Consumer Behaviour and Insights in the Tourism Industry Report

This report delves into the intricacies of tourism consumer behavior, examining the various cultural, social, personal, and psychological factors that shape consumer attitudes and purchasing decisions. The analysis explores the impact of digital technology on consumer trends, highlighting how companies like IHG are adapting to these changes. The report investigates the consumer decision-making journey, mapping the path to purchase for tourism services, and evaluates how marketers influence each stage. It also compares and contrasts the decision-making processes in B2C and B2B contexts within the hospitality sector. The report incorporates specific examples from the tourism industry to support its arguments, providing a comprehensive overview of consumer behavior and marketing strategies in this dynamic field.

Tourism Consumer
Behaviour and Insight

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1: Investigate the different cultural, social, personal and psychological factors that influence consumer
behaviour and attitudes with a tourism context........................................................................................3
P2: Explore how consumer trends are changing due to the impact of digital technology........................4
M1: Analyze how cultural, social, personal, and psychological factors that influence consumer
behavior and attitudes are changing and driving trends in tourism..........................................................5
D1: Critically analyze the emerging trends in consumer behavior and attitudes using specific examples
from the tourism industry to support your arguments..............................................................................5
TASK 2.......................................................................................................................................................5
P3: Examine the stages of the consumer decision making journey and map a path to the purchasing for
a given tourism service............................................................................................................................5
P4: Explore why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector.....................................................................................................6
M2: Evaluate how marketers are responding to the decision-making process, applying relevant
examples from the tourism sector............................................................................................................7
D2: Critically evaluate the application of appropriate theories, concepts and models that influence and
impact upon the tourism decision making process supported by specific tourism examples and contexts.
.................................................................................................................................................................7
TASK 3.......................................................................................................................................................7
P5: Compare and contrast the key differences of the hospitality decision-making process in the context
of B2C and B2B using specific tourism examples...................................................................................7
P6: Evaluate the different approaches to market research and methods of research used for
understanding the decision making process.............................................................................................8
M3: Provide a coherent and justified evaluation of how different factors influence tourism decision-
making and buying behaviour, supported by specific examples..............................................................9
TASK 4.......................................................................................................................................................9
P7: Evaluate how marketers can influence the different stages of tourism decision making process
giving specific tourism examples............................................................................................................9
M4: Critically evaluate how marketers influence each stage of the decision-making process with
reference to relevant methods and models applied................................................................................10
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Consumer behavior affect the buying decision of the company, especially in tourism
industry the customer behavior keeps on fluctuating according to the situation and external
environment. To better understand the topic IHG company has been selected which offer diverse
services associated with hotel, restaurant and resort all around the globe. The hotel comprises of
various divisions that effective cover the requirement of high and upper middle class people.
This report cover topics like examination of different factor that influence the behavior of
customer. Map out the consumer decision making process. Moreover, perform the research
which can influence the customer decisionmaking process. Further, examine different stages of
tourism decision making process.
TASK 1
P1: Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes with a tourism context
Consumer is the most important part in any type of business, the main focus of any
business is to satisfy the needs and wants of the customer, so it is very important for company to
understand consumer behaviour and work according to the situation. The company keep cultural
factor in mind where they are doing business they make sure culture of that region is followed
(Juvan and Dolnicar, 2014). So that customer and public don’t feel offended cultural values are
kept in focus as public need to be satisfied and they will be the end customer so they should be
happy with the way company is operated.Social factors, such as culture, family or social level
have a great influence on behavior because they define the individual. The IHG focuses on the
society and makes a check on the nature of tourist and gives them deal accordingly, if a tourist is
a compulsive tourist they show them Fancy pamphlet and if the tourist is a conservatism family
they show them economical package which can give them family discounts. It is very important
to understand the society and do business accordingly, the company focus on understanding the
social behavior and frame decision after that so there is a better understanding of the
environment in which the business is working on and dealt after that. Personal psychology of the
customer is taken into consideration, a customer need is identified by the company and service is
given accordingly so that customer get the satisfaction they were looking for and visit the
company more often in the coming future, personality of the customer tells a lot about the wants

and needs of the customer, the company work on that also. The attitude of the customer is also
taken into consideration as attitude also influences the buying behavior of the customer, it comes
under psychological study so that state of customer is studied and decision is made then(Bel and
et. al., 2015). The company do proper study of consumer decision before making any final
decision so that customer get what they are looking for and visit the company again in the
coming future.
P2: Explore how consumer trends are changing due to the impact of digital technology
Digital technology influence has changed the way the company uses to work previously;
it had broughtlot of changes in the way the company uses to operate. It has changed the way the
customer use to approach to a product and services also. With tones of advertisement done in
online platforms nowadays there is lot of content for people to consume. The IHG company
makes sure that advertisement or blog on digital media is done in a unique way so that it can
engage the customer and influence their buying decision. The IHGcompany do interaction with
their potential customer so that they can get the personalization they are craving for, teams are
there who take care of customer queries online so that customization can be made according to
the customer and they can get satisfied and informed about the package they are going for, it
influences the buying behavior of the customer and changes the potential customer to the final
customer. The company try to do personalization so that customer don’t get frustrated with huge
amount of content and they can actually get content what they are looking for in the blogs
published by the company(Gibson and O’Rawe, 2018). With the introduction of digital media
customer is well informed about the product and services offer by all the firms in a said area,
they have all prior information. So IHG company needs to be smart while dealing with customer
and should pitch them a deal which gather their attention and influence them to choose the
company out of all the rival firms. With introduction of digital platform customer had lot of
option from where they need to choose from, so brand loyalty became a very crucial aspect and
the company work on building the brand image so that more and more customer choose the
company because of the brand image and loyalty towards the services provided by the company.
The company also knows that with lot of options lying on the table customer expectations has
also increased and they want to get a best deal out of the many and they are ready to switch if
any company is providing them a better package so the company take care of the most aspects

before making a final decision. So the company is adapting to the digital media and using it to
their advantage to promote and spread information to the prospective customers.
M1: Analyze how cultural, social, personal, and psychological factors that influence
consumer behavior and attitudes are changing and driving trends in tourism
The company is identifying that customer buying pattern is changing day by day and they
are ready to purchase more if they are getting the desired package (Gössling and et. al., 2012).
The customer are well informed and know about the option they had so the company need to be
careful while pitching them the package, it should be flexible and should meet all the
requirements of the customer so that they are ready to purchase it without a second thought. The
IHG hotel needs to do a complete study on the trends and approach to the customer in a way that
there all psychological need is satisfied and they refer the company to others in future.The
company should study all the factors which can influence the purchase decision. Cultural and
social factors need to be addressed properly and customisation on services can be done according
to the customers culture and social needs.
D1: Critically analyze the emerging trends in consumer behavior and attitudes using specific
examples from the tourism industry to support your arguments
With the introduction of social media customer had become choosy and they choose from
the lot whatever give them more satisfaction. The customer try to search for small package as
they are busy and don’t have time to spent on their luxury so company are informed about it and
give them deals which provide them what they want(Cheng and Edwards, 2015).
TheInterContinental Hotelshad faced the issue of increase competition and they are working in
reducing the cost and giving attractive offers to satisfy the customer.

TASK 2
P3: Examine the stages of the consumer decisionmaking journey and map a path to the
purchasing for a given tourism service
The company has examined the customers buying decision making journey so that they
can fulfill the needs of the customer and help them making purchasing decision. There are 5
stages for customer decision making pattern,
Problem recognition: It starts from the problem recognition, the customer has a problem
first, let say they are looking to have a family tour at a particular place in London. So company
will recognize that the potential customer is looking for touring London. As the tourist are not
from London they will go digital and search for the tourist services in UK or contact the few via
calls, so company know that they need to be visible in social media and according to their
services they must have attractive feedback from their old customer so that customer go through
the company site to satisfy there needs.
Selecting from alternative: The customer will be having lot of options and they have to
select any one of them. So IHG company is planning to interact with the customer and
understand what they actually want and provide them with the package of their choice so that
they can choose the company from all the alternatives they have. The customization will be done
according to the needs of the customer and package will be negotiated to a reasonable price.
Purchase: Then it is up to the customer to select, the company should provide them the
best package according to their needs so that they can select it out of the many alternatives they
have (Sigala, Christou and Gretzel, 2012). The company will go through psychology of customer
and its profile and pitch the product accordingly so that they can make final decision in favors of
the company.
Post purchase: Once the purchase is done by the customer they should get whatever they
are expecting from the package so that they can get satisfied and consider to refer the company
to their peers one and friends, some complimentary can be given where needed by the company
to make the experience of the customer lasting and to build a relationship with them for the
future.

P4: Explore why it is important for marketers to map a path to purchase and understand
consumer decision-making in the tourism sector
The competition in a tourism sector is immense. Lot of new company is coming into the
picture and lot of new marketing technique is adopted to cater the attention of the audience. So it
is very important for IHG hotel to understand the consumer decision making as if they have the
knowledge of that they can pitch customer accordingly with more success rate. The knowledge
helps the company to overcome the competition as they know how to deal with a customer.
Different customer had different needs so of the company can recognized what they are actually
looking for in a package they can pitch the product likewise to generate the interest of the public
(Malone, McCabe and Smith, 2014). The product and services can be pitched according to yeah
psychology of the customer. Proper understanding of decision making pattern they will be
knowing how to personalize their website so that more and more hits and clicks can be achieved
and they can change the services according to the modern trend when needed by interacting with
a sample from various part they can get lot of information and they can promote their tourism
services according to that(So, King and Sparks, 2014).
M2: Evaluate how marketers are responding to the decision-making process, applying relevant
examples from the tourism sector.
Decision making process is an integral part thus marketers are looking forward to it so
that they can understand the public much better and serve them accordingly. In tourism sector the
company makes different package according to the profile of the customer and their convenience
so that they can choose from lot of different option. They make sure customer get the advantage
of choosing and customizing their stay and lot of alteration is made if needed and possible. The
tourism business like IHG is a seasonal business and the company make sure offer is given to the
customer at off season time and lot of additional future benefit is given so that tourist have a
reason to visit again. At the seasonal time the company try all means to make stay memorable of
the tourist, it not only help the company but also the country as tourism sector directly impact the
economy of the company. The marketers are well aware that decision making process need to be
implemented so that they can identify the needs of the customer and help them on all the stages
to do the final purchase and make their experience lasting, so that they visit again. Good services
will result in getting more references from current customers.

D2: Critically evaluate the application of appropriate theories, concepts and models that
influence and impact upon the tourism decisionmaking process supported by specific tourism
examples and contexts.
There are theories and models of decision making which a company can adopt for their
growth and for understanding their customer better. Decision making theory comprises of
Bayestheorem and expected utility theory out of which a company can choose to make work
easy for the organization and service the customer according to their need so that they can have a
lifetime relationship with the company(Song and Liu, 2017).
TASK 3
P5: Compare and contrast the key differences of the hospitality decision-making process in the
context of B2C and B2B using specific tourism examples.
The company needs to adopt different approach while dealing with an individual
customer and a business as a whole. Selling of services between two business enterprises is
known as B2B while B2C means when business is selling their services to an individual. At the
time of purchase the purchaser is a company in B2B while in B2C the purchaser is end user.
When it is about B2B company main focus is to build an everlasting relationship in case of B2C
company focus on selling the services. In B2B sales is done in a large number while in B2C
quantity is relatively low. Business do proper thinking and planning before purchasing the
services but when customer purchase it, the decision can be impulsive in many situations.
Key differences between B2B and B2C decision making process are the B2B decision
making is quite lengthy as they are paying more they go through all the option and they choose
the best one in the market because they are buying in bulk so chances are there that they can get
heavy discounts and offer, talking about B2C the decision doesn’t take much time as the
investment is comparatively low so consumer will make decision quickly. In case of B2B the
InterContinental Hotelstries to make a lasting relationship with the business so that they can get a
loyalty and every time they are planning a tour they will get membership discount because of the
relationship they have with the business. In B2C advertisement and promotion is done to gather

the attention of the public and to make impulsive decisions after finding the appropriate suiting
their needs (Couture and et. al., 2015).
Decision making
process
B2C B2B
Recognising
need
Consumers do initiation of buying
process. If they want to buy
something they will make decision
to buy it.
Here, buying is done so that the
needs of the organisation can be
satisfied and it may help in
increasing the organisation
efficiency.
Collection of
information
Customer goes through online
platform to gather information.
They get out various options in
market and select the best one.
Here, information is gathered with
the usage of different sources
related to raw material and
thoroughly investigation is done.
Identify
theoptions
The motive behind it to satisfying
the need of the customer. lot of
option are there they need to select
the best one
Options are identified to check
from which hotel will be the best
according to the services and
packages offered by hotel
Comparing
alternatives
Here, alliterative options are
compared with one another and the
best is chosen
Here, comparison is made on the
basis of cost, quality and services as
lot of option are there for tourist as
far as hotel is concerned
Select among
various
alternatives
Best alternative is selected Business entity finalises lucrative
equipments for executing stock
ordering process.
Execute the
purchase
Final decision of buying takes
place at this level.
Here, final decision executed for
finalising equipment purchase
decision.
Evaluating the
results
Feedbacks are taken as the
evaluating experience of customer,
weather there needs are satisfied
and what can be done to improve
the services
Here, developed issues related to
hotel services are improved and all
is done to retain the relationship
with the business engaged.

P6: Evaluate the different approaches to market research and methods of research used for
understanding the decisionmaking process
Marketing research help in making refine decision by the management by giving
accurate, appropriate and timely information. There are various methods in marketing research
which can help the company to do well or to understand decision making process and act
accordingly. One of the methods is social media listening and getting idea of what actually the
customer is looking for and provides them that (Miller, Merrilees and Coghlan, 2015). One more
thing InterContinental Hotels is planning to adopt is survey, taking a sample of population and
doing surveys and understanding the buying pattern of individual, it is a very common practice
used by many company and it yields high results. The company can interview some group of
customers directly and ask them directly what they are looking for and what they think can be
improved so that their experience can be improved and they can get more satisfied and which can
immediately convince them to purchase a product. A rational answer from the customer can be
taken into consideration and company can work on it so that they can attract more public and get
more business. Another method the company can adopt is observation method, observing the
buying trends of the customers and pitching them product accordingly. It is handy as it tells what
customer is doing in the market and what type of activities are attracting them more to purchase
a package.So company can adopt the above mention research methodology to understand the
decision making process of customers.
M3: Provide a coherent and justified evaluation of how different factors influence tourism
decision-making and buying behaviour, supported by specific examples.
Tourism decision makingcan be affected by various reasons, one of them is the past
experience of the customer, and for tourism time constraints can be another factor that can affect
the decision making. If the expectation is not met it can also change the decision of the customer.
Social and cultural influence also changes decision of the customer (Brida, Meleddu and Pulina,
2013). Herein, InterContinental Hotels is working on all the factors so that it can be turned in
favor of the company and generates more tourism and productivity.The hotel is working on
applying this factor on real life experience so that they can identify their customers and turn them
to ultimate consumer, it will help them to increase the conversion rate as more conversion will be
done. Doing complete evaluation of buying behavior of the customer will result in understanding

there buying pattern and customize the package according to their needs. The customer should
get the deal according to their requirements because they have lot of option and if they did not
like any one factor it can result in a switch of the customer to other company.
TASK 4
P7: Evaluate how marketers can influence the different stages of tourism decisionmaking process
giving specific tourism examples
There are five stages for decision making of customer, the marketers can affect the
decision making stages. It need to be understand that theory doesn’t work exactly, the
InterContinental Hotels can catch customer at any stage out of 5, but they should know how to
carry forward. Company can write lot of blogs and post to attract customer in initial stage so that
they can give answer to customers what they are looking for and satisfying them. When customer
is searching for information the company can use keywords in digital media to catch attention of
the customer in the 2and stage. By optimizing the website and personalizing the content the
attention of buyer can be achieved and alternatives can be given to them so that they can get
what they were looking for and select the company out of the many other rival firms (Ganglmair-
Wooliscroft and Wooliscroft, 2016). Customizing the package according to them can help them
to opt for the company at the time of buying stage. Herein, InterContinental Hotels is working on
providing unique options and availability of something extra so thatcustomer can bend in
direction of the company over the other company while purchasing and go for the package of
their need. At the last stage services and experience should be given in a way that customer have
a lasting experience and it can sustain and help the company to build new relationship with
customers which can last for long helping the company in a long run. So this is how company
can influence the decision making stages in favor of them so that sales and market share can be
increased and competition is sustained.
Cognitive learning: The learning help in identifying the customer behavior and
accordingly product or services are pitched to them. The hotel tries to design strategy which can
influence potential customer to make buying decision. This type of learning helps the hotel to
gain competitive advantage which leads to high revenues in future.

Behavioral learning: The attitude, culture, belief of the customer is identified and
alteration in package is made accordingly so that it fits customer requirements and customer are
willing to go for the hotel offer over other offers. This type of learning helps the hotel in
developing a good level of interaction between customer and commodities so that there wants are
satisfied in rightful manner.
M4: Critically evaluate how marketers influence each stage of the decision-making process with
reference to relevant methods and models applied
All 5 states can be influenced by the marketer in a positive way and if not done right it
can get against the organization so marketer needs to be very careful. Identifying the need and
acting on it, giving the employee the best alternative according to their convenience and
influencing them to purchase the package according to their description and providing them ever
lasting experience comes under it (Xiang, Magnini and Fesenmaier, 2015). Different method and
model is adopted for the same which InterContinental Hotels can apply to achieve the desired
results. The hotel need to be active and identify what the customer is looking for. Once it is done
they need to pitch them the offer in a way that it matches their requirements. So it is needed that
thorough study is done and digital media comes handy for doing an evaluation for the same and
getting results. Marketers need to find out a perfect mix between the methods applied so that to
get the more results in favor of the hotel that too for a long term.
CONCLUSION
Therefore, from the above report it has been determined that the company is taking
customer side into consideration and using various modern techniques to influence the decision
making of the firm. The company wants to adopt modern technique and they want to use digital
marketing and network in favor of organization to gather a huge market share and to
understanding what a customer is actually looking for. Company whole motive is to rata in
customer and businesses so that they can compete in the market and increase tourism in Britain.

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