Research Report: Customer Needs Impact on Hotel Industry Structure

This report explores the impact of changing customer needs on the structure of the hospitality industry. It begins by introducing the dependence of the hospitality industry on customer preferences and the significant structural changes brought about by shifts in these needs. The research aims to identify this impact, focusing on examining the effects of changing preferences and recommending actions for the industry to meet customer expectations. Key research questions address how customer preferences affect the industry's structure and what actions can be taken to adhere to these expectations. The literature review highlights the role of technological innovations and digitalization in raising customer awareness and expectations regarding service quality and brand loyalty. The methodology employs a positivism philosophy and a deductive approach, utilizing an explanatory research design to understand the cause-effect relationship between customer needs and industry modifications. Primary data will be collected through semi-structured interviews with hotel managers, and the estimated findings suggest that changing customer preferences have indeed led to significant structural changes in the hospitality industry.

Running head: HOSPITALITY MANAGEMENT RESEARCH
HOSPITALITY MANAGEMENT RESEARCH
Name of the student
Name of the university
Author note

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Table of Contents
1. Introduction..................................................................................................................................2
1.1 Background............................................................................................................................2
1.2 Aim........................................................................................................................................2
1.3 Objective................................................................................................................................2
1.4 Research question..................................................................................................................2
1.5 Research Hypothesis..............................................................................................................3
2. Literature review..........................................................................................................................3
3. Methodology................................................................................................................................5
3.1 Research philosophy..............................................................................................................5
3.2 Research approach.................................................................................................................5
3.3 Research design.....................................................................................................................5
3.4 Primary data Collection process............................................................................................6
3.5 Time frame.............................................................................................................................6
4. Estimated Findings......................................................................................................................7
References........................................................................................................................................8

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Topic: The changing needs of the customers and its impact on the structure of the hotel
industry
1. Introduction
1.1 Background
The developments of the hospitality industry are chiefly dependent on the needs and
preferences of the visitors. The hospitality industry, belonging to the service sector, emphasizes
more on the changing needs of the clients in order to bring forth modifications in the structure.
The different shifts in the customer needs have brought about significant changes in the industry
structure. The current research will identify the manner in which the changing needs of the
customers affect the structure of the hospitality industry.
1.2 Aim
The aim of undertaking the research is to identify the impact of changing need of
customers on the structure of hospitality industry.
1.3 Objective
The objectives for the research will be:
 To examine the impact of changing preferences of the customers on the structure of
hospitality industry
 To enumerate the recommended actions that might be undertaken by the hospitality
industry for meeting the expectation of the customers
1.4 Research question
The research questions will be:

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 How do the changing preferences of the customers affect the structure of hospitality
industry?
 What recommended actions might be undertaken by the hospitality industry for adhering
to the expectation of the customers?
1.5 Research Hypothesis
H 0 – There is no impact of the changing needs of the customers on the structure of the hospitality
industry
H 1 – There is an impact of the changing needs of the customers on the structure of the
hospitality industry
2. Literature review
Molina-Azorín et al. (2015) stated in a research that the expectation of the customers has
changed drastically through the technological innovations and the growth of financial
potentiality of the same. In this relation, the hospitality industry has developed the processes in
order to correlate to the evolving needs of the customers. Liang and Zhang (2012) stated in a
research that digitalization has helped in making the customers aware of the brands and the
service quality. It has been reported that before digitalization more than 78% of the general
customers (apart from 22% of the business executive classes) were unaware of the brand name
and importance of the same while choosing hotels (Tavitiyaman, Qiu Zhang and Qu 2012).
However, the developments in technological aspects has supported in making the
customers aware of the service quality and enhanced the expectations of the same. The change in
the expectations of the customers related to security, quality of services and other factors relating

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to brand loyalty has brought about drastic changes in the hospitality industry (Benavides-
Velasco, Quintana-García and Marchante-Lara 2014). On the other hand, the enhancements in
the consumer expectations are chiefly dependent on the enhancements in the lifestyle through
better employment opportunities (Hsu, Oh and Assaf 2012). Therefore, the hospitality industry
undertook different steps in order to embed technological innovations in the processes in order to
enhance the quality of the services in accordance to the needs of the customers.
Prud’homme and Raymond (2013) stated that the customers expect more services and
amenities at a lower cost, which is the result of different technological innovations. In this
relation, the modern day hospitality industry has created a series of service in order to adhere to
the growing expectations of the customers. Wang, Chen and Chen (2012) stated that the
hospitality industry brought about changes relating to online booking, free wifi, complimentary
services and the like. The changing needs of the customers have thereby brought about
significant modifications in the hospitality industry. The structure of the industry depended on
customer satisfaction and thereby the drifts in the client expectations brought about
modifications in the hospitality industry.
The technological innovations helped the hospitality industry in bringing forth
modifications in the on- going processes. On the other hand, Grissemann, Plank and Brunner-
Sperdin (2013) stated that the hospitality industry also recreated the amenity propositions of the
same as per the needs of the types of guests which has helped in diversifying the service
offerings. Therefore, the change in the customer preferences affected the structure of the
hospitality industry and the offerings of the same.

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3. Methodology
3.1 Research philosophy
The research will be utilizing Positivism philosophy, which will help in evaluating the
change in the hospitality industry, which is based on the change in the expectation and behaviour
of the customers. The positivism philosophy will help in identifying the situation through the
application scientifically proven techniques related to customer behaviour.
3.2 Research approach
The research will be undertaken through the application of a deductive approach that
will assist in scrutinising the available models and theories related to the change in the consumer
preferences and the management mechanisms that are employed by the hospitality industry while
adhering to the needs of the same. The developments in the research will be assured through the
theoretical contexts relating to the manner in which the change in the preferences of the
customers affects the structure of the hospitality industry.
3.3 Research design
The research will be undertaken through the application of Explanatory research
design, which will help in understanding the cause- effect relationship between changing needs
of the customers and the modifications in the hospitality industry’s structure respectively. In this
relation, the delineation of the cause and effect relationship will help in identifying the degree of
modification that is being undertaken by the hospitality industry depending on the changing
preferences of the customers.

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3.4 Primary data Collection process
The data for the research will be collected through the application of the primary data
collection method, which will help in conducting semi- structured qualitative interviews with the
managers from five distinct hotels. The sample size for the qualitative semi- structured interview
will be 5 and the responses will be collected and analyzed for justifying the hypothesis. The data
collection and analysis procedure will be conducted simultaneously in order to maintain the
efficiency of the study.
3.5 Time frame
Task Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate
methods
Data collection
Data analysis and
representation

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Reviewing the
outcomes
Conclusions and
recommendations
Submitting draft
of the project
Printing and final
submission
Table 1: Table showing the timeframe of the entire research
(Source: As created by author)
4. Estimated Findings
The estimated findings of the research might support H 1, which will denote that the
changing preferences of the customers has brought about significant amount of structural
changes in the hospitality industry. The data will be analyzed through regression and T -testing
and thereby will be represented as findings for the research.

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References
Benavides-Velasco, C.A., Quintana-García, C. and Marchante-Lara, M., 2014. Total quality
management, corporate social responsibility and performance in the hotel industry. International
Journal of Hospitality Management, 41, pp.77-87.
Grissemann, U., Plank, A. and Brunner-Sperdin, A., 2013. Enhancing business performance of
hotels: The role of innovation and customer orientation. International Journal of Hospitality
Management, 33, pp.347-356.
Hsu, C.H., Oh, H. and Assaf, A.G., 2012. A customer-based brand equity model for upscale
hotels. Journal of Travel Research, 51(1), pp.81-93.
Liang, R.D. and Zhang, J.S., 2012. The effect of service interaction orientation on customer
satisfaction and behavioral intention: the moderating effect of dining frequency. Asia Pacific
Journal of Marketing and Logistics, 24(1), pp.153-170.
Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., Lopez-Gamero, M.D. and Pertusa-Ortega,
E.M., 2015. The effects of quality and environmental management on competitive advantage: A
mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.
Prud’homme, B. and Raymond, L., 2013. Sustainable development practices in the hospitality
industry: An empirical study of their impact on customer satisfaction and
intentions. International Journal of Hospitality Management, 34, pp.116-126.

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Tavitiyaman, P., Qiu Zhang, H. and Qu, H., 2012. The effect of competitive strategies and
organizational structure on hotel performance. International Journal of Contemporary
Hospitality Management, 24(1), pp.140-159.
Wang, C.H., Chen, K.Y. and Chen, S.C., 2012. Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors. International
Journal of Hospitality Management, 31(1), pp.119-129.