Consumer Behavior & Digital Technology Impact: Tourism Sector Report

This report examines tourism consumer behavior, focusing on the factors that influence consumer attitudes and decision-making within the tourism context, with a particular emphasis on the impact of digital technology. The report investigates how digital advancements have reshaped consumer trends, exploring topics such as accessible information, digital business adoption, and enhanced customer experiences. It evaluates the consumer decision-making journey, including path mapping stages for tourism services, and highlights the importance of this process for marketers in understanding consumer purchase decisions. The report compares and contrasts key decisions in the hospitality sector, relating to both B2C and B2B processes, and evaluates various market research methods used to understand decision-making processes. Furthermore, it critically assesses the influence of marketers on different stages of the tourism decision-making process, using Hilton and Tripadvisor as case studies to illustrate these concepts.

Tourism consumer behaviour
and insight

Table of Contents
INTRODUCTION 3
MAIN BODY 3
Lo1 3
Investigating various factors that influence consumer attitudes & behaviour within tourism
context.........................................................................................................................................3
Determining changing consumer trends due to digital technology impact................................4
Lo2 6
Evaluation of consumer decision making journey and path mapping stages for a particular
tourism service............................................................................................................................6
Determining importance for marketers in path mapping & consumer purchase decisions
making within tourism sector......................................................................................................7
LO3 8
Compare & contrast key decisions of hospitality in relation to B2C & B2B processes with
specific examples........................................................................................................................8
Evaluation of various market research methods & approaches used to understand decision
making processes........................................................................................................................9
LO4 9
Critical evaluation of marketers influence on different stages of tourism decision making
process.........................................................................................................................................9
CONCLUSION 10
REFERENCES: 11

INTRODUCTION
Tourism sector mainly focusses on best consume experience derived from different
products & services offered by various hospitality organisations. Every consumer in market
comes with a specific need or desirable want for a commodity or service that has to be fulfilled
in time by organisation to gain maximum productivity. Therefore, various marketing activities
are conducted that can be helpful for tourism firm to influence consumer behaviours successfully
and change their decision-making process positively. One such famous organisation is Trip
advisor, which is an American online platform that operates both website & an application. This
hospitality firm have several products & services offered that includes online booking facility of
hotels, restaurants, tour packages etc. In this project the chosen organisation is Hilton which is
founded in 1919 by the Conrad Hilton. Headquarter of respective organisation is situated in
Virginia, United State and it serve its services worldwide. Also different stages of consumer
decision making procedure has been described to do path mapping of consumer purchasing
process. In relation to chosen firm, below report explains about various factors that affects
consumer behaviour within tourism sector. The below assessment also does critical evaluation of
key differences in hospitality decision-making process in relation to B2B and B2C processes.
Following report, consist of various factors that can influence consumer behaviour, market trends
through use of digital technology.

MAIN BODY
Factors that influence consumer attitude and behaviour
Consumer behaviours & decision-making processes are mainly affected by certain factors of
business environment. Some of these include cultural factors, social factors, psychological and
personal factors explained in below points: Cultural factors: Such factors are broadly determined by different tastes & preferences
of a consumer in cultural environment. Consumer having different needs, wants,
preferences, beliefs & purchasing capacity that ultimately determine their decisions for
buying a product or availing a particular service (Boo and Busser, 2018). These decisions
therefore may depend on cultures, sub cultures etc. Culture is defined as the customs and
different religious rituals, which different audiences follow. In content with Trip advisor,
does consistent analysis on different Sub cultures that comprise of various categories of
individual consumer belonging from different religions, nationalities etc. Since there are
diversity of consumers in market from different cultural backgrounds. People travel in
different locations so they want that they go to such location, which are related to their
culture. Respective make sure that their offers provided at online website meet up cultural
expectations. As Hilton organisation gain all consumers information about their taste and
preferences than provides services that satisfy customers efficiently and there are separate
department for this purpose Give examples & well as requirement of consumer such a
travel packages, accommodation faculties, transportation etc. Social factors:- It has been observed by respective firm that only culture does not impact
consumer but also their living standards, class, social status & lifestyle impact their
purchasing decisions (Choi and Choi, 2019). These factors therefore are related to set
social norms as well as lifestyle of an individual weather they are interested in travelling,
various restaurants, and avail various other website services or not. As Hilton
organisation provide services according to needs of customers that influence potential
customers. Psychological factors:- These factors consist of mainly thinking of consumers towards a
particular product or service offered. In relation with Trip advisor, mental state of an

individual broadly affects his or her purchasing decisions. Psychological drivers are
classified into motivation, perceptions and learning abilities of an individual. Political
instability influence the performance level of Hilton organisation.
 Personal factors:- These are individual factors that affect consumers purchasing
behaviour & buying decisions. Since it depend on person to person having different
preferences which personal factors affect them most such as lifestyle, personality, age or
knowledge of consumer about company. In context with Trip advisor, marketing
department majorly focus on youth, couples and travel bloggers who are keen to take part
various packages, offers & discounts offered by them. Marketing professionals of chosen
firm has also identifies that age is a primary factor that bring change in preferences of
individual. Since old age people, children and young students all have different
preferences to travel affecting offers of company at large.
Determining changing consumer trends due to digital technology impact
Digital technology now a days have impacted various traditional businesses a lot with
better techniques, approaches and software systems (Nam and et. al., 2019). These technologies
have capability to meet up various market trends with consumer new thoughts, dynamic
behaviour, changed expectations etc. One one hand technology has been able to satisfy consumer
needs but on other hand old organisation who preferred manual work have been facing various
challenges in adopting to new technologies such as online presence, digital payments etc. The
different changes that took place through introduction of digital technology in hospitality sector
are discussed below as :- Accessible & secure information:- With rising awareness of digital technology amongst
consumers in market, individuals before buying any commodity prefer checking
company's online presence & decide purchase of product as per its rating or reviews
given by past users of product. Therefore, trip advisor has made it possible for consumers
to get sufficient information of their products, services & offers on their online website &
digital platforms (Fu, 2019). Use of digital technology have also created firms in creating
brand image outside domestic boundaries globally. Social media platforms are used by
the Hilton organisation to attract customers in efficient manner.

 Adopting to digital way of business:- Consumers behaviour in today generation is
broadly impacting by digital technology. Every individual today before conducting a
purchase prefer using digital platform to get access about product information. There are
various digital platforms such internet marketing, content marketing as well as social
media marketing that influences customers and spread awareness about organisational
services. Therefore, it has become a necessity for firms to have digital presence as well as
adapt to new technologies in market to beat up market competition. Effective customer experience:- Major focus of consumers in market is what experience
they derived from consuming a product or experiencing a service form organisation. In
context with Trip advisor uses different research methods or digital technology to analyse
reviews of previous consumers. This help chosen organisation improve exiting product or
service as well as enhance consumer experiences.
 Diversified expectations:- With rise use of digital technology top grow or develop
business within tourism sector, it is important for managers to identify actual expectation
of customer in market (Liu, Wu and Li,2019). With changes in dynamic trends, people
belonging form different background approaching online website come up with
diversified needs or wants that chosen tourism entity needs to fulfil by pre, current & post
analysis.
LO2
Consumer decisions are uncertain & therefore it is important for firms to determine
stages of decision-making process adopted by consumer to take buying decision discussed
below: Problem recognition:- This is first stage when consumer is unaware or is having a plague
idea about company & its product services. Therefore, Trip-advisor at this stage identifies
what are actual problems faced by consumers that can be solved through their products.
Consumers too at at recognitions stage in which they are trying to find out their own
preferences & needs. Information search:- This is informative stage where consumer is willing to gain as
much information impossible about company & product to know weather their needs are
actually matching product features or not.

 Alternative evaluation:- This is third stage when customer is aware of his needs &
services offered by organisation (Ghaderi, Hatamifar and Henderson, 2018). But this is
important to compare one firm's products with another to choose from various alternative
options available in market. In relation with Trip advisor have found out that before
taking this decision consumers keep into consideration various factors that are price,
quality ,experience, reviews & delivery of products etc. Purchase decision:- This stage comprise of final decision of buyer to purchase particular
product or avail specific service. In relevance with Trip advisor, consumers who are clear
about their decisions are potential candidates who are willing to buy products form
organisation. It is important to majorly focus upon their experiences so that they revisit
company website again for purchasing. Post purchase evaluation:- This stage after purchase of product taken by buyer through
evaluation of product. It comprise of examining weather actual product or service has
been able to satisfy want of customers or not.
Path mapping of customer decisions in tourism sector:- Choose from alternative options- In context with Trip advisor it has been identified that
consumers take into consideration various factors to choose best plan or service from
tourism companies (Moutinho and Vargas-Sanchez, 2018). These depends on their
spending capacity, desires from different vacation places, objectives behind visit,
duration of holiday planning for a tour. Bookings:- It depends on customer preference weather buyer is interested in pre booking
of tickets or hotel location or is preferring to pay at the time of visit through self
observation. Activities on holiday:- In relation with chosen travel company, digital marketers have
found out that people with booking for a travel destination also do search on various
other things. This includes nearby food facilities, cafes, attractive destination locations,
transportation charges or facilities etc. before visiting.
 On & post holiday:- People generally use various online sources to track best location
after reaching desired vacation place. Furthermore, as soon as their tour ends various
customers are willing to give true feedback of how was their experience from travel
company service & place.

Importance of consumer mapping path
In relevance with selected online tourism platform, there are various benefits of mapping
path of consumer decision making. Since mapping of path help company determine what
actually customer needs from various alternatives firm already offers. It becomes easy for
marketers to pitch potential consumer segment instead of wasting time
& money on those who are not necessarily in need for those services or products. In relation to
Trip advisor, have been observing through various research methods that most of people who are
attracted to their services (Rather, 2020). These individuals mainly are online surfing enthusiasts,
travel bloggers, business professionals, families planning for tours, couples who prefer changing
visit locations and youth who like travelling to new restaurants etc.
One of major importance to customer path journey is that online website such as Trip
advisor does digital marketing to help consumer with their on boarding process of buying
product by assisting them with company’s key benefits. It helps in benchmarking of varied
experiences of consumers with current buyers. It also helps firm identify different behaviour of
personnel visiting their website for certain reasons and finally convert them into potential buyers.
LO3
B2B: This is mainly transaction of goods or services amongst two business organisations.
Major motive of such firms is to enhance productivity & profitability at large by purchasing
appropriate goods as per customer expectations from another business to be sold in future.
B2C: This refers to direct transaction amongst buyers & sellers of product or service. The
business manufactures or sells products directly to final end users. These are actual consumers
who are going to avail company services.
Difference between B2B and B2C:
Basis B2B B2C
Target
audience
Sellers are key decision taking
authorities in business.
Organisations are actual target
audiences who buy products or
services from other firms in bulk
quantities (Murphy, Gretzel and
Consumers in market are direct target
audiences of business organisations.
Therefore, it is important for Trip
advisor to apply various marketing tools
such as effective advertisements,
vouchers of tour packages or coupons to

Pesonen, 2019). attract maximum buyers in market.
Application Major objective behind decision-
making processes of firms buying
from other organisation depends on
knowledge of brand in terms of
cheap & good quality bulk products
available at reasonable rates.
Tourism mainly focus on satisfying
consumers of market that are attracted
towards their services & are willing to
invest in plans as well as avail services.
In relation with trip advisor following
online platforms directly connects with
all online users through digital
technology to provide potential people
with useful information about their
services.
Decision
making process
The process of decision making
involves indulgence of many
factors on the basis of transaction.
It is necessary for the party to
determine factors have to loss in
the negotiation and decision
making process. In B2B, factors
involve directly related to
business like economic conditions
and presence of demand. This
impacts the decision making of
both parties as have to bear with
existing conditions too. For
example, while ascertaining B2B
relation within tourism industry
between airline companies and
accommodation providers then
have to consider the aspects like
demand and rate of inflation and
In respect of B2C, the situation is totally
different where main purpose of an
organisation is to earn profit by charging
or adding amount over cost. Here,
decision making process of both is
totally different because factors
involving during a transaction are
different both. Businesses focus over
charging cost, loss in resources
investment of time etc. while, consumers
having perception about the quality,
substitution etc. For ex., in tourism
industry, lots of services are given by
different players according to the nature
or characteristics of buyer. This is so
because can able to match the process of
decision making from where able to gain
positive responses. There are many
consumers existing with different

deflation before to the finalisation
of contract. This is so because
help to grab significant nature of
opportunities. Up and down in
such factors further leads to
change in pricings and contract
conditions.
demands such as low cost service,
luxury service, contract for availing all
services, contract for having
accommodation only etc. So, as per the
demand and market factors, decision
will be taken by both parties before to
involve under valid contract.
There are various ways based on which organisation create effective marketing strategies
to influence its potential buyers. In order to know consumer demand as well as tastes &
preferences, various methods of research are conducted mentioned below:
Surveys and questionnaires: Surveys in market are taken from people in market to
know their opinions about various product & services (Varkaris and Neuhofer, 2017).
Questionnaires on other hand help marketers of firm know needs or expectations of buyer in
future from certain commodity or service. In relation with trip advisor, company conducts
market research on online websites based on different reviews given by consumers on site to
know root cause behind lack of services that require improvements.
Focus groups: This form of research methodology comprise of a central location
discussion by leaders of respective firm to know view points of general public on company
services. These focus groups majorly put up different questions that can be answered collectively
to know ideologies of people for Travel Company in hospitality sector.
Hereby, different form of researching tools is used to collect data that can be converted
by organisation into useful information. This consists of preferences of consumers, ideas for new
products or services, satisfaction level of potential customers etc.
Research approaches: There are various research approaches are used by the researcher to
collect relative information and data that facilitates him to solve particular problem and gain
suitable solution in order to complete research in efficient manner.
Qualitative research: Qualitative research is defined as the approach that included various
aspects such as grounded research, action as well as narrative research. It relies on data that is
obtained by the first-hand observations, questionnaire, interviews and focus groups.

Quantitative research: Quantitative research is described as the research strategy which
focused on the quantifying the data collection and analyse it in effective manner. In this research
numerical data, facts and figures are collect by the researcher.
All these research methods facilitates customers as well as organisation to take effective
decision that help to attain all defined goals and objectives.
LO4
Marketers create effective strategies to influence consumers in market by critical
evaluation of their decision making process discussed as:
 Need recognition: Predetermining needs of consumers help marketers evaluate various
preferences of individuals in market (Dredge and Gyimóthy, 2017). In relation with trip
advisor, marketeers have been evaluating number of consumers captured by firms and
others who switched to another product to determine actual improvements required for
better influencing purchasing decisions. In this stage customers evaluate all needs and
demands and market products accordingly through applying various research than
produce effective planning that help to influence customers and retain them with
organisation for long period of time.
 Appropriate information: In context with trip advisor, its website contains adequate
information about company to be communicated to individual visiting online platforms as
well as offers such as discounts, packages, travel plans and vouchers etc. providing
effective services to customers. All information about customer’s needs, demands and
preferences are evaluated such as Hilton Hotel conduct various primary as well as
secondary researches in order to gain information and data. Various online platforms help
to gain effective data about the organisational product and services.
 Evaluation of alternatives: There are various blogs written by travel bloggers,
experienced journalists that help website visitors with assistance on how to purchase a
particular product or avail service. This is a fruitful activity organized by trip advisor to
guide its potential buyers with taking appropriate option of buying. There are various
alternatives are available than evaluate all alternatives al select the best one that help in
satisfying all customer needs and demands in efficient manner.

 Purchasing decision-making: Major activity in this stage of consumer decision making
is evaluating weather consumers were provided with delivery of product or service on
time as required or not (Jackson, 2019). Marketers of chosen firm make sure if there is
any delay or technical issue to correct it in future operations making trip advisor platform
more effective. In this phrase customers take purchasing decisions about the product and
pay for the respective services that satisfied all needs and demands in effective manner.
 Post purchase evaluation: This stage is also an evaluating stage for company to know
what satisfaction level was derived from their service to buyers for bringing up better
version of themselves next time. Customers evaluate all post services that are provided by
the organisation after purchase that help them to fulfil their needs.
CONCLUSION
The above report concludes various factors that influence customer decisions in tourism
industry. There are stages of how consumer think & decide to buy a product or service that
requires path mapping. Below report also explains various stages of how to do path mapping of
customer decisions with its relation to both B2B and B2C businesses. Furthermore, above
assessment comprise of different research methods used by chosen organisation to satisfy
consumer expectations as well as critical evaluation of processes of consume decision-making
stages.