Hospitality Consumer Behaviour: Trends, Factors & Decision Journey

This report provides an in-depth analysis of consumer behaviour within the hospitality sector, focusing on the Ritz hotel as a case study. It examines the influence of cultural, social, personal, and psychological factors on consumer attitudes and behaviours, as well as the impact of digital technology on changing consumer trends. The report also explores the consumer decision-making journey, from problem recognition to post-purchase evaluation, and highlights the importance of understanding this process for marketers. Furthermore, it compares decision-making processes in B2B and B2C contexts within the hospitality industry, discusses various market research methods, and assesses how different factors influence hospitality decision-making and buying behaviour. Finally, the report considers how marketers can effectively navigate and influence each stage of the consumer decision-making process using relevant models and strategies.

Hospitality Consumer
behaviour and insight

Table of Contents
INTRODUCTION:..........................................................................................................................4
TASK 1:...........................................................................................................................................4
1.1 Analyse the various cultural, social, personal and psychological factors which cause the
consumer behaviour and attitudes within a hospitality context..................................................4
1.2 Investigate how consumer trends are changing due to the impact of digital technology.....5
1.3 Analyse how cultural, social, personal and psychological factors which influence the
consumer behaviour and attitudes are changing and driving trends in hospitality.....................6
1.4 Critically examine of the rising trends in consumer behaviour and attitudes with the help
of specific examples from the hospitality industry to support your arguments..........................6
TASK 2:...........................................................................................................................................6
2.1 Study the level of the consumer decision- making journey and represent a path to the
buying for the hospitality service................................................................................................6
2.2 Research why it is essential for marketers to represent a path to purchase and understand
consumer decision- making in the hospitality sector:.................................................................7
2.3 Measure how marketers are reacting to the decision-making process, applying relevant
illustration from the hospitality sector........................................................................................8
TASK 3:...........................................................................................................................................8
3.1 Examine and compare the main differences of the hospitality decision- making the process
in the context of B2B and B2C with the help of suitable habitability examples........................8
3.2 Measure the various formulation to market research and methods of research used for
knowing the decision making process.......................................................................................10
3.3 give a justified judgement of how different factors change hospitality decision-making and
buying behaviour, supported by specific hospitality examples................................................10
TASK 4: ........................................................................................................................................11
4.1 Measure how marketers can make the various levels of the hospitality decision- making
process giving particular hospitality examples.........................................................................11
4.2 measure how marketers can influence each level of the decision-making process with the
process with reference top the relevant methods and models applied......................................11
4.3 measure the usage of right models that changes the hospitality decision making process. 11

CONCLUSION:........................................................................................................................12
REFERENCES:.............................................................................................................................13

INTRODUCTION:
Consumer behaviour can be defined as the the process of knowing the customer in
particular. To understand what are their wants and needs and what they expect from the
businesses in particular as well. It can also be said as the study of all the individuals and the
group of individuals and also sometimes the organisations about their operating services. The
reactions, attitude and the preferences of the consumers regarding any particular good or services
is consumer behaviour. However, it is important for every organisation to understand the
behaviour f its customer, which will make them understand what is that the customer wishes to
change with the help of their reviews about that particular filed and then they can make
appropriate innovations and changes in their product and services. For this report however, the
Ritz hotel has been taken into consideration which is a grade II listed, 5 star hotel which is being
located in London, United Kingdom. It is a luxury hotel which is leading across the world. It was
introduced by Swiss hotelier cesar Ritz in the year 1906 (Aksoy and et. al., 2022).
TASK 1:
1.1 Analyse the various cultural, social, personal and psychological factors which cause the
consumer behaviour and attitudes within a hospitality context.
 Cultural factors: to understand and analyse the behaviours if the individuals is the
motive of the cultural factors. The cultural factors basically sees and affects the
perception, values as well as the behaviour of the people. When talk about in context with
the hospitality sector and the Ritz hotel, the main decision making process is being done
by keeping in mind the cultural factors of the person which includes how the individual is
raised and in which family.
 Social factors: factors which shows the social roles of the consumer. The social factors
show direct influence on the customers. In context with the Ritz hotel, it can be said that
if the hotel take the customers reviews seriously and make plans in order to accomplish
them, the customers will then choose this hotel rather than someone else (Chang, and
Cheng, 2022).
 Personal factors: the and and the kind of lifestyle a person follows shows a major
change in his/her decision. It also includes the occupation, the personality and the self

development in order to change their decisions. The customer will choose the hotel
according to his/her needs. The hotel just need to make sure to focus on the targeted
groups of customer.
 psychological factors: the psychology of the customer also makes them to change their
decisions about choosing one option. The Ritz hotel just need to make sure that they are
able to give full customer satisfaction and a great experience it its customers so that they
will choose them again for the stay in future. Also. They need to understand the
psychology of the customer as well for better decision making.
1.2 Investigate how consumer trends are changing due to the impact of digital technology.
Digital technology or the digitalisation can be defined as the process in which the
incorporation of the digital technology into the business as well as the social processes, which
have the main aim of improving them (Ghosh and et. al., 2022). This is the process which helps
the organisation as well as the hospitality sector and help them to interact with their customers
much better. But the misuse of these technology and their influence on the customer trends are as
follows:
 social media: social media is a platform which provides its users a stage to express
whatever they feel in front of thousands of people. It basically transfers the informations
as quickly as possible. In context with the hotel, if the customer sees some kinds of bad
reviews about that particular hotel, they will change their decision of booking that hotel.
 Internet: internet can be defined as the most incredible thing which has introduced at the
time of digitalisation. Internet is the core reason why the digitalisation is booming so
much. Everything is now online and people love it as it saves their time as well. People
write reviews on the internet as well and that can be seen by the other half public (Huang
and et. al., 2022). It can be both negative and in positive way for the Ritz hotel according
to each customer's experience there.
 Customers reviews: not only internet, reviews can be given in person and on the main
websites of the hotel as well. The customers make sure to give reviews in order to ensure
that the hotel will make changes accordingly as well as to guide the other half public as

well. And this is also the main reason in the increase and decrease in the online bookings
of the Ritz hotel.
1.3 Analyse how cultural, social, personal and psychological factors which influence the
consumer behaviour and attitudes are changing and driving trends in hospitality.
The factors which actually change the decisions of the consumers and the behaviour and
the trends as well. These factors change with individual to individual as every person have
different lifestyle, growing backgrounds, different mindsets and habits, and different preferences
as well. The first factor is the cultural factor and it affects the consumer trends by affecting the
value, perception, the liking and the behaviour of the individual (Huifeng, and Ha, 2022). The
social factors however affects the social role like family, background of the consumer. The
personal factors include the lifestyle and the economic conditions of the consumers and then
influence their decisions. the last is the psychological factors which involves the perception,
learning and the beliefs of the individuals.
1.4 Critically examine of the rising trends in consumer behaviour and attitudes with the help of
specific examples from the hospitality industry to support your arguments.
The consumer behaviour is fluctuating very much, and it can be seen that it is because of
the rising trends in the market. Internet is one of the major reason of emerging of these trends.
People get influenced very quickly by the platforms like social media. In the hospitality sector it
can be seen that the factors like the internet and the social media platform and the customer
reviews on the websites plays an important role in influencing people. But the Ritz hotel needs to
understand its customers and make suitable planning to make the customer satisfaction level rise
(Julião and et. al., 2022).
TASK 2:
2.1 Study the level of the consumer decision- making journey and represent a path to the buying
for the hospitality service.
The decision making journey path which helps in purchasing the hospitality service are
as follows:

 the problem recognition: this is the initial stage at which the issues of the consumers are
being identified first. The targeted audience of the hotel need to be at the priority and
hence they need to solve those issues and plan a strategic plan for that. For Ritz hotel, it
can be the customization of the packages they offer to their customers.
 Information search: the second step is of the information research which is being done
by the end used or the consumers. The consumers now have to search for that one hotel
he/she wants to stay in and for this they will also read the customer's reviews as well
(Kotur, and Dixit, S.K. Eds., 2022). Internet can be the best source to find this
information but apart form that advertisements, reviews form friends and maybe
magazines are also available.
 Evaluation: next step is to see the kind of services which the hotels are going to provide
and also to compare them in order to get the more profitable deal at cheaper costs. It can
be said that the hospitality sector is filled with many intangible products which are in the
form of the services they provide. The consumers can be importantly be influenced by the
amount of involvement they actually have in evaluating the hotels.
 Decision: the next step is to decide that for which hotel the customer is going to after
comparing all the prices and the facilities. The customer will however will choose the
hotel with best options and at the same time according to is income level and his/her
lifestyle as well.
 Buy: at this stage of purchasing, the customer will now may have in intention to purchase
the deal from the hotel that they have selected at the phase of evaluation (Kumar and et.
al., 2022). The final purchase decision can have the negative feedback of other people
and same level of motivation to take or deny the feedback as well.
 Post purchase: the last is the post purchase behaviour when the customer actually finds
out that whether he/she is being satisfied by the provided services with the respective
hotel or not. This is the time of decision which will tell whether the customer will again
visit the Ritz hotel in the future or not. In addition to this, this is the only final stage of th
journey where the customer also gives their reviews as well.

2.2 Research why it is essential for marketers to represent a path to purchase and understand
consumer decision- making in the hospitality sector:
It is very important for all the marketers to represent a path in order to purchase and
understand the consumer decision making in the hospitality sector as by planning a great plan,
they can know their customers preferences and can make suitable changes accordingly In their
hotels. This will make sure that the customers are eventually going to come back for the booking
at the same hotel only. In context with the Ritz hotel, it is being advisable for them to make good
relations with their customers and try to give as best experience as they can (Loureiro, 2022). In
addition to this, they also make sure to take live reviews from the customers and take them
seriously in order to make innovations accordingly.
2.3 Measure how marketers are reacting to the decision-making process, applying relevant
illustration from the hospitality sector.
The customer reviews and their reasons which make their decision to change plays a very
important role for the hotels. The managers of the hotel or the hospitality sector however take
those factors seriously and also act upon them quickly as possible by following or executing the
plan which they have made. The marketers can tempt the customers in order to make them
purchase their services by giving them exciting coupons as well as exciting deals, contests and
by doing great promotions (Marques and et. al., 2022). It can be said that the last way where the
customers can actually recognize their unfulfilled needs is by understanding that those services
which are being offered by the hotels are great according to their prices as well.
TASK 3:
3.1 Examine and compare the main differences of the hospitality decision- making the process in
the context of B2B and B2C with the help of suitable habitability examples.
B2B can be defined as a form of transaction which is being done in between two business
only. There is no direct involvement of the consumers as such. Where as, in B2C type of
transaction, the transaction of goods or services is being done in between the customer and the
businesses directly. The main differences in these two business transactions are:

DECISION-
MAKING
PROCESS
B2C B2B
Information
research
In b2c business transaction, the person
which does the main research upon the
recommended options which is being
given by some other individuals in the
market is the customers. In addition to
this, the recommendations can also
been extracted from the advertisements
as well. It also make them understand
about the hospitality services they
provide from the customer reviews
(Stafford and et. al., 2022).
Every organisation need some good
suppliers of the raw materials that
they need to import in order to run
their operating services. Hence the
hotels need to find many suppliers in
order to intensify their hospitality
services and then they can also get to
understand what does the consumers
trends wants exactly.
evaluation
The evaluation process is being done
by finishing all the research a hotel
need to do about its customer. The
process of decision making of what
hotel is to be chosen and at what time
is being included in the research.
In the B2B business transaction, the
evaluation process which is the
calculating part is being done by
completing a research of the
customers of the hotel as well as the
hotel itself. Hence it can be said that
the decision making process of
making the changes in order to make
the services and the ambience much
better and that can help the Ritz
hotel in attracting more number of

customers.
Problem
recognition
The key problem in the B2C business
is basically understandable by the
customers only because they are
actually the individuals who are
experiencing the hotel services in the
real life and therefore they are
considered as the top most priority for
the hotels as well as their reviews.
The organisation is the sole
individual to make any kind of
innovation and changes in the
company in which are being made
because of the customer reviews and
behaviours the B2B business
transaction (Tankovic and et. al.,
2022). It is however very beneficial
for the hotel in order to increase the
productivity and profitability at the
same time.
3.2 Measure the various formulation to market research and methods of research used for
knowing the decision making process.
It can be seen that by doing a proper market research for any organisation can be very
helpful to have a profitable business in the future. Therefore, it is a very important and kind of
necessary process to do by the organisation and the hotels as well. It will help them in providing
guidance in order to make those changes that their customers actually wants.
The methods of research which are basically used for understanding the decision making process
are as follows:
 organising the surveys: the first method is by organising the surveys in order to
understand what people actually thinks of their hotels in general. The surveys however
includes a questionnaire which refers to a paper consisting of various questions which the
hotel wants to ask the general public (Walters, and 2022). Those papers are then being
distributed in the public for their honest responses.
 Observations: in this method, the Ritz hotel is being advised to make some observations
regarding the choices and the needs of the customers which are being staying in their

hotels. Hence organising the surveys is a bit of a time consuming task that is why most of
the hotels go for this methods only.
3.3 give a justified judgment of how different factors change hospitality decision-making and
buying behavior, supported by specific hospitality examples.
It can be said that there are many factors which actually make an influence on the
decisions of the consumers regarding the purchasing services decisions. Most of these factors are
specific to the purchasing situation which is what is that occasion for which the person is being
acquiring the hospitality services in general. Some of the other factors which influence the
decision making can be an individual's background, their preferences, the personalities, the
motivation level and the most important is the economic status of the individual.
TASK 4:
4.1 Measure how marketers can make the various levels of the hospitality decision- making
process giving particular hospitality examples.
The decision making process of the customers in the hospitality sector mainly includes
various steps. the recognition is the first step where the customer is being identified by the hotels.
The second is the information search in which the main person is the customers as he/she is the
one who need to find a list of hotels according to the needs to stay (Zaman and et. al., 2022).
Then comes the evaluation or understanding and comparing the hotels on the basis of the
services they provide and their prices as well. After comparing, it is now time to decide the best
hotel to stay in and then to buy or purchase its services as well. Last is the post purchasing
which is related to know whether the customer is satisfied by the services provided or not. This
stage can be defined as the result stage for the hotels as the customers now give their final
reviews as well.
4.2 measure how marketers can influence each level of the decision-making process with the
process with reference top the relevant methods and models applied.

There are many aspects which have already been discussed above with the help of which
the marketers can actually make an influence on every stage of the decision making process of
the customer and by using appropriate methods and techniques as well. The management of the
hospitality sector also has to manage to take care of all the news which spreads as light on the
internet as it can make a huge impact on the hotel's brand image.
4.3 measure the usage of right models that changes the hospitality decision making process.
It can be observed that the digital transformation has a major influence and is one of the
key reason for the emerging changes in the consumer behaviour and the trends (Franco, 2022).
Therefore it is necessary for the hotels including the Ritz hotel to make appropriate strategies
accordingly in order to make their customers permanent for the future. In addition to this, the
methods like observing their existing customers, doing surveys also makes a huge difference in
making the right decisions as well.
CONCLUSION:
From the respective report, it has been concluded that for any organisation, it is very important to
understand its customers behaviours, their needs and wants as well especially In the hospitality
sector. Therefore to know all the factors which influence the consumer decisions making is
important. These factors are the cultural, social, psychological and the personal factors. Later on,
to know how consumer choices and trends are being influenced with the emergence of
digitalisation and how can the hotels map their strategy to minimize this. Later, it is advisable for
the manager to understand the importance of mapping a path and what steps they should be
following to minimize the fluctuations in the consumer behaviour. B2B and B2C business
models has been discussed along with the various methods of market research. In the last, how
can be the marketers of the hotel can be influenced by the change in consumer behaviours has
also been discussed.