Analysis of Consumer Behaviour in Tourism for TUI Travel

This report provides a comprehensive analysis of tourism consumer behavior, focusing on the case of TUI Travel. It explores the cultural, social, personal, and psychological factors that influence consumer attitudes and purchasing decisions. The report examines the impact of digital technology on consumer behavior, including the integration of the Internet of Things, virtual reality, and wearable technology. It details the stages of the consumer decision-making journey, mapping the path to purchase for tourism services, and highlights the importance of understanding this process for marketers. Furthermore, the report compares and contrasts the decision-making processes in the hospitality sector for both B2C and B2B contexts. It also discusses various market research approaches and methods used to understand the consumer decision-making process, and concludes by outlining the different stages of the tourism decision-making process that are influenced by marketers. The report emphasizes the dynamic nature of consumer behavior and the need for businesses to adapt to changing trends and technologies to remain competitive in the tourism market.

Tourism Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Investigation of different cultural, social, personal and psychological factors that affect
consumer behaviour and attitudes..........................................................................................1
P2.Changes which are occurred in consumer behaviour due to the impact of digital technology
................................................................................................................................................2
TASK 2............................................................................................................................................3
P3. Stages of consumer decision making journey and map path to the purchasing for tourism
service.....................................................................................................................................3
P4. Importance of map a path to purchase and understand consumer decision making for
marketers in tourism sector....................................................................................................4
TASK 3............................................................................................................................................6
P5.Compare and Contrast the key difference of the hospitality decision making process in
context of B2C and B2B.........................................................................................................6
P6. Different approaches to market research and methods of research used for understanding
the decision making process...................................................................................................7
TASK 4............................................................................................................................................8
P7. Different stages of tourism decision making process which are influenced by marketers8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Tourism refers to travelling which is the impermanent and short term motility of
individuals to terminus outside the places where they ordinarily live and work. Consumer
behaviour basically indicates to the study of how individual consumers, groups or organisations
choose, purchase, utilise and discard thoughts, goods and services to fulfil their demands and
desires (Xiang, Magnini and Fesenmaier, 2015). Tourism behaviour mentions to the way in
which travellers behave accordant to their attitude before, during and after travelling. This
assignment is based on TUI Travel which is a British leisure travel group and offering various
travel and tourism services to its target audiences. This organisation was formed in 2007 by the
merger of First Choice Holidays PLC and the Tourism Division of TUI AG. This company
operate its business in 180 nations all over the world and assertion 30 million consumers. There
are 54000 employees who are making their contribution in performing operations and activities
and running its business in effective way. This report will discuss about the factors that influence
tourism consumer behaviour, ability to map a path to buy, in tourism context and relevant forms
of research to understand influences on the consumer decision making process. Further, will
define different stages of the tourism consumer decision making process.
TASK 1
P1.Investigation of different cultural, social, personal and psychological factors that affect
consumer behaviour and attitudes
There are different cultural, social, personal and psychological components that create
impact upon consumers behaviour and attitudes. These factors are briefly described as follows:
Culture- Consumers behaviour is highly impacted by these elements like purchaser culture, sub
culture and social class. Cultural factors affect individuals because there are different individuals
and they belong from different religion, values and beliefs etc. For example, if TUI offer its
services to those individual who prefer travel to spiritual destination then they purchase its
services and products, if it consider that kind of desalinations and locations in its tour packages
(Moutinho and Vargas-Sanchez, 2018). These types of individual take decision for purchasing
anything by considering their culture, religion, values and beliefs.
Social Class- It is another factor which affect consumer behaviour. According to it, the
behaviour of customers can not be monitored on the basis of income but there are several other
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components like wealth, education and occupation etc. In TUI, they can purchase products and
services of it according to their living standard.
Social factors- Human beings are social animal so they and their behaviour highly influenced by
these components (Factors that Influence Consumer Behaviour. 2019). Reference groups,
family, role and status are some social factors that affect consumer behaviour in different
manners.
Reference group- This factor consist friends, family, co-workers, or famous people from
whom they are highly influenced. For example, an individual use the services of TUI and
introduce about the goodness and effectiveness of them to friends and family members. Then it
create effect upon their consume behaviour.
Personal factor- It consider lifestyle, economic condition, occupation, age, personality and other
self concept. These all elements affect an individual's behaviour.
Occupation and income- It is the major factor which is highly impacted to consumer
behaviour. For example, a person is worked as a waiter and travel to the local destination of the
nation due to lack income and salary. But now working as a manager, individual visit foreign
destinations.
Psychological factors- Motivation, perception, learning, beliefs and attitudes are some
psychological factors that high affect surcharging power and consumer decision making of
individuals.
Perception- It is the main factor which high affect customers attitude and behaviour. For
example, if people perceive that TUI offer effective services and holiday packages on relevant
cost in comparison to others then they can use the services of this company. Where as, the
perception is not good and think that the cost of holiday package are high then they can switch
form the organisation.
P2.Changes which are occurred in consumer behaviour due to the impact of digital technology
There are various digital technologies are adopt by tourism industry and they create
impact upon consumer behaviour in term of making change. There are some technical changes
which affect consumer trends, they are mentioned below:
Integration of internet of things- Internet play an essential role in travel sector in context
of influencing consumer behaviour (Alamanos, Kuznesof and Ritson, 2016). For example, with
the help of social media, the management of TUI can provide information about its products and
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services to its target audience of different nations. This positively influence consumer behaviour
because they will get proper information about its services and if they like, they can purchase
them. It also beneficial to the company because with the help of it they can reach to number of
customers and increase customer base.
Virtual reality- It is an another technology which affect consumer behaviour. In travel
industry, the possibilities of this technology are endless (Digital Transformation Trends in The
Travel and Tourism Industry. 2019). In TUI, with the use of this technology, the administration
can provide information about the destinations through descriptions, photos and videos of
holiday tour locations before purchasing and booking. It favourably influence customers
behaviours because consumer can provide detail information about tour location and if they like,
they can book their holiday package and if they are not like destination because it is not
according to their culture, status, life style and others, they will not purchase tour package.
Wearable technology- It is another digital technology which majorly influence consume
trends. In TUI, it is affect customers positively because in this technology, the are some wearable
devices which are helpful to customer to provide information about their reservation message,
QR codes, boarding pass reminders. Now these days individual are much busy so they do not
remind several this. With the use of this technology, they can make their travel easy and
influence favourably.
TASK 2
P3. Stages of consumer decision making journey and map path to the purchasing for tourism
service
Customer behaviour is an activity and determination devising procedure of a person to
purchase products and services of a particular company with the purpose of providing
satisfaction to its needs. Customer buying procedure is also known as purchasing decision
process of consumer. It consider five stages, they are mentioned as below:
Need recognition- It is the first stage of this process. With in it an individual can not
purchase anything with knowing and recognising need regarding products and services. For
example, in context of TUI, in this stage, individual find out need regarding to purchase holiday
package that they have a need of it or not (Customer’s buying process. 2019).
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Information search- It is next stage of decision making process, within it, consumer start
to search information and data after identifying their need and requirement. For this, they make
interaction to friends, family and colleagues to get information. In TUI, by designing and
formulating effective and attractive advertisement which provide clear information about its
services. It will be helpful to consumer to make easy their identification of inflammation
regarding their needs and requirement.
Source: Consumer decision making process,(2019).
Evaluation of alternatives- In this stage, customers evaluate effectiveness and
ineffectiveness of services and make compression between the prices and quality of products and
services among different companies (Gibson and O’Rawe, 2018). For example, if the consumers
show their interest in TUI services, then they search info about the price of holiday package,
destinations, days of tour, transportation, accommodation and others.
Purchase decision- After gathering information about products and services within this
stage, the customer make a decision to purchase product in order to achieve accumulated level of
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Illustration: Consumer decision making process

fulfilment. In TUI, after knowing about the clear information about holiday package, the
customer but its services and can book its tour package and other services which are provided by
the company.
Post purchase behaviour- This is the last stage of consumer decision making, this phase
generate after buying the products and utilising it and its services to evaluate the effectiveness of
the products and services. That it is capable to satisfy the needs and demands of customers or
not. For example, if the services which are offered by TUI in its holiday package then customer
repurchase them during the time of requirement. Whereas if the services are not good and not
able to meet customers need and satisfy them then they can switch to other travel company and
this process of decision making restart from its first stage.
These all stage of consumer decision devising process support TUI to monitor consumers
perception and their needs so that they can develop and design services according their
requirement. It will beneficial to company because it help in gaining competitive advantages
from market and increasing profitability and productivity of the firm.
P4. Importance of map a path to purchase and understand consumer decision making for
marketers in tourism sector
In current era, there are high level of competition in market which is highly affected by
customer decisions regrading company (Björk and Kauppinen-Räisänen, 2015). Consumer
behaviour is dynamic in nature so taste & preferences of individual are change according to
fashion and trends. For example, the industry where TUI operate is business, there are high level
of competition which affect the profitability and productivity of the company in unfavourable
manner (Couture and et. al., 2015). So the management of TUI should monitor market situation
in order to minimise the challenges to attain the good position in the market. Some of the reasons
are defined as below:
Influence of market mix- It is an integral function which provide its support to each
company build a strong position in competitive market to concern with proving right product at
right place. For instant, in TUI, if the management of the company will be able to monitor the
marketing mix such as product, price, place, promotion, people, process and physical evidence
then it affect the productivity and profitability of the company unfavourably. So it is required to
analyse current trend and change in market in term of customer's taste & preference, price,
location and other factor to manufacture services in more effective manner.
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Influence of technology- Technical innovation and modifications plays an important role
in increase market share and creating high level of competition at marketplace. In TUI, if the
management of company adopt new technology in its business the n it help in increasing sales
and profitability of the company in effective way. For example, if they make innovation in their
promotional channel by using technologies like social media and web promotion. Then it help in
maximizing customer base and market share of the organisation.
In addition to it, there are different concepts and models which are helpful to offer
directions to marketers to achieve their aims and objectives, some of them are defined as follows:
Economic view model- In it, consumer makes an attempt to measure several brand price
and choose the best for which they can easily provide and assume amazing gratification level.
So, marketer can make sure that their product price should be reasonable for expansing market.
Passive view- It concern with advertising actions and activities which assist company to
enhance its productivity (Prebensen, Chen and Uysal, 2018). In TUI, the management of the
company can make innovation in its advertisement channels which help the company in gaining
competitive advantages in effective way.
Emotional view- Within it, in TUI marketers take an initiative to analyse and understand
the emotions of target audience which help in making authorisation over customers mental state
to attain their target and objectives.
Cognitive view- In TUI, within it, management if the company can collect information
about the taste and preference of customers so that they can offer products by developing
effective strategies according to them.
TASK 3
P5.Compare and Contrast the key difference of the hospitality decision making process in
context of B2C and B2B
In marketing function, B2C and B2B are two forms of commercial transaction. B2B
indicates to business to business which a company make to another firm in order to achieve their
predefined target in good way (Liu and et. al., 2017). Whereas B2C indicates to business to
customer in which a company sells its products to customers. The difference between B2B and
B2C are defined as follows:
Particulars B2B B2C
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Purchasing decision Within it, before taking
decision in order to buy
product, business evaluate
information about product
price, strategies etc. in related
sector. To collect relevant
information in context of
products which lead them to
make improvement in overall
performance.
In it, customer are the
important factor who make a
judgement regarding
purchasing decision of the
products and services of the
company. It consume less time
in in order to B2B.
Finding out needs In it, B2B place it
participation to monitor the
market situation. The
management of the business
identifying needs of products
which are required to operate
business (Prajitmutita,
Perényi, and Prentice, 2016).
Within it, the management
make an effort to determine
needs and demands of
customers which are based on
that TUI utilize several
advertisement channels to get
attain of large number of
customers.
Decision related to market size In B2B, TUI segmented its
large market size on the basis
of income, age, occupation,
life style and other and
segmented them in small
group which is helpful to the
company to target its audience
in most effective manner.
In B2C, the management of
TUI covers vast scope of
marketplace section for
acquiring the attention of
consumers towards the brand
(Podoshen, and et. al., 2015).
The preceding defined difference of B2C and B2B help TUI to investigate the sector
scenario and gather data to capture high level of profitability without any issues. With the help of
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TUI can also build effective relation with their customers who help in increasing profitability and
sales of the firm or help in gaining competitive advantages.
P6. Different approaches to market research and methods of research used for understanding the
decision making process
To sustain and survive within current market till long time period, investigation play an
important role to endow a company to find out the trends and needs of consumer as well as
industry in order to effective course of action. TUI centring over both forms of business as B2B
and B2C market research which is defined as follows:
Market research approach in B2C
Within it, marketers majorly focusing on primary data collection method which assist
them to provide fresh and first hand information which assist in minimising bias and issues.
Some methods of this source are as following:
Personal interview-Within it, researcher make face to face interaction to consumers so
that they can get effective and appropriate information in to market that help in enhancing value
of the product in appropriate manner.
Questionnaire- It is another method of data collection, with in the investigator designs a
set of questions to gain information to customers which help them to improve the effectiveness
of the report as well as organisation's value (Jackman and Naitram, 2015).
Market research approach in B2B
With in it, researcher utilised secondary source of information collection which is already
available on internet, companies websites and others (Horner and Swarbrooke, 2016). This data
can be used by the investigator in upcoming time period. Some methods of this source are
defined as following:
Government and non government agencies- Within it, TUI view all the national
authorities or non government agencies polices and process which help them to keep the brand
image in market.
Public records- In it, TUI prosecute its determination devising procedure of trading with
the firm by monitoring their past records and performance between customers and market in
order to attain their aims effectively.
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TASK 4
P7. Different stages of tourism decision making process which are influenced by marketers
B2B and B2C are two integral components of marketing which are totally based upon the
purchasing behaviour and decision making process to attain high help of profit margins ratio and
productivity. Within business, marketers are considered to be the most important element as
they serves business through divergent advantages. These are the only source to the business of
company which help in generating revenue. B2B and B2C can be influences b y marketers by
adopting different methods which are mentioned as below:
Marketing campaign- Consumer get information about products and services through
advertisement or word of mouth promotion of them. In context of it, marketer must also make
concentration on the promotion of product and services so that they can provide information and
aware customer with the products. It help in gaining attraction of consumers regarding goods and
services which help in increasing profitability and enhancing productivity.
Perception- It indicates to the way that how an individual perceive things and have
thoughts regarding them. In TUI, perception can play an important role to influence the
purchasing power of customers. Marketer can concentrate on developing perfection of the
products and services in the mind of customer in favourable manner (Huang, and et. al., 2016).
So that the target audience can attract towards them, and provide satisfaction to their needs and
demands by purchasing them.
Example-
Some of examples re defined as in context of B2B and B2C business. For instant, TUI
operated its business in travel and tourism sector. It offer travelling services in it holiday
packages but when other companies like restaurant and transportation companies operated its
business with the help of its tour packages and offer transportation and accommodation or food
services to travellers (Ingram, Caruana and McCabe, 2017). Then it is know as B2B business
which is operated through business to business. In B2C, for instant, when TUI offer all services
by merging in its holiday packages to its customers through advertisement like social media,
internet, TV, radio and others, is know as B2C. On the other hand, if the management of a
company directly provide information about its services and goods to its target audience to aware
them about products, is B2C.
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CONCLUSION
Form the above information it can be summarised that consumer behaviour is effective
and interacting through which a company can evaluate market trends and get information about
customers needs and demands. There are various transformations and changes in digital
technologies which influence consumer behaviour. Consumer decision making process help in
identifying interest of individual regarding a specific products and service of a company. It plays
and important role in context of B2B and B2C that assist them to utilise available resources for
gaining profits. Along with it, taking appropriate course of action help the administrator of the
company to attain sustainable profitableness and also aid them to ameliorate brand value and
image in an efficacious way.
REFERENCES
Books & Journals
Alamanos, E., Kuznesof, S. and Ritson, C., 2016. The influence of holidays on wine purchasing
behaviour: marketing and tourism insights based on a holiday experience in Greece.
International Journal of Tourism Research. 18(3). pp.228-235.
Björk, P. and Kauppinen-Räisänen, H., 2015. Contemporary insights to the dynamic pre-trip
information sourcing behaviour. Tourism and Hospitality Research. 15(1). pp.39-53.
Couture, A., and et. al., 2015. The influence of tourism innovativeness on online consumer
behavior. Journal of Travel Research. 54(1). pp.66-79.
Funk, D. C., Alexandris, K. and McDonald, H., 2016. Sport consumer behaviour: Marketing
strategies. Routledge.
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.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
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