Consumer Behaviour & Decision-Making in Hospitality Industry

This report provides a comprehensive analysis of consumer behaviour and insights within the hospitality industry, focusing on the Ritz hotel group in the UK. It investigates various factors influencing consumer behaviour, including social, personal, cultural, and psychological aspects, and examines the impact of digital technologies on consumer trends. The report analyses how these factors and emerging trends affect consumer behaviour, using examples such as the introduction of robots in hotels. It also explores the stages of consumer decision-making, the importance of mapping the path-to-purchase, and marketers' responses to the decision-making process. Furthermore, it compares key differences between B2B and B2C approaches in the hospitality industry, explains different research methods, and evaluates the influence of marketers at various stages of the consumer decision-making process, highlighting the application of relevant theories and concepts to the hospitality sector. The study concludes by emphasizing the importance of understanding consumer behaviour for the success of hospitality organizations like Ritz.

Hospitality Consumer
Behaviour and Insight.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Investigating the factors which are influence consumer behaviour............................................3
Explaining how consumer trends are changing as per digital technology..................................3
Analysing the factors that influence consumer behaviour with trends.......................................4
Analysing the emerging trend with specific example.................................................................4
Examining the stages and path of consumer decision-making...................................................5
Recognizing the importance of mapping Path-to-purchase in hospitality sector........................6
Evaluating Marketers’ response in the decision-making process...............................................7
Comparing key differences by B2B and B2C in hospitality industry.........................................7
Explaining the different approach and methods for research......................................................8
Factors influencing hospitality decision-making and buying behaviour....................................9
Evaluating how marketers influence by different stages of hospitality consumer decision-
making process............................................................................................................................9
Evaluating how marketers are responding to decision-making process...................................10
Explaining how marketers influence with decision-making stages with relevant methods......10
Evaluating appropriate theories and concept that impact on hospitality Industry....................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Consumer behaviour is a study that defines how individual and group select the services
to buy them for satisfying the need and wants of a person. This helps in decision-making process
of any organization. The above report is based on Ritz which is situated in UK and own different
sectors such as hotels, restaurants and resorts. The study determines various impact on consumer
behaviour and their path to purchase. Furthermore, also analyse different sources of research that
helps to understand decision-making process of consumer. Lastly, examine that impact of digital
technologies in hospitality industry, in which theories and concepts are applied with relevant
examples on it. In context to their decision-making process by influencing these elements of
company.
MAIN BODY
Investigating the factors which are influence consumer behaviour
Consumer behaviour means how customer, organization or group buy, select, dispose
ideas for goods and services to complete their needs and wants. There are various factors that
influence Ritz in terms of social, personal, cultural and psychological.
Social factors- This factor influence hospitality industry in terms of consumer's family
structure, income level, size, and health status (Ahn and Kwon, 2020). There are various classes
in social factors such as upper, middle, working, lower. Working class people are visit this type
places in terms of business meetings.
Personal factors- It includes personal saving, age and interest of a consumer. Youngster
are easily influence towards hospitality industry because they likely to visit new destinations.
People have unique psychological characteristics that lead to relatively consistent and have
specific mix of human traits that may be attributed to particular brand of hospitality industry.
Cultural factors- All the factors that are influence behaviour of consumer as per their
beliefs, customs, community, values etc. There are so many people who are not used to talk in
English that is why Ritz have weak customer base of Korean and African people. To mitigate
this problem organisation will hire the person who are ready to speak in various languages.
Psychological factors- Perception of a person impact on tourism industry because a
business man has their preferences as per daily lifestyle, they choose to go at the place where

they able to conduct their office meetings (Faulds and et.al., 2018). On other hand, a nature of
student would likely to go at places where they make fun and their enjoyment.
Explaining how consumer trends are changing as per digital technology.
Consumer trends are the behaviours and habits of a person towards their need and wants
of goods and services. Any hospitality manager wants to know which trend is emerging in
market. Nowadays trends are changing through digital technologies including electronic devices
and tools social media, multimedia, mobile phones etc. It has changed the way of management in
hospitality industry, this changed the way of purchasing decision of a consumer. Due to
emerging new trends, Ritz changed their services by adopting various technologies. There are
various factors by which hospitality industry has changed.
Smart Hotels- The concept of smart hotel improves customer comfort and experiences; it
also increases the profitability of hotels by enabling better management of their activities. Ritz
can make better management by implementing such things as heating, air conditioning, water
consumption etc.
Personalisation- Ritz provides personal services like spa, gym and rooftop restaurants to
their customer, in this organization they also provide greetings from their staff upon arrival.
Robots- This is the most exciting trend in hospitality with emerge of robots to carry out
complex lasts, either autonomously or semi-autonomously. Ritz introduced robot to generating
the response as human behaviour to attract the customer by advanced technologies.
Artificial intelligence- It plays different roles within hospitality industry to improve the
customer services. Organization provides online chatbots to interact with customer without
making lengthy lines.
Emphasis on health and well-being- Nowadays hotels are well-equipped with pools,
fitness centres and spas, it increases the travellers with expecting innovative and wellness
options. Ritz provides healthy food, yoga spaces and in exercise equipment with vitamin infused
shower water.
Analysing the factors that influence consumer behaviour with trends
In hospitality industries there are various factors that change consumer behaviour with
trends. Nowadays people are more active on social media they post or share their experiences of
visiting new hotels (Golnar-Nik, Farashi and Safari 2018). This influences attitude and behaviour
of consumer in terms of visit the same place with the active trend, this increases the productivity

of hotels. In addition to this, competition also influences organization to run the services
according to trends of robots, artificial intelligence, smart hotels etc. Ritz provides best services
to their guest in terms of proper healthcare facility and with wellness options with hotels.
Analysing the emerging trend with specific example
The relationship between hospitality and consumer trends are growing strongly for
example, Hilton introduced a robot recently that respond to human speech and answering
questions to their hotel's guest (Huang, Lee and Chen, 2019). It increases the customer for
experiencing the robot as human intelligence, this increases the productivity of organization. On
other hand, it is very costly to buy this and tough to operate the robot because of this company
hires a person who can operate correctly.
Examining the stages and path of consumer decision-making
Consumer decision-making is a process by which consumer can identify their needs by
collecting information, evaluating the alternatives and make the purchase decision. These actions
are determined by economical and psychological factors that are influenced by environmental
factors such as cultural, group and social values.
Need recognition- This is a first and important stage of the process, consumer recognize
the need for a service or product.

Information search- It is the process of past recalling the information which are already
stored in the memory. To collect information about the hotel by outside environment like friends,
family, social media etc.
Evaluation of alternatives- During this stage consumer evaluate the brand and product
options on a scale of attributes that can be delivered the benefit they are seeking.
Purchase decision- In this process consumer is in the form of buy the most preferable
brand over all the alternatives. It influences the purchase decision by reviewing matter for
deciding and recommending sources (Nyadzayo, Matanda and Rajaguru, 2018). There are five
stages of customer journey awareness, considerations, interest, preference and purchase.
Post purchase behaviour- During this process consumer describes the way of thinking,
feeling and acts after they experience something. Also, assessing that guests of hotels are happy
or not with their services.
Mapping path-to-purchase is a series of channels that customers use or exposed to use
in terms of converting into purchase. These channels are including from emails, search engines,
apps, brands, websites etc. There are five stages of path to purchase such as awareness,
consideration, interact, preferences and purchases.
Recognizing the importance of mapping Path-to-purchase in hospitality sector
In hospitality industry it is important to engage with the customers and build good
relationship with them. Consumer journey mapping helps organization step into customer's

perspective. Mapping path to purchase helps the hotel to where customer interact with their
business. According to hotel industry customer journey has several stages such as travel idea,
research, booking/purchase, stay at the hotel, post- stay. It is crucial to maintain good customer
mapping strategy from enables for hotels to identify the desires and expectations of the
individuals. It provides more appropriate product and services at each stage in their customer
journey (Ristova and Dimitrov, 2019). Also, it focuses the business on particular customer needs
at different stages in the buying process.
Higher ROI- It increases the return on investment by identifying customer's expectations
and their wants. With mapping guest journey, organization can find out differences between
hotelier and customer. This helps to increase the satisfaction of customer that directly linked to
greater ROI.
Build good reputations- Nowadays customer like to share their experiences, opinion on
social media that build the good reputation of company with positive experiences. This also
attracts more booking by having happy customers.
Get loyal customer- If customer had a good experience in the first time they likely to
return and stay again in same hotel. By mapping guest journey, it allows to personalize their
experiences and elevating the whole stay period.
Evaluating Marketers’ response in the decision-making process
The best way to respond to this need is to establish the brand as an industry leader by
attracting attention and making the brand visible prominently in online searches and web
materials. It can be done by way of blog posts, infographics, videos, guides, check lists and
interactive content. Hospitality manager will need to position their product and services in the
minds of their target customers (Sukendia and Harianto, 2021). One of the best way to engaging
with customers by creating content like customer's guide, Q&A pages so that researcher can look
for additional information. For example, company will offer relatively discount coupons so that
guest can visit again, it helps to find targeted customers which build the good reputation among
them.
Comparing key differences by B2B and B2C in hospitality industry
Basis B2C B2B
Meaning It is the process of offer the product This refers to offer the product and

and services directly to the customers. services from one business to another.
For example Ritz is example of business to
customer firm. This deals directly
with customers.
Travellanda is example of business to
business. It deals directly with other
firms.
Services They provide their services to end
users individuals.
They outsource their hotel staff from
organization in order to whole selling
food purchasing and maintenance
performance of other hotels.
Customer
relationship
B2C establish transactional
relationships to drive services for
short time.
B2B builds the personal relationship
for long terms decision-making
process.
Identifying need They identify practical and buying
need of individual customer. Guest
can influenced by advertisement and
marketing techniques that introduces
new services.
This buying process identify the
overall business strategy to improve
their services.
Decision
making process
B2C process where hotelier can
utilize their expertise to maximize the
ROI (Types of consumer behaviour,
2021). For a marketer it is essential to
appeal customer to simplify the
decision-making process.
It is the process of where hotelier can
take the rational and emotional
decisions of business. B2B is promotes
more open communication between
both the parties.
Purchase
decision
Consumer might discuss major
purchases with partners or family, but
it is usually one person making the
decision. Consumers are more liable
to make impulse purchases than
business.
For businesses, it is comes after a long
process and probably discussion by a
committee.

Post purchase
behaviour
Consumers will access after- sales
support only if there is a problem, or
they want to complain regarding the
services.
Business customer are usually regarded
as longer term buyer. If there is any
problem with services organization
will want to work with its supplier to
resolve them.
Explaining the different approach and methods for research
Market research is a technique that used to collect information for better understanding in
decision making process.
Surveys- Marketers can use these methods for research about the customer preferences,
by survey hotelier can provide a questionnaire to regular guest to know about their needs and
wants, so they change decision-making process according to response of survey. Public
organization provide online questionnaire on social media to know the current trend of
hospitality services (Zhang, Zhao and Gupta, 2018). All information improves what needs to be
fixed in the future, to increases the customer base.
Interviews- Company will take interviews of regular customer to know what facility
influence them to visit again at the hotel. For example, Ritz has good infrastructure and also
provide personalization service to attract the customer towards their organization. It promotes
spa and gym facility to attract customer by additional such activities. All these information helps
to make decision process easy and deliberately.
Focus groups- This is one of the best and effective method to gather relevant data from
focus group, for hospitality industry focus group are business workers, students, adults etc. They
all have different perception according to their need. For a business man they want the place
should be peaceful and attractive to focus on their projects. On other hand, students and adults
preferences might be need friendly environment to make fun with family and friends. These
methods help to know what preparation can be done according to the guest. Ritz organize
programs for focus groups to improve their performance.
Factors influencing hospitality decision making and buying behaviour
There are various factors that influences decision-making process and buying behaviour
of consumer such as personality, self and motivation. Personality likely to influence individual
choices, they affect the way of consumers respond to marketer’s promotional efforts. Self-

concept is about self-esteem, body image, role performance and personal identity. This impacted
buying behaviour of consumer because in this concept consumer is very enduring about their
choices and preferences. Motivation is a driving force behind purchasing decisions as consumer
are actively seeking to satisfy their needs (Willman-Iivarinen, 2017). For example, customers of
Hilton are self-esteem and have personal choice to stay in hotels according to their preference.
Evaluating how marketers influence by different stages of hospitality consumer decision-making
process.
Need recognition- Marketers identifying the need of a customer and change the decision
in favour of them. It recognizes by feedback that provided by customer related to hotel services.
Marketing team will analysis the problem to overcome this, and give them better services next
time.
Information search- This stage influences marketers by past information given by guest.
Company will collect the information regarding the trends and competition services. Ritz will
also provide their services in a better way and increases the consumer base.
Evaluating the alternatives- Marketers will provide all the information which are
evaluating by consumer through social media and websites. By this process they can examine the
benefits and disadvantages of each alternative. They promote their services by evaluating social,
economic factors that can be impact the predictable outcomes.
Purchasing decision- They identify the reviews related to services of their hotels, it can
be influenced by social media on purchasing decisions. Marketers affected by both positive and
negative reviews of hotel services, to overcome this problem they will promote their organisation
in positive way.
Post-purchase evaluation- This stage influenced by how consumer feels, thinks about
the services or next time they will go to purchase the same services or not. Their review matters
a lot because it helps to build good image of organization.
Evaluating how marketers are responding to decision-making process
Need recognition- Marketers of Ritz identifies the problem that consumer wants fast
service as compared to last time, in this situation organization will hire more staff for attending
customer personally and overcome this problem.

Information search- By surveys organization finds that Hilton has strong customer base
as compared to Ritz to overcome this problem cited firm will identify the loopholes and improve
their services by training and development process of employees.
Evaluating the alternatives- Marketers will be evaluating the problem by update regular
posts on social media so that regular customer can also share their experiences. This activity can
increase the brand image of organization.
Purchasing decision- By customer reviews marketers will offer extra services to their
customers and provide them discount coupons for next time. This will increase the customer base
of Ritz.
Explaining how marketers influence with decision-making stages with relevant methods.
In hospitality organization marketers will improve the purchase decision of customer by
evaluating response of surveys. It may show that customers are in need of particular services and
would be willing to buy, Ritz will go ahead and make the product services available. Otherwise,
customer mind can change and markers have also influenced to change their decision-making
process. Other factors that are essentially for this are price and quality of services, to improve
this factors marketers will identify the problem and overcome by cope with digital audience and
there response towards their hotel.
Evaluating appropriate theories and concept that impact on hospitality Industry.
There are various factors that impacted on hospitality industry such as social, economic,
cultural, trends etc. On other side different theories are also influenced for example in Hilton
most of the customer like to visit there because of robotic services that attract people. The
perception of consumer towards them is positive and expect good response in return (Stages of
decision-making process, 2021). However, this technology costs high and hire different team to
operate this type of services. There is possibility that customer harm the robot by making fun
with them.
CONCLUSION
It has been concluded that consumer behaviours played important role in decision-
making process in hospitality industry. Also, identified the various factors that influence Ritz in
terms of social, political, cultural differences etc. and analysed the emerging trends in consumer-
behaviour and attitude by specific example of Hilton. Moreover, examined the decision- making

journey and path to purchase to understand the response of marketers. Besides this, evaluated the
different stages in hospitality sector and how it can be influence the consumer behaviour.
Furthermore, applied relevant model and theories to recognized their impact on hospitality
industry.