Analysis of Tourism Consumer Behaviour and Insights: TUI Group Plc

This report provides a comprehensive analysis of tourism consumer behaviour and insights, focusing on the UK's national tourism agency, TUI Group Plc. It examines various cultural, social, personal, and psychological factors influencing consumer behaviour, as well as the impact of digital technology on consumer trends. The report delves into the stages of the consumer decision-making journey and maps a path to purchase for TUI Group, emphasizing the importance for marketers to understand consumer decision-making in the tourism sector. It compares and contrasts the hospitality decision-making process in B2C and B2B contexts using specific tourism examples and evaluates different approaches to market research and methods used to understand the decision-making process. Finally, the report evaluates how marketers can influence the different stages of the tourism decision-making process, providing specific tourism examples to support the analysis and provide a comprehensive understanding of the topic.

Tourism Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. Examine various cultural, social, personal and psychological factors that influence tourism
consumer behaviour and attitudes..........................................................................................1
P2. Examine how consumer trends are changing due to the impact of digital technology....2
Task 2...............................................................................................................................................3
P3. Describing the stages of the consumer decision making journey and map a path to the
purchasing for a TUI Group Plc.............................................................................................3
P4 Explore why it is important for marketers to map a path to purchase and understand
consumer decision-making in the tourism sector .................................................................4
Task 3...............................................................................................................................................5
P5 Compare and contrast the key differences of the hospitality decision-making process in the
context of B2C and B2B using specific tourism examples. ..................................................5
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision making process...........................................................................7
Task 4...............................................................................................................................................8
P7 Evaluate how marketers can influence the different stages of tourism decision making
process giving specific tourism examples..............................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is a inspection of person, group or organisation as a customer during
buying, using, selecting of a goods or service to satisfy there needs and wants. It is important to
analyse the consumer behaviour to bring more customers to business and to retain the existing
one with there changing needs. The report will contain the tourism consumer behaviour and their
insight in context with UK's national tourism agency TUI Group Plc. It is Anglo German
Multinational tourism and travel organisation based in Hanover Germany. This company is
founded in 1923. (Bigne and et. al., 2018). The report covers influence of the various
behavioural factors on consumer behaviour and how consumer trends are changing due the
digital technology in tourism industry. The stages of the consumer decision making along with
their importance to map a path to purchase. Further the difference between B2B and B2C and
methods of market research with specific tourism examples are describes in the report.
Task 1
P1. Examine various cultural, social, personal and psychological factors that influence tourism
consumer behaviour and attitudes.
The way an individual, group or organisation act while buying the goods or services in a
marketplace is a consumer behaviour. Consumer behaviour helps an organisation to analyse the
requirements of the consumers and to fulfil those requirements with full satisfaction. A
organisation must know the influence of various factors like: cultural, personal, social and
psychological in buying behaviour of a consumer in order to create customer satisfaction and
customer retention for long term growth of companies. Influence of above factors in consumer
behaviour and attitude of TUI Group tourism agency and tourism industry: Cultural: Cultural factors are the set of values, perceptions, believes that a person inherit
from childhood in the name of culture. Cultural factors have three categories: culture,
sub-culture and social class. In tourism sector the services provided to consumers are
created by keeping in mind the culture of the consumer and the culture of the country
(Bigne and et. al., 2018). TUI Group has researched and segmented the service of tourism
on the basis of customers keen in travelling in there own country and other who want to
explore other countries culture.
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 Social: Elements such as family, friends, society, colleagues, reference groups, role and
status all this factors impact directly on the behaviour of consumers. In tourism sector
family and friends plays a important role in planning the vacations, holidays or trips.
TUI Group has implemented this factor very sharply in providing services on the bases
of friends and family visit, business visit, youth and study visit etc. Psychological: Perception, learning, beliefs, motivation and attitudes are the
psychological factors influencing the consumer behaviour. In tourism sector this factor
has crucial part to play as tourist are so aware of their needs and create a perception and
attitude toward the visit they want. TUI Group accordingly provide there service on
psychological factors of consumer.
 Personal: Age, life style, personality, self concept, occupation are the personal factors
which have impact on the buying behaviour of the consumers. Age acts as the primary
factor in tourism industry to plan their service in that manner. Keeping in mind the
lifestyle factor TUI Group has luxury service in the list.
Process of consumer decision making:
It is an important manner for business of management to get determine and evaluate the
procedure of customer decision making creation. The manner of decision making perform
various criteria with basic set of manner to measure the evaluation in the management. As there
are five sections that involves in the procedure of customer decision making that will affiliated to
their abilities that are as follows -
 Need identification - The fundamental and primary modular of activities is to determine
a way for getting determination by the consumers and visitants. So, the customers will get
alert and will create a stipulation of several goods and their services as effectively.
 Search of information - It will termed as the intermediate phase through which
consumers will require to determine their various skills for activity completed by their
economic process. By elaborating an essential term and sources of data that will
demonstrate as the to position to figure out the location in the management.
 Valuation of unconventional – In this manner of phase it will include the customers to
make decision that are capable to construct a field of manner that have various sections in
terms to create a high term of quality. As it is generally applicable for the high set of
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options available for the customers. The business will follows the basic set of stipulation
and an appropriate condition to evaluate the procedure of evaluation in the management.
 Buying decision making - It will relates to several sections for buying activity of user
actions. And it will eventually led the customers to choose their own products or services
and purchase it to fulfil their economic process. It might led to several plan of actions to
balance the designing method in the management for balancing the fields.
 Post acquisition valuation - It oriented the way of enhancing the learning sections that
might attached to the point of acquisition and their evaluation of actions that are
presented by customers as it might termed to the decision making procedure as to create
the diverse products and will satisfy by buying it and it might link to repurchase the
products and services because of their qualities.
P2. Examine how consumer trends are changing due to the impact of digital technology
Digital technology has become part and parcel of the life. In addition to this rapidly
changing technology is rapidly adapted by consumers too. These changing digital technology is
fabricating the new consumer trends or behaviours. Opportunities and challenges are coming in
hand in this tech world changing so quickly. With digital technology consumer behaviour are
more involving and positive towards the tourism sector. The tourism sector is highly benefited
with the changing technology as digitalization has made consumers only finger touch away to
access the required information related to stay, travel, accommodation, facilities and so more
(Gibson and O’Rawe, 2018). TUI Group has so well organised website with all the information
available on it so that customer have easy access to the information they require to avail the
service from the organisation. Digital technology has made consumer well aware about the
different services and there alternatives to make them benefit with best service on holiday or
vacation. The changing consumer trends due the impact of digital technology in tourism sector
are: Market research and Product comparison: Consumers in tourism sector collect all the
information required for the trip and compare services of various organisation to enjoy
the best one. Digital technology has made this process so easy and fast for the consumers. Customers higher expectation: With so many same services by different organisation
and consumers knowledge to them has created a higher expectation to satisfy their wants
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and needs. In tourism sector digital technology has made the consumer accessible to the
information which tempt them to drive pleasure with best experience.
 Security and trust: Digital technology has secured the personal information of consumers
and made them trustable about the service the travel agency giving them. Consumer
behaviour toward the tourism sector is more trusting and positive (Scuderi and Dalle
Nogare, 2018).
Task 2
P3. Describing the stages of the consumer decision making journey and map a path to the
purchasing for a TUI Group Plc.
Stages of the consumer decision journey is the buying behaviour of the consumer before
the product is bought. It is important for an organisation to understand the buying behaviour
process to build its selling strategies and helps in mapping of a path to purchase from
organisation. Problem/need recognition: a first step towards the decision making is the identification
of the need or want for a service or goods. Additionally this need or want stimulated from
the hunger of something or any problem or situation. In context with TUI Group the
mangers and the team members should recognize the needs of the travellers to segment
there services as per the requirement (Han and et. Al, 2019). Information search: when the need is recognized by the consumer the next decision
making step is to search the information for that need in the market to find the best
possible solution. This information can be searched online, by word of mouth, print outs
etc. The R&D team of TUI Group should collect the relevant information of consumers
needs and update that on the websites so that the consumers can have easy access to the
information they want. Evaluation of alternatives: Third step towards the consumer decision making behaviour
is examining of an substitute available for that particular need as to get benefit of what is
available in environment. This step occurs to customers with high involvement and
positive attitude. TUI Group as a travel agency has duty to provide the alternative choices
to customers so that customers can have satisfaction and benefits of service they provide.
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 Purchase decision: For some consumers this is final stage of decision making while for
some this is fourth stage in decision making. Final stage consumers takes the purchasing
decision to fulfil there need. But the fourth level consumer here gets disrupted by
someone or some negative feedback to rethink its decision to purchase and shifts to next
stage (Kostin, 2018). In context with TUI Group should highly focus on convincing the
consumer with it skills and keep the positive impact on customers mind and decision
regarding the service they provide to them.
Hence, TUI Group customer journey map helps them to understand the emotion, nature
and feelings of customers from the booking of trip, needs to be satisfied on the visit and their
post visit feedbacks. This mapping outlines the role of tourism sector and TUI Group to examine
the needs of customers, there search tools, there time period of trips and other elements involved
in decision making of customers so that they can grab opportunities and provide best services to
consumers (Szmigin and Piacentini, 2018).
Explain the factors that influence decision-making:
As it involves several term of factors that can vary the decision making procedure of
consumers in respect to get determine the determination and buying way of consumers. The
factors that might be utilised by the respective management and its commercialism sections in
tourism sector as in respect to have an impact on the decision making manner of their consumers
that might maximise the gross revenue and acquisition.
 Element of marketing mix - As the business of management is dealing with their project
at functional section on the organisational perceptibility to get relate with the thought of
perspective that are widely relates to the section of marketing mix. It generally termed as
the place, price, promotion, place. It might have an impact on the decision making
procedure of the management.
 Influences of new technologies - The new methods and approaches that are connected
with various new sections to get evaluated by the idea of new proficiency. As there are
various manner that are connected to e- commerce, online legal proceeding and various
purchasing conditions that are relatively get affiliated with the business and customers.
And several other sections of the period of C2C are getting increased in the modern
tendency in tourism section.
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P4 Explore why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector
It is found that consumer are the centre part of every marketer work, hence mapping
consumer journey enables TUI Group to learn more about their potential customer's purchase
journey. Map a path to purchase is a marketing approach to put a brand under the shoes of
customer in order to understand the customer expectations from the organisation and enhance
their experience from start to finish (McDaniel and Gates, 2018). The ultimate aim behind the
mapping customer journey is to remove obstacle in purchasing and make the buying process
more effective and intuitive. Mapping a path to purchase will enable TUI Group to strengthen its
relationship with the customers.
 Problem/need recognition
The first and crucial step in consumer decision making is problem and need recognition. Without
identification of customer problem, it will be very complex for Visit Britain to made a sale. Thy
key important of this proposed stage enables TUI Group to make the customer recognise that
they are having problem regarding tourism destination which only they can solve. This stage is
crucial in mapping consumer journey as identification of problem can embark on the purchase
process. A sale can be made when an organisation is successful in creation of urgency in the
mind of the customers. TUI Group is using print media advertisement, flyover, cold calls and
integrated marketing campaign for creation of urgency in the mind of customer by putting an
exciting new destination with reflective services that made need or want in the customer minds.
 Information research
Information gathering process begins just after problem recognition by the user. TUI Group have
acknowledge the issue and now they are looking to find a suitable solution. This stage is
important in mapping consumer buying journey as this reflect how TUI Group approach to the
customer problem needs (Thorun, and Diels, 2020). Consumer in this stage research various
information about the destination and the hotels by using internet. TUI Group can make use of
Google trusted stores as a range of strategies to reach the potential consumers.
 Evaluation of the alternatives
Evaluation of the alternatives means that the customer are putting lots of research work in
finding the best destination company who have better services that matches with their potential
desires. In case of TUI Group, even when their tourism service strands them out from the crowd,
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there are rare chances that a customer choose their product and services. But this stage is useful
for TUI Group to continue target their potential customers.
 Purchase decision
A selection stage is one which TUI Group and its other competitor are keenly waiting for. This
stage is crucial for TUI Group to ensure that buying process is simple and straightforward. The
final decision in selection is an important stage in mapping consumer journey, this is because
sometimes their may be negative feedback given by the buyer because of involvement of many
user in the purchase process (Morrison, 2018). These feedback will be valuable for TUI Group to
make their purchasing process more smooth and convenient.
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 two discipline of business leads B2B and B2C helps an organisation to target its
potential customer in the marketing strategy process.
B2B and B2C Market – The business of management of tourist might get relates to deal with
various set of the goods and their service that are directly related with the other field of
management, it is comparatively not time consuming and social relation of the business. B2B
market principally get solve the idea of various locations and there property. Like, the respective
management that will utilised to create the role of merchandising and getting with various other
tourist management that might phrased the sections as according to the business for balancing
tourism gratification. Hence, in B2C the management sell their choice of facilities to their
customers. So, the business of management have to utilise the top and an applicable manner of
strategies to influence the higher term of visitors. The business of management will understand
the way that how to fulfil their visitors by classifying several goods and their facilities to their
consumers and offers high term of facilities to them. The work and facilities that might get
supply to balance the several fields in the managerial section.
The marketing strategy of B2B is quite difference from the B2C marketer. Their lies
difference between the two discipline which are as follows:
Difference between B2B and B2C
Basis of Business to Business (B2B) Business to Customer (B2C)
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difference
Meaning A B2B business sells its tour product
and services to another tourism
business.
Example: TUI Group has started a
B2B platform by launching Tourism
Exchange Great Britain (TXGB) where
tourism supplier can link to several
international distributor. (Nath, Saha
and Salehi-Sangari, 2019).
A B2C tourism business sells its tour
product and services directly to
customer for their personal use only.
Example: this type of business in
tourism industry is associated to the
OTA, hotel, car rental and tour supplier
who sells their product and services
directly to customer. For instance, The
Savoy Hotel London deals in luxurious
hotel for the customer.
Buying
process
The decision regarding buying an tour
product and service has a commercial
aim. Thus there is lot time consuming
in B2B as there is rational analysis
regarding the sells. The decision
regarding to buy or buy not depends
upon the many areas of the company.
Example: a technology company
selling travel and expense management
system to TUI UK. There is
involvement of many department such
as HR and IT department to check the
whether the system is user friendly to
employees and compatible with
company policies and other systems.
The sale in B2C is more impulse, hence
the buying process in the B2C is
smaller and less rational in decision
making.
Example: a customer can take hotel
reservation directly from the trip
advisor by analysing various hotels
ranking and rating and can select the
desired one that meet with
requirements.
Focus TUI Group lead generation focuses on
the building long term relationships
with their partners.
The main focus on the generation of
the leads. Thus, the main focus is the
product and services that will brings
result and benefits to them.
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Example: Hays travel shop is the finest
travelling company who has the record
sells of tour package in the UK
Size Usually smaller in size and limited to
a boundary. TUI Group is a
government body that is undertaking
various tourism project to promote
tourism in the greater Britain.
Generally large in size and
geographically disperse.
Example: TUI UK have 1000+ tours
outlet in the various region of UK and
Europe.
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision making process
Market research is a critical approach in process of framing marketing strategy. Market
research enables the marketers to gather information for understanding the decision making
process in the tourism industry. This is because a information is critical for decision making
process. A successful marketing research should be conducted by adhering the business
objectives to identifies best method for data collection (Pantano and et. al., 2019). Different
methods of market research as following:
 Qualitative & Quantitative research method :
A qualitative research method is widely used in the big firms like TUI Group to seek the
information about consumer behaviour. A qualitative method subdue numerical data collection
and focus on the particular trend. This is thus, Qualitative method gives TUI Group in depth
understanding about the consumer behaviour this is because in depth understanding and
knowledge is required in addressing non-quantifiable information. Therefore, Qualitative
information enables a business to get more deep information regarding consumer trends and use
these information to conform to customer expectations. On the other hand, quantitative research
is collection of data and facts based on the charts, figures and statistics (Pourfakhimi, Duncan
and Coetzee, 2020)
 Online Survey:
People of this generation are busier then ever before, their most of time has spent upon the
screen. The deep penetration of internet helps marketer to collect information from their potential
customer. Through integrated market campaign, TUI Group can pool user into an online survey .
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An online survey contains a set of questioner in which responded answer by filling up the forum.
An online survey is useful in context to TUI Group to collect data from large sample size.
Furthermore, it enables a business to form sales strategies and refine the consumer purchase
journey map.
 Focus group study method:
In the focus group method, data is collected by targeting a special demographic segment. TUI
Group can target on youths for its next project by inviting 12-15 people for close ended and open
ended questions (Rėklaitis and Pilelienė, 2019).
Advantages and disadvantages
The business of management will deal with various consumer market problem solving is
connected the manner to gather the source of data that are related with the orientated field of the
business that will place high term of consumers to understand as related to their orientation and
economic process. It is important for the business of management that have high quality of goods
and facilities as per to the desires of consumers and will maximise high term of profitableness
and business productively. As there are qualitative and qualitative sections that are used by the
business of management in respect to comparative information.
In the manner of the business of management that are include in the b2b activities and
their role of strategies of market sections to get help the business management to get high term of
source of data as related to the market and the another management in the manner of the
placement sectors. Market research will also offers the extremely applicable and an adequate
term of information that are utilised by the business of management in the creating of several
managerial planning and role of strategies. If the business of management will present the
manner of the sections that are conducted research then it might be capable to get attached with
prospective and the prospect to the customers who will understand the manner as in relation to
the sources of data and get utilise their manner of performance as on the several field of
organisational task that might be completed in the management as according to the manner of
function.
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