Consumer Behavior and Insights in the Tourism Industry: TUI Group

This report provides a comprehensive analysis of consumer behavior within the tourism industry, focusing on the context of TUI Group. It explores the various social, cultural, personal, and psychological factors that influence consumer attitudes and purchasing decisions. The report examines ho...Read More

Tourism Consumer
Behaviour and
Insight
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................7
TASK 4............................................................................................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Consumer behaviour is described as a process in which the decision taken by the
organisation for satisfies the need and requirement of buyer. It is necessary to analyse the
behaviour and attitude of buyer towards how they buy products and services and in what way
they dispose them off. In addition to this, it is necessary for marketer to make effective strategy,
policy and procedure for identifying the changing need and wants of consumer. This report is
carried upon TUI Group. It is Anglo-German international company of tourism sector which is
located in Hannover, Germany. The main purpose is to assess the various factor which imposes
direct impact on the behaviour of buyer within tourism industry. Beside from this, it has been
analyses that it is vital for marketer to assess the need and requirement of consumer in order to
satisfy them (Jackson, 2019).
TASK 1
P1 Define the various social, cultural, personal and Psychological factor that stimulate consumer
behaviour and attitude with a tourism context.
It is necessary to identify the behaviour of consumer towards products and a service is
considered as consumer behaviour. In context of TUI, It is necessary to assess the consumer
behaviour towards goods as well as services. It helps the group in assessing the changing demand
of consumer during the period of time. They offer innovative product is well services to its
customer for increasing their sales and building reputation as well as Goodwill of Organisation in
mindset of customer at market. It helps the organisation in manufacturing those products that
satisfy the need of consumer. In addition to this, they also discuss about how different factors
imposes direct impact on the purchasing behaviour and attitude of buyer. In context of TUI
Group, the top management focuses on identifying those elements which directly affect the
consumer behaviour that is going to be mentioned below:
 Cultural Factor: Cultural factor are those which imposes direct impact on norms,
beliefs, value, customs as well as perception that is influenced by the culture. The buyer
is separated into various class such as high, middle and low. In reference of TUI Group,
they offer packages based on the class of its consumer. For example, a low class person
travels according to their financial plan.

 Social Factor: Social factor includes family, society, friends and many more who are
close by its consumer. The buying behaviour of consumer imposes direct impact on the
individual person. In context of Tourism industry, the user is divided according to their
age as well as income. For instance, old age person want to travel religious places while
the youth generation want to go clubs, bars and many more.
 Personal Factor: There are many factors such as financial situation, age as well as
lifestyle which impose direct impact on the buying behaviour of buyer. In present
scenario of Tourism industry, the young person want to go for outing according to their
budget as well as income (Held, 2018).
 Psychological Factor:It includes learning, beliefs, motivation and attitude of buyer
which is necessary to consider for determining the purchasing behaviour of consumer. In
relation of Tourism Industry, the individual person who want to travel must discuss with
his friends as well as family that imposes direct impact on consumer behaviour. At the
present time, the consumer reviews is very important for taking the decision whether the
buyer prefer to go there or not.
In addition to these elements, there are several issues and challenges faced by the
organisation for fulfilling the need and wants of consumers. Thus, the marketer focuses on
some factors that helps the companies in providing appropriate services to its user which is
going to be mentioned below:
 Tangibility: it is necessary for marketer to offer the complete information to its buyer
that helps in maintaining visibility in the mindset of its user. It helps in increasing the
loyalty and trust level of buyer for TUI company.
 Reliability and Responsiveness: The reliability of company towards their promises
helps in retaining customer for a longer period of time as well as increase the market
share of TUI company.
 Assurance: It is important for the employees to have skill and competence in order to
resolve the problems of buyer. It helps in boosting the satisfaction level of consumer as
well as its market share.
P2 Explore how consumer trends are changing due to the effect of digital technology.
Technology plays an important role for the success of every organisation. Due to
implementation of advanced technology, the buyer get complete information related to its

products and services rapidly(Varkaris andNeuhofer, 2017). In addition to this, it is vital for
Tourism sector to adopt the digital technology in order to achieve the competitive advantage over
rival firm. It helps the organisation to provide superior quality services to its customer in order to
satisfy them. In reference of TUI Group, there are different trends and style of buyer which
imposes direct impact on tourism sector that is going to be mentioned below:
 Impact of Technology: It is important for the company to implement the advanced
technology for providing the effective services to their consumer according to their
needs. In relation of TUI Group, the manager focuses on offering accessibility and
convenience to its user by evolving official sites. In addition to this, the innovative
technology assists the TUI Group to sustain the loyal and trustworthy consumer for a
longer period of time.
 Increases focus on health: Due to increase in health consciousness of individual person,
they want to go only those places which provide them positivity as well as healthy
environment. In relation of TUI Group, the manager focuses on providing safe and secure
environment in order to attract ample of customers.
 New roles for staff: In present context, the consumer prefer to resolve their issues and
problems quickly (Choi and Park, 2017).Therefore, it is important for the manager of
TUI Group to recruit highly competent and skilled employees who can easily resolve the
customer issues. Also they provide the effective services to its consumer according to
their need and wants. Furthermore, it is vital for the manager to adopt the changes related
to the customer trends and fashion. It helps the employees in providing the superior
quality services to its user in order to satisfy them.
CONSUMER BEHAVIOUR MODEL
Howrard and Sheth model of consumer behaviour is used for analysing the behaviour of
consumer towards their purchasing particular brand or goods during the period of time. There are
four main things which is explained in this model that is going to be mentioned below
Input it involve all the factor in relation to the product, price as well as provide the
quality or differentiate product with customer at relatively less price as well as they also consider
the various social factor for satisfying the need of consumer at market place.
Perceptual construct it help in collection of necessary information through which they
assess the behaviour of consumer during the period of time.

Learning constructs here in the collection of information help the marketing team in
assessing the necessity of customer for satisfying they need in an improved manner.
Output It involve not only buying process but also the impact on learning as well as
perception that is necessary to assess the behaviour of consumer during the period of time.
TASK 2
P3 Determine the different level of consumer decision making journey and map a path to
purchase and understand consumer decision making in the tourism sector.
Decision making process is considered as a process in which the company select the best
one among the given alternative. In addition to this, it is necessary to assess the needs of
consumer, collect the information, assess the alternative and then taking an effective decision
towards buying the particular products and services. The decision making process helps the
company in achieving a leading position at marketplace. In context of TUI Group, the top
management focuses on identify the need and wants of consumer before introducing innovative
services at marketplace. There are different phases that helps in taking effective decision which
is going to be mentioned below:
 Need Recognition : it is necessary to assess the need and wants of buyer before
launching the new services within market. In reference of TUI Group, the manager
focuses on identifying the requirement of buyer as well as changing trend and lifestyle
of the market..
Searching & collecting information :After analysing the need and wants of consumer, it is
necessary for marketer to gather suitable information related to the product of rival firm in order
to gain competitive advantage at marketplace(Scarles and Lester, 2016). In reference of TUI
Group, the top management collect the necessary information in order to gain competitive
benefits over rival firms.
 Evaluation of alternatives : After collecting the effective information , the manager
make effective strategies related to the expenditure which are incurred in producing the
innovative products and services in comparison of its competitive firm. They identify the
feature of substitute products that helps them in providing innovative and specific
products and services to its consumer at marketplace.
 Purchasing goods& services : Herein, the consumer take decision related to purchasing
theproducts or not(Ganglmair-Wooliscroft and Wooliscroft, 2016). In related of TUI

Group, the customer assess the products and services which is provided by the various
firm and taking the decision according to their needs and wants.
 Post-purchase evaluation : This is the after sales services which is given to consumer by
the company. In discourse to TUI Group, the top management offer addition services to
its user in order to satisfy them. For this purpose, it is necessary to conduct the official
meeting with its subordinates.
 Pre-purchase: The user assess the apartment where they conduct the official meeting. In
assistance of this, they identify the number of audience to make reservation.
 Purchase: After selecting the venue, the consumer assess those services which is offer by
the hotel to its user. In context of TUI Group, the consumer choose those travel agency
who provides the superior quality services to its user in an effective manner.
 Receive: Herein, the consumer take the services which is provided by TUI Group for
satisfy their need and wants in order to achieve loyalty and trust of consumer.
 Post-purchase :These include those services which is provided by the TUI Group as per
their promises during the booking. It helps in retaining the customer for a longer period
of time.
P4 Explore why it is necessary for marketer to map a path to purchase and understand consumer
decision making in the tourism sector.
The main purpose of every business organisation is to satisfy the need and wants of buyer
in order to operates its business activities and functions in an appropriate manner
(Dolnicar,2016).The marketer make effective strategy in order to identify those which is
determined by the user in order to take purchasing decision. The significance of mapping a path
of buying products and services which is going to be discussed below:
 Rising ROI :It assists in analysing the attitude and behaviour of consumer towards
buying the products and services , the market make effective strategy to target the ample
of consumer in order to achieve leading position at marketplace. This helps in boosting
the overall turnover ratio and ROI by offering them modified services.
 Unified Customer Data as well as continued engagement :The mapping helps
company in collecting the effective information related to consumer purchasing decision
in systematic manner. There are different level related to taking suitable decision which is
discussed below:

Extensive Problem solving : In this stage, the consumer buy those products which are
unfamiliar for them. Therefore, it is a time consuming process because the buyer consumes time
in taking an effective decision related to buying a product or not.
Limited Problem solving: Herein, the consumer have a knowledge regarding the
products and services as well as the products which is sold by its competitive firm. For analysing
the differences, it is necessary to put additional efforts in order gain positive outcomes.
Routine Problem solving:Hereby, the consumer buy those products which fulfil the basic need
and wants of consumer. Therefore, the buyer does not need too much time and information in
taking a decision related to purchasing a products and services(Sigala, 2016).
TASK 3
P5 Compare and Contrast the main differences of the hospitality decision- making process in
reference of B2C & B2B using specific tourism examples.
It has been examined that there are two approaches B2C & B2B that helps in doing any
type of commercial dealing among the business organisation and buyer. In context of TUI
Group, the comparison among B2B and B2C which is going to be mentioned below:
Basis B2B B2C
Meaning It is considered as a process in which
products and services is sold to
different business organisation. For
example, a tourism sector recruit
talented subordinates through the
consultancy agencies(Henderson,
2016).
In this process, the products and
services are sold to its consumer in
order to satisfy their need and wants in
an effective manner. For instances, the
manager offer packages in order to
attract more and more consumer.
Customer Herein, the consumer can be a
business firm such as travel agency
offer the product and services to
another small firm which provides the
vehicle to its user in order to satisfy
the need and wants of consumer in an
appropriate manner.
Hereby, In context of Tourism
industry, the consumer are those who
uses all the services which is offered
by the business organisation. They are
considered as a final buyer of products
and services (Huang. and Lu, 2017).

Focus It is necessary to maintain good
relationship with other organisation.
For instance, a tourism industry
maintain the good relation with
various vehicle industry as well as
offer the best services according to
their need and wants.
The primal purpose of company is to
satisfy the need and wants of end use
by providing high quality products and
services to them.
P6 Evaluate the various approaches to market research and methods of research used for
understanding the decision making process.
Market research assists marketer to assess the current condition of market as well as need
and wants of buyer in order to satisfy them. Thus, the company manufactures products according
to the need and requirement of consumer (Xiang, 2018). They make effective strategy to collect
the information related to the consumer taste and preferences in order to achieve completive
benefits at marketplace. There are different method which is adopted by both B2C and B2B for
conducting marketing research in an effective manner.
Market Investigation approaches in B2B : In this approach, the marketer adopted the
secondary method for collecting the information which will be advantageous for the business
organisation. In addition to this, they collect those data and information which is already used by
any other marketer of company(Gardiner and Kwek, 2017).Beside from this, they identify all
those factors which imposes favourable and adverse impact on the maintain the relation with
other business entity. There are different sources which is adopted by the manager in order to
gather effective information which is going to be discussed below:
 Government agencies :The information which is collected through the government
agencies is effective as well as reliable. In assistance of this, such kind of agencies assists
tourism sector in decreasing the negative impact on the activities and function of the
company at marketplace.
 Publications : Through publication, the overall data and information is printed in
newspaper which is connected to tourism sector. Therefore, if there any changes occur in
respect of taste and preferences of buyer in this industry it must be published in the
newspaper.

Market Research approaches in B2C : Herein, the customer plays an important role for the
success of travel industry.Thus, the manager of company collect the fresh data and information
that contain reliability and authenticity. The method which is used for collecting information
through primary source is given below:
 Questionnaire: The manager of TUI Group adopt the questionnaire method for
collecting data and information in an effective manner. Through this method, it is very
easy for marketer to assess the need and requirement of buyer. Beside from this, It assists
in analyses all those elements which stimulate the buying behaviour of buyer.
TASK 4
P7 Evaluate hoe marketer can influence the various level of tourism decision-making process by
giving specific tourism examples.
For every business organisation, the consumer plays an important role for earning more
and more revenue(Mussalam and Tajeddini, 2016).Thus, the tourism industry analyse the need
and wants of consumer in order to satisfy them. In addition to this, the marketer focuses on offer
unique and innovative products and services for satisfying their need and wants in an effective
manner. Beside from this, how marketer take the decision related to the consumer buying
behaviour there are several examples which is going to be mentioned below:
The marketer of tourism sector emphasised on offer unique and specific products and
services to its user in order to satisfy them. Beside from this, the marketer make effective
services so that they offer superior quality services to its user based on the need and wants of
buyer. For example, if the members of family want to go for a trip then the tourism company
offer good package based on their needs as well as alteration made in the package for satisfying
their need and wants in an effective manner. It helps the company in increase future success as
well as profitability level. Also, it increase the loyalty and trust of customer towards the services
which is given by tourism industry(Liang and Yang, 2018).
The customer reviews imposes direct impact on the success and growth of tourism
industry. For instances, the top management of TUI Group take reviews form their user and alter
their services according to their need and wants. It imposes direct impact on the behaviour of
consumer in favourable manner. Also, it attract the large number of customer that helps in
boosting the future sales as well as profitability level in order to gain competitive benefits over
rival firm.

Thus, it has been analysed that, it is necessary to determine several element which
stimulate the attitude and behaviour of its user in both favourable and adverse manner.
CONCLUSION
From the above mentioned topics, it has been analysed that it is necessary to assess the
behaviour of consumer . This reports discuss about how family, friends as well as society
imposes direct impact on the buying behaviour of consumer. Moreover, it is necessary for
marketer to maintain effective strategies in order to assess the market trends and lifestyle. It
helps the company in satisfying the changing need and wants of consumer in an effective
manner. Beside form this, the marketer adopt advanced technology in order to resolve the issue
and problems which is faced by the consumer at marketplace.
REFERENCES
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demand and insight based on web search traffic information. Journal of Intelligence and
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