day and other
attractive offers with booking coupons to attract customers towards hotel. For example,
Hilton hotel provides discounts and free services such as breakfast, boundary etc. another
key benefits that attracts guests while booking hospitality services (Dewnarain,
Ramkissoon and Mavondo, 2019).
 Post Stay Stage: It is another essential stage in the customer journey in the hospitality
industry. Marketers implements different strategies i.e. solving customer’s problems, free
cab facilities, attractive welcome at the hotel and key approaches to attract the guests.
Marketers targets to develop a brand image and guest’s loyalty by offering attractive
facilities at this stage also ensures smooth travelling experience. For example, marketers
at Hilton Hotel offers cab facility, grievance section and other key benefits so that guests

can enjoy it’s stay in the hotel. It is the key stage that involves in customer’s journey in
the hotel as it enables organization to increase the brand value in the market.
The above discussed approaches denote about marketers’ techniques to attract customers at the
different stage of decision-making process and customer’s journey in the hotel.
Critically evaluate marketers influences each stages decision-making process
There are different approaches of marketers that uses by marketers of Hilton to influence
each stage of customer’s decision-making. But the major drawback of the marketer’s approach is
that it requires high level of marketing expertise and reviews checking at each stage of decision-
making then Hilton company can receive profitable outcomes from marketers’ efforts. Another is
that these marketers’ approaches are quite time-consuming and cannot skip a stage otherwise it
makes overall approaches ineffective. So, it is important for the marketers to keep attention on
each approach then they can influence decision-making process of customers at each stage
(Rosenbaum, Otalora and Ramírez, 2017).
CONCLUSION
It has summarized about different social and cultural factors which influences customer’s
preferences in hospitality sector. Internet has increased the hospitality experience of guests in
hospitality industry as customers can book it’s stay over the internet today and various other key
trends become an essential a part of the hospitality industry. In the case of B2B, hotel tries to
deliver the best service to attract corporate guests. Primary and secondary research analysis uses
by Hilton hotel to analyse customer’s decision-making process in hospitality industry. It also has
been summarized different marketers’ approach i.e. facilities, advertising, solving issues and
other key approaches in the different stage of the customer journey in Hilton Hotels.

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