Consumer Decision-Making in the Hospitality Industry: A Report

This report provides a comprehensive analysis of consumer behavior within the hospitality industry, focusing on the decision-making processes of consumers. It examines the stages of the consumer journey, from need recognition to post-purchase evaluation, using the Travelodge hotel as a case study. The report explores the importance of mapping consumer paths for marketers, highlighting the influence of factors such as marketing mix, technology, and heuristic factors. It compares and contrasts the decision-making processes in Business-to-Business (B2B) and Business-to-Consumer (B2C) contexts, including different marketing research approaches. Finally, the report investigates how marketers can influence various stages of the hospitality decision-making process to enhance customer satisfaction and drive business success. The report also includes an introduction, conclusion, and references.

Hospitality Consumer Behaviour
and Insight
1

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
LO2..................................................................................................................................................3
P3 Stages of people decision making journey and map path to purchasing in hospital industry 3
P4 Importance for markers to map a path and knowledge about consumer decision making.....4
LO3..................................................................................................................................................6
P5 Compare and contrast the difference of hospitality decision making process in context to
B2B and B2C...............................................................................................................................6
P6 Different approaches and methods of market research in B2B and B2C context..................8
LO4..................................................................................................................................................9
P7 Howe marketers influences different stages of hospitality decision making process............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Hospitality consumers behaviour is related to way to treating which is done by hotels and
travelling industry in order to attracts customers and increase organisational productivity. It has
been defined that needs and wants of people are not same where managers are trying to deliver
kind of products and services that helps to increase the profitability (Altinay and Taheri, 2019).
The concept of hospitality industry is connected with service industry that involves
transportation, lodging, hotels, restaurants, theme parks etc. that helps to attracts number of
customers. Moreover, they get feedback from people and bring changes in their restaurants and
companies that helps to make higher profits. If organisation is providing better quality of
services then it can build good brand image and high profile all over the nation. This report is
based on Travelodge that is leading hotel in UK, providing accommodation and breakfast
services to customers, business people and others who comes here and getting travelling
services. This report covers ability to map a path, form of research to understand influences on
hospitality decision making and different stages of decision making process in hospitality
industry effectively.
LO2
P3 Stages of people decision making journey and map path to purchasing in hospital industry
Consumer decision is main activity which means how an individual make decision
regarding particular product and services. If a person need something they firstly it visit the
market, get various option, compare with others, select best one out of various alternation then
make payment before buying and get the product which are involved in consumer buying
process. In absence of following this process customers cannot make right buying decision.
Therefore, it is effective process and stages which are used to make right buying decisions. in
context to Travelodge hotel, customer are making buying decision by following such steps that
are defined below:
 Need recognition – Before buying something from the market there is require
investigation of market in open market place which helps to provide products and
services accordingly. In context to Travelodge hotel, customers are going to visit where
they require a hotel to get accommodation and food services so they are searching such
kind of services that are providing by chosen organisation (Gibson and Parkman, 2018).
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Searching and gathering information – When client recognise their needs and wants
then they further collect the information regarding products and services. This step is require to
be done by completing first step which helps to select the best product and services effectively.
For instance, customers who wants accommodation and food services at the time of visiting
other place they gather information regarding Travelodge hotel which helps to improve the their
decision making process. Customers get information what services are providing by such hotel
and how they can avail this (Altinay and Taheri, 2019).
Evaluating alternatives – This is another phase in which is required to be done before
finalising the product and services. Herein, various options are identified by customers which
helps to get more chances to select the best one. Such as customers in context to Travelodge
hotel, get inquiry and compare products and services with other hotel which helps to clear all
doubts which have in customer’s mind.
Purchase – When customers have compared the services with others and make decision
to buy it they it need to pay amounts which proceeds to purchasing process. This is important for
customers to pay the amount for availing services and make sure that they have selected best
products. Such as customers in relation to Travelodge hotel, who are searching best hotel make
payment online in order to purchase services effectively (Jauhari, 2017).
Receive – When payment is done by customers then they make decision to receive the
products and services which helps to get the good experience and good image. Such as customers
who have done the payment of Travelodge hotel services get the services in fixed period of time
which helps to improve the their personal experience. Such customers helps organisation by
creating mouth publicity and sharing their feedback which helps to attain the organisational goals
and objectives.
Post purchase – Now people wants after purchasing services that can help further
selection and attracting more people to buy products accordingly which make feel good to
customers. People who have availed services in relation to Travelodge hotel are giving their
feedback and share experience level which helps to maintain the good performance.
P4 Importance for markers to map a path and knowledge about consumer decision making
In competitive environment, mapping a path is important for organisation where marketers
are playing important role who understand the needs and provide better quality of products and
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services that can influence customers and increase profitability. It has defined that consumer’s
behaviour are changing according to fashion, status, time and lifestyle which is important to get
understand by customers so products and services can be provide accordingly and increase
organisational profitability. Marketers are one who understand the requirement of changing
behaviour and provide them modified product which can satisfied them and increase business
effectiveness.
For example, In Travelodge hotel, marketing manager visit the market and contact with
customers to know what types of products and facility they want in their organi9sation so
customers feel satisfied and happy to obtain this and make further decision which helps to
increase higher productivity and brand image all over the nation. Descriptions of various factors
are as defined which can influence marketers such as:
Marketing mix – The meaning of marketing mix is combination of various factor such
as product, price, place and promotion which affects marketing and customers. Markets suggest
their organisation what product and services they should provide at what price and place that can
helps to increase the organisational profitability. This factor is used by marketers of Travelodge
organisation who understand the requirement of passengers who are interested to travel and
provide products and services. They offer accommodation, staying and food facility to customers
accordingly which attracts customers and influence them to buy services. The manager of such
organisation set the price of their services according to income group of customers and place
where they wants which helps to take the competitive advantages (Moro and Rita, 2018).
Influence of technology – technology is growing rapidly which is using by organisation
in order to run their business and taking competitive advantages. This is important for marketers
to introduce new technology and services that can influence customers and set their mind to
purchase services from this organisation. In context to Travelodge, marketing manager are using
new technology such as booking online, checking availability, facilities, robot service, online
transaction, payment and cancellation which attracts customers and encourage people to avail
services effectively and impacts positively on business performance. With the help of this factor
manager organise their activities and run business effectively. With the help of this transportation
cost, and time cost can be reduce which influence customers to buy services from such
organisation.
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Heuristic factor – This is consider as simple strategy or mental procedure that is used to
make decision by finding out best solution to complex problems. Some heuristic factor involves
availability, consistency, control heuristic and probability which helps to improve the
organisational productivity and profitability. For instance, In Travelodge, there are some targeted
customers who wants luxury services and security which is providing by managers in order to
retain them for long period of time and meeting with customers’ needs effectively.
This is important for marketers to focus on customer needs and wants and deliver that
kind or products and services which can help to maintain the high productivity. the manager of
Travelodge need to focus on marketing mix in which they identify what people wants and how
they can be satisfied that improve performance. Heuristic factor is those factor which uses to
attracts customers and use new technology that can help to deliver the best quality of service by
comparing with others.
Four views in hospitality decision making
Economic view – This is related to economical factor where products and services are
provided by income level of customers. This is suggested to Travelodge management to focus on
this pint and offer hotel services at reasonable cost.
Passive view – In this view, products and services are selected on the basis of
promotional basis. Such as customers of Travelodge hotel are selecting services on the basis of
promotional basis which helps to select the best services.
Cognitive view – On the basis of interest and observation customers select hotel and
other services which helps to get good experience and feedback (Olya and Tümer, 2019).
LO3
P5 Compare and contrast the difference of hospitality decision making process in context to B2B
and B2C
Decisions are considered as main aspect of business organisation where it is done by
management to run their business and increase organisational profitability. In hospitality
industry, decisions are taken by managers in context to B2B and B2C who are selling their
products and services effectively and earning higher profits. In Travelodge, managers are having
good relations with other travelling agency and others which helps to run their business. On the
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other side, business concern is having direct relations with customers that helps to understand
needs and wants which helps to maintain good performance and increase business performance.
The difference between B2B and B2C decision making process are as defined:
Particulars B2B B2C
Meaning This mean business concern deals
with other business concern
which helps to run a business and
increase profitability.
This means a organisation is
providing products and services
by dealing with customers
directly and maintaining good
performance.
Purchasing The purchasing decision is taken
by business concern because they
have direct contact with
distributors and agency.
Therefore, Travelodge has direct
relation with other travelling
agency who has tie with this
company that helps to take the
purchase decision in less time.
This means buying decision is
taken by managers by contacting
with customers that improve
organisational productivity and
profitability. In Travelodge,
managers have direct relation
with customers and they provide
products and services
accordingly.
Finding out needs The marketers of Travelodge
understands the needs and wants
of other business and give efforts
to fulfil their requirements which
helps to run a business effectively
(Samoggia and Riedel, 2018).
Needs and wants of customers are
find out by markets in Travelodge
which helps to provide products
and services accordingly and
maintain high productivity and
profit margin. They get inquiry
what type of services wants
people wants and how they can be
satisfied effectively.
Decision related market
size
In B2B decision making process,
markers cover small size of
business which helps to introduce
products and services accordingly
In this, Management classifies the
marketplace on the basis of
sector, location and small size
which helps to adequately fill the
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increase business effectiveness. needs.
Focus They develop good relationships
with other companies to gain
advantage in the coming years.
They concentrate mainly on
delivering high quality customer
support.
For this reason, marketing research in the sense of B2B and B2C is carried out by Travelodge's
management, which helps to create the right investment decision for the procurement of goods
and services (Wan and Chan, 2019). Marketing research is the important factor which is done by
Travelodge organisation in context to B2CB and B2C as:
In context to B2B – Travelodge hotel ahs contacts with other agency in travelling and
other organisation which can help organisation to provide information regarding Travelodge and
its services and also provide offers packages that helps to increase the business performance.
This activity is done by manager of such organisation who keep good contacts with agencies and
other business and increases organisational performance.
In context to B2C – Marketers are important who maintain direct relationship with
customers by using different sources such as online marketing, you tube, news channel, celebrity
advertisement etc. all are used by marketing department which helps to increase the
organisational performance and profitability. The manager of organisation also understand that
what people wants and know their income level that helps to introduce that kind of hotel
services.
P6 Different approaches and methods of market research in B2B and B2C context
Marketing research is the longer concept which is done by people who have good
knowledge about marketing and running their business in order to increase profitability. This
tells that what is going to in market and what people wants that helps to provide products and
services accordingly. In Travelodge, managers are visiting the market in order to know current
trend implement plans in their company that maintains good performance. This involves two
methods to researching the market in context to B2B and B2C are as defined:
In context to B2B – Qualitative method is used in context to B2B where products and
services are delivered to one business to other. This involves theoretical data which is presented
in the form of sample representation, survey, observation that helps to maintain the business
effectiveness. For instance, management of Travelodge are using sample survey and researching
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method that helps to get the information about needs of other business. Management are using
Pareto principle which is used to get the information and maintain the good performance. In this
they uses skill set which is required in conducting the research and make plans accordingly. In
Travelodge, marketers are required data handling, writing skills, mathematical and collection
skills that helps to gather and manage information. In research methodology they are using
questionnaire and observation research. Moreover, In B2B research, the market size is small
which is use to provide information and run business effectively. They are using tele depth
interview in which messages, chatbots etc. which are use to maintain the information and provide
products accordingly (Bharwani and Jauhari, 2017).
In context to B2C – This involves quantitative method which is used to gather the
information and run their business effectively. The manager of Travelodge Hotel are using
Pareto principle which uses to collect the information as they are having technical, management,
coordination, that helps to gather information accordingly and running business effectively.
There is requirement of larger size maker in which managers interact with customers get their
needs in order to provide information and products accordingly (Sthapit and Jiménez-Barreto,
2018).
LO4
P7 Howe marketers influences different stages of hospitality decision making process
Every organisation is running their business and increasing profitability with the help of
marketers who are performing different types of activities and function in order to attract people.
Market manager are those people who have knowledge about people’s wants and set their mind
to purchase the particular products. These are playing an important in consumer decision making
process. For example, an organisation is going to introduce something new which people do not
have information to use and benefits of such product. In that situation marketers are one who
maintain good relations with customers and provide them information as well as benefits that
encourages them to buy. If customers do not have full information then they do not make
decision to buy. Therefore, it has defined that manager in relation to market are those individuals
who understand requirement of people and introduce kind of product and services in certain
period of time. There are different states of making decision which bare influenced by marketers
of Travelodge organisation that are as explained:
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Need recognition – In hospital industry markers are playing vital role as they are
surveying regarding demand of people which can be complete by taking interviews. For
example, the markets of Travelodge are using cognitive learning approach that is mental
process theory used to know the needs and wants of people. In this, they provide pick up and
drop facility to customers and increasing productivity.
Search – This process influences marketers in which they make their official websites
that helps to provide all mandatory information and clients get it by visiting the websites. For
instance, marketers of Travelodge are updating information regarding package, discount, facility
and other important information which influences people and make right decisions (Dlačić,
2017).
Evaluation of alternatives – This is related to behavioural learning theory which is
used to judge and observe the activities. This influenced marketers in hospitality industry as they
bind customers for long period by offering variety of product and services. For instance,
management of Travelodge make plans by offering special discount, packages and others at
reasonable rate as compare to others which helps to select the best options (Jauhari, ed., 2017).
Purchase decision – This is ending phase of decision making where marketers get
complete their activities by attracting and influencing customers by offering variety of products.
For instance, marketers of Travelodge provide complete details to customers that directly
increase organisational productivity level by increasing number of passengers effectively (Verma
and Chandra, 2018).
For example, The marketers of Travelodge conduct the market analysis in order to know
the needs and wants of people which they expects from travelling organisation and get
information at what packages they are ready to obtain it. They share information and get
feedback from customers that help to bring changes accordingly and share with HR and
operation department then products and services are provided accordingly that can helps to make
right business decision with the help of marketers who are playing important roles.
CONCLUSION
From the above report it can be concluded that How emerging technology impacts market
trends are examined so that business can introduce them to meet client needs effectively.
The stages of customer decision-making are analysed in detail to allow more changes for
better performance. Different stages are used by people to make the buying decision that
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helps to select best product by comparing with all. Marketer scans the complex environment
so that internal working style adjustments can be made. Through this set targets and targets
can be accomplished in competitive world of cutting throat.
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REFERENCES
Books and Journals
Altinay, L. and Taheri, B., 2019. Emerging themes and theories in the sharing economy: a
critical note for hospitality and tourism. International Journal of Contemporary
Hospitality Management. 31(1). pp.180-193.
Gursoy, D., 2019. A critical review of determinants of information search behavior and
utilization of online reviews in decision making process (invited paper for ‘luminaries’
special issue of International Journal of Hospitality Management). International Journal
of Hospitality Management. 76. pp.53-60.
Bhushan, S., 2019. Design thinking in hospitality education and research. Worldwide Hospitality
and Tourism Themes.
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.
Bharwani, S. and Jauhari, V., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing
and Consumer Behavior (pp. 159-185). Apple Academic Press.
Sthapit, E. and Jiménez-Barreto, J., 2018. Exploring tourists' memorable hospitality experiences:
An Airbnb perspective. Tourism Management Perspectives. 28. pp.83-92.
Dlačić, J., 2017. Book review: The Routledge Handbook of Consumer Behaviour in Hospitality
and Tourism (Edited by Saurabh Kumar Dixit). Tourism and hospitality management, 23(2),
pp.297-299.
Jauhari, V. ed., 2017. Hospitality Marketing and Consumer Behavior: Creating Memorable
Experiences. CRC Press.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Verma, V.K. and Chandra, B., 2018. An application of theory of planned behavior to predict
young Indian consumers' green hotel visit intention. Journal of Cleaner Production. 172.
pp.1152-1162.
Moro, S. and Rita, P., 2018. Brand strategies in social media in hospitality and
tourism. International Journal of Contemporary Hospitality Management.30(1). pp.343-
364.
Olya, H.G., Bagheri, P. and Tümer, M., 2019. Decoding behavioural responses of green hotel
guests: A deeper insight into the application of the theory of planned
behaviour. International Journal of Contemporary Hospitality Management.
Wan, L. and Chan, E., 2019. Failure is Not Fatal: Actionable Insights on Service Failure and
Recovery for the Hospitality Industry. Boston Hospitality Review. 7(1).
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