Factors Influencing Tourism Consumer Behavior: A Detailed Report

This report delves into the multifaceted realm of tourism consumer behavior, examining the social, cultural, psychological, and personal factors that shape consumer choices within the industry, using examples from TUI UK and other companies like Costsaver and Trafalgar. It explores the evolving landscape of consumer trends driven by digital technology, highlighting its impact on bookings, payments, and health considerations. The report dissects the consumer decision-making journey, mapping the path to purchase for tourism services and emphasizing the importance of this understanding for marketers. It compares B2C and B2B approaches to decision-making within the tourism sector and evaluates various market research methods used to understand consumer behavior, offering insights into how marketers can effectively influence each stage of the consumer journey. The report also discusses the impact of factors such as tangibility, reliability, responsiveness, and assurance on consumer behavior, further explaining the extensive problem-solving and the consumer decision-making process.

Tourism Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION ..........................................................................................................................3
P1 Investigation of various social, cultural, psychological and personal factors that impact
tourism consumer behaviour along with different examples......................................................3
P2 Explanation of how consumer trends are changing due to digital technology .....................5
PART 2 ...........................................................................................................................................6
P3 Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service.......................................................................................6
P4 Explore why it is important for marketers to map a path to purchase and understand
consumer decision making in the tourism sector........................................................................7
P5 Compare and contrast the key differences of the tourism decision-making process in the
context of B2C and B2B.............................................................................................................9
P6 Evaluate the various approaches to market research & methods of research adopted for
understanding the decision-making procedure..........................................................................11
P7 Examine how marketers and influencing different stages which result as tourism making
effective decisions. ...................................................................................................................12
CONCLUSION .............................................................................................................................14
REFRENCES.................................................................................................................................15
Books and Journal.....................................................................................................................15

INTRODUCTION
Consumer are indifferent from each other and come up with different behaviour and
nature in making their purchase into the market. This behaviour reflects their perspective towards
products purchase and selecting the best one as per their preference. Organisation needs to
analyse different aspects of different customers before servicing goods and services so that they
would not be left with dead or leftover stock. It drives the response which customers are giving
in relation to the product quality and re consume. So that it is necessary to retain them for longer
period. This report will be covering the area of TUI UK and Ireland. It is a tourism company
which has started their services in 1923. Costsaver and Trafalgar company is also taken into
consideration to support the arguments. These two organisation are mainly known for providing
tour packages. With respect to TUI UK, it has first established in German and now scattered their
operation in whole wide would. The company has diversified operation in stay at hotels, tourism
package, resorts, holiday packages and many more. Due to wide scope of tourism sector and high
competition which provide various choices to consumer in order to shift their demand. The
report has categorised in two sections (Loureiro, Gorgus and Kaufmann, 2017). First one is
going to evaluate about factors which influence on consumer behaviour such as cultural,
personal, social and physiological with the help of relevant examples for better understanding.
Also, impact of digital technologies in changing consumer demands in tourism industry.
Moreover, second part going to cover relevance of consumer decision making as per t marketers
in involving a better path. How B2B and B2C approaches are helpful in whole decision making
process has discussed.
P1 Investigation of various social, cultural, psychological and personal factors that impact
tourism consumer behaviour along with different examples
Consumer behaviour reflects the nature of people towards purchase of any product and
using services. Organisations needs to first analyse the actual trends and need of customer to
attract number of audience towards organisation product. It gives several benefits to organisation
in developing brand identity and set a good image into consumer mind. To avail these benefits,
organisations needs to analyse important factors so that they could make more of satisfactory

products (Liobikienė and Bernatonienė, 2017). TUI UK has evaluated the list of factors that
impacted on their services by comparing them with other examples. These are mentioned below:
Social factors: These factors include social values of customers such as their friends, peers,
family and other important aspect which has affect in their life. Consumers not only demand by
all themselves rather they prefer to discuss with their family or friends. Which influence on their
life and different thinking leads a win towards changing demands. Tourism sectors has to take
appropriate decision in providing innovative services as per customer age. Middle level age
group are more concerned in this factors as they usually prefer to have clubs and resorts into
their fun activity. On the other hand aged group desires to have spiritual places. So that TUI has
to formate their packages as per their requirements (Gummerus, von Koskull and Kowalkowski,
2017).
Cultural factors: These factors are based on people value and beliefs through which they set
their ideas and prospective in relation to involve something into their life. Middle level people
like to have minimum range packages of nearby cities. Whereas, high level people demand for
other cities with high class services. In relation with Costsaver, they offer attractive packages as
per demand of these middle and lower class segments. The company provide facilities for every
age group with reasonable price so that their income factor would not come in between thinking
of purchase.
Psychological factors: These factors encourage involvement of all the factors in decision
making. Which include family, friends as well as market components. Tourism sector has to
verify these norms of consumer behaviour that creates hurdle in making their purchase. For that
instance, people are now affected by digital sources and make analysis through reviews and
feedback. TUI has their own web link through which they provide relevant services for customer
preference and and maintain their website up to date.
Personal factors; Under these factors, customer are bound their era as per their income group,
age, economic conditions and many more. According to personal factors, low income people
prefer to take minimum amount of package once in a year where as, good income level people
seasonally demand for high packages 2-3 times in a year. Trafalgar company make their
consumer analyse in order to gain competition and provide attractive packages as per their level
of income (D’Oca and et. al., 2017).

Apart from these factors. The company has to go through with various tasks and
challenges in order to maintain their brand effectiveness.
Tangibility: Company have to be active to maintain their visibility in front of customers to
enhance profitability.
Reliability & Responsiveness : The company retain their relatability and quality services so
that customer could make their trust and comeback for further purchase.
Assurance: To maintain quality into their service. Company provide effective training
programmes and be expert in solving customer issues.
P2 Explanation of how consumer trends are changing due to digital technology
Innovation and digital sources has not only affected consumer but organisation also. As
it has universal need In order to save time, money and avail good opportunities. In tourism
sector, digital technology has been important part to take orders, bookings and cashless payment
to eliminate delays and enhance productivity. For this instance, customers prefer organisation
services into their desired trends. TUI revels some important trends which are mentioned below:
Impact of Technology: Due to growing technological advancement, every business has affected
by its significance in order to make effective changes in providing products and services. For that
instance, TUI managers are engage in upgrade to their operations so that services could come up
with more innovation. In relation with cost saver, has innovative aspects of providing services as
they enable digital bookings through which clients could easily book and cancel their packages.
Their bookings are flexible and free from any fraudulent activity. They take responsibility of
each client to make sure about their security service.
Increases focus on health: Costumers influence by their health concerns through which they
posses to be in good environment and take appropriate measures. For this instance TUI adapt
various technology which assure sanitized and proper cleaning into their hotel rooms and food
services (Guha and Kumar, 2018).
New roles for staff : Growing digital and online sources of booking and handling customer via
online platforms. There is need of large human force to provide 24/7 hours services in order to
provide solutions and solve any queries regarding travel services. This engage involvement of
communication systems and software. TUI has all proper system to handle customers effectively
also, Trafalgar company makes improvisation into hiring new professional to increase digital

growth. Whereas, Costsaver believe in retaining existing employees and make them train to get
into digital world.
PART 2
P3 Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service
Consumers are different and has several ideas and thoughts of their own through which
they think before taking any step towards purchasing. As they want only money worth
satisfaction which satisfy their utility. For that aspect they through with all the option available
with them to choose the most appropriate one and show their response on product effectiveness.
They response either in positive or in negative manner through reviews or comeback. These
behaviour are the copy of their actions which they shows while making their demand. TUI group
of organisation needs an evaluation of study about people behaviour which affects on
organisation growth and enable them to map their path into effective manner. Customers take
their decisions affected by various issues and aspects. The organisation has studied the way
which influence customer purchase (Jun and Park, 2017). These are mentioned below:
Problem or Need Recognition: The first factor of consumer behaviour are their problems in
making their purchase. For that, customer ensure what they really want and what they don't. At
this stage, TUI group of managers needs to acknowledge deep recognition of customers wants
and needs by getting proper market analysis and organise whole of their resources in making
their services superior to get a high competitive edge.
Search Process/Collecting Information: Consumer make their decision after attempting to this
step. In which they make heir decisions of purchase after go searching for their substitutes on
low cost expectation. They go through with companies offerings and connect it with to their
desires and wants. Customers get influence by social media, newspaper, magazines and articles
which are the reason behind their wants of getting connected with trends. TUI marketing
managers get close connection with customers to get exact knowledge about their wants.
Evaluating Alternatives: The customers then move on to next step of evaluating all the
alternative sources from which they could fulfil their desires by setting up their budgets and
make appropriate decision of selecting the best one which gave them the relevant quality,
quality and price satisfaction. They prefer to opt the most feasible product and services. Once the

customer fund the most suitable product which they are looking for they make them their priority
and demand for future use also. With this instance, TUI group need to operate with such unique
and reliable services at their hotel and in terms of providing packages. They need to be clear
about all concerns which a customer could make at their hotel.
Selection Stage/Purchase: at this point of stage which is the most essential one and targeted one
for organisation. In this stage consumer make their overall purchase by going through with all
the stages and come to reliable decision of getting the product and service. After making
purchase, TUI mangers could take reviews and their most liked feature from customers so that
they would also get finalised on choosing their appropriate strategy. Also, they could convert
their negative experience with positive outcomes in future.
Evaluation of Decision/Post Purchase: At this last stage, after making purchase of their final
product. Customers analyse its impact on their needs and requirement and compare it with past
purchase so that it could identify whether the product has solved their problems and criteria of
search (Mimoun, Poncin and Garnier, 2017). So that, the customers will think about their future
actions and behave according to that. Through this, customer automatically come to a clear
decision of their desires. TUI UK have to make sure about what they are serving in their final
outcome in order on enhance their sales by their reviews and customers experience into
consideration.
There are various level of tourism consumer decision making which are classified below:
Extensive problem solving: under this problem solving criteria, customers are unaware about
products and its services that require full details when they optimise need fro its requirement.
TUI group provide exclusive details on their websites also, make personal connection to solve
customer issue through text and phone calls.
Limited problem solving: under this level of decision making, costumers have some knowledge
about the service and product and does not require the whole detail. TUI group has all sources
through which customers get to know about their services. moreover, company provides
attractive packages under they consist details of the whole.
Response behaviour: under this decision making criteria, customers are required with very tiny
information of just say they just want to know price and product quality in order to make
purchase decision.

These path ways will be helpful for TUI organisation by analysing all the behaviour of all
customers to make best strategies and services which customer could not neglect of taking thi9er
advantage and enhance organisation profitability.
P4 Explore why it is important for marketers to map a path to purchase and understand consumer
decision making in the tourism sector
Organisational marketers plays the most important part of managing and retaining
companies brand into well and efficient manner through which they can evaluate the strategies to
cross the path successfully. In order to solve the problems, there is need of knowing the problems
and take a deep evaluation of its aspects. Marketers are the ones who implement the plans to
analyse accurate customer behaviours. TUI UK and Ireland make their promotional strategies to
be active, attractive and effective in their services which people are looking for their experience.
So that the discussed stages are appropriate to take further steps in carry out operation as per
customers demand and well-being. (Chung, Song and Lee, 2017). therefore, this will maintain a
unique identity of brand into market as customers are the main variable for an organisation who
needs to be happy and satisfied for organisation to attain several benefit of market opportunities.
An appropriate analysis have made clear about the areas of consumer decision making stages
will is carry out by specific examples below:
Problem or Need Recognition- This factor is closely related to analysing customer problems.
understanding problem is the main part for an organisation to make solution. In simple words,
problem gives rise to solutions. For the mangers of TUI organisation, before making any
strategies regarding services, knowing what does customers really wants opens them with a clear
way to execute their plans. This will beneficial to know the behaviour and human tendency of
thinki9nhg and buying any product or services.
Search Process/Collecting Information: This stage has signifies its relevance in building
appropriate strategies to be effective in serving. Customers collect relevant data about products
from various sources, so that this is the important duty of TUI managers to provide relevant data
about their company into various sources and firstly, creates good image into market so that the
data would not lack with any authenticity. This will impact the decision making of customers. At
this stage, marketers enables their promotional strategy and target the market by proper segments
(Khalid and et. al., 2017).

Evaluating Alternatives: This stage creates the awareness about market competition of similar
product or service. This enables the marketers to analyse about market competition when serve
similar products and rendering services. After analysing the market. TUI markets needs to be
rare in their product so that customer will not be left with any alternatives and select the desired
one. For this, being active into market will result in more knowledge and understanding of its
significance. Marketers needs to be clear about their segments and unique quality of products
over their competitive rivalry. So that it would enable appropriate strategy against rival firms.
Selection Stage/Purchase- As per this stage, consumer make their final selection after choosing
product of their relevance. Marketers need to be effective in giving services when customers
desires take their services. It is a two way concept for marketers that bound them to fulfil the
target until the customer would not left the place. As with TUI tourism, employees could not set
their customers free before they get the desired experience from the hotel. Moreover, they must
provide them with possible after sale services and get their reviews which will shows what they
have served and what needs to be in future.
Evaluation of Decision/Post Purchase- This last stage enables reflects the loyalty of customers.
Which shows whether they will make the next arrival or not. As they being the most important
part for the organisation. Their retention is the main factors which organisation desires to
maintain. Loyal customers are essential for organisation to retain. TUI marketers could welcome
customers comeback by giving them with discounts and offers and make their presence
countable (Shaikh and et. al., 2017).
Through these examples, it is clear that setting up path is essential to formulate strategies
and go through with customer behaviour into large marketplace.
P5 Compare and contrast the key differences of the tourism decision-making process in the
context of B2C and B2B
It is often seen that within a business organisation there is a difference in decision making
process of both B2B and B2C businesses. The objectives of these businesses are also different
and it is necessary that both of these businesses and making sure that they are selling significant
customer products and services. It is necessary that both of these businesses are following all
the requirements and making sure that their strategies are based upon their customer. In order to
make sure that they are entering into the market and prominent goals and objectives of the
organisation are fulfilled it is necessary to make productive offers to the customers. The

consumer for both the businesses has different requirements which is to be fulfilled by the
business. Below mentioned is the difference carried upon between B2B and B2C business and
their decision making process:
Basis of difference Business to Business Business to Consumer
Buying behaviour and
decisions
In B2B the consumers are
judging prominent elements
which usually include the
quality and quantity of
products. It is necessary for
business to make sure that
they are charging affordable
prices for the consumer and
making sure that their
promotional techniques are
attracting huge number of
consumers.
When taking TUI into
consideration they are
successfully offering various
products and services in order
to make sure that various
elements suggest pricing,
taste and preference of
consumers are taken into
account. Is necessary that all
the required knowledge is
used so that businesses can
achieve their objectives and
gain results from it.
Analyse requirements B2B is required to analyse
various areas of services in
order to cover huge graphical
boundaries. It is necessary
that they are meeting the
requirement of both supply
and demand successfully.
When taking B2C the
companies are required to
identify the trends in market
in order to make sure that the
consumer needs and demands
are fulfilled. The consumers
of B2C market have a number
of options available to them
due to which it is necessary
for businesses to focus on
their requirement.

Market scope In B2C market it is required
to understand the needs of
consumer and also businesses.
B2B businesses are required
to analyse the requirement of
different businesses which is
highly dependent upon the
end consumer. They are
required to achieve
bargaining power over their
competitors so that they can
successfully deal with their
consumers.
When taking the market of
TUI and its scope into
consideration. It is seen that
the consumer change their
needs and requirements from
time to time. It is necessary
for business to conduct
market research from time to
time in order to understand
the changing requirements of
consumers and fulfil them.
Therefore, with the help of the above discussion it can be clearly seen that both of these
businesses are necessary in order to make sure that the customers are served successfully and all
the objectives of business are also fulfilled along with it.
P6 Evaluate the various approaches to market research & methods of research adopted for
understanding the decision-making procedure
For a business entity, it is significant to gather data & concerning statistics in order to
identify taste as well as preferences of the customers prevailing at marketplace (Kaur, 2017). The
different forms of business involve B2C and B2B that tends to make use of various approaches
for research depend on the nature of business & objectives, which are as follows:
Research approach for Business to Customer businesses:
It is analysed that every organisation make use of different approaches in order to gather
information as it help in getting better results and are as follows:
Survey: It is considered as an important approach for collecting information as well as
knowledge that help in knowing about taste and preferences. In context to this, prominent

data and information is gathered and collected from large number of customers which help
organisation to remain competitive at marketplace.
Interview: It is undertaken as one of the manner to collect information about the interest are of
customers associated with TUI UK and Ireland. It is determined that with the help of such
method an organisation is able to know about customer requirements face to face and
develop good relationship with them a well (Ourahmoune, 2016).
Market research in terms of B2B businesses:
For Business to business, different factors are advantageous for collecting information &
knowledge associated to the secondary source such as Journal papers, articles, government
publications and many more. In relation to TUI UK and Ireland, it tends to gather proper
information that is collected by several factors: Books and Records: Businesses to businesses tends to gather data with the assistance of
records as well as books that are available in market. It is determined that it occur less
cost to organisation as compare to other sources. With the assistance of public records,
organisation tends to identify the market trends that help in developing effective
strategies for selling the products as well as services. In relation to TUI UK and Ireland,
they make use of respective ways for developing desired products for the customers.
 Government Publications: It is helpful for an organisation to admit data as well as
knowledge by prominently studying important documents in an appropriate manner. IN
relation to this, government tends to conduct various forms of research for bringing
prominent enhancement in life of people as it directly contributes towards development
of economy (Nguyen, 2016). With reference to TUI UK and Ireland, they prefer to opt
secondary data collection for gaining insight about market area and to become more
competitive.
For this, additional research methods are as follows:
Economic view model: It represent that customers are mainly rational individuals & take
logical decisions at the time of purchasing goods as well as services. In addition to this, it also
tends to distinguish different commodities for identifying their advantages as well as
disadvantages that help in getting prominent results. In context to this, it is analysed that
customer possesses prominent ability for ranking products as per their price and quality.