Consumer Behaviour & Insight Report: A Tourism Analysis of TUI Travel

This report delves into the intricacies of tourism consumer behaviour, using TUI Travel as a case study. It investigates the cultural, social, personal, and psychological factors that influence consumer decisions, alongside the evolving impact of digital technology on consumer trends such as the integration of the Internet of Things, virtual reality, and wearable technology. The report maps out the stages of the consumer decision-making journey, from need recognition to post-purchase behaviour, highlighting the critical role of marketers in understanding and influencing this process. It emphasizes the importance of adapting to changing consumer preferences, leveraging technological advancements, and employing effective marketing strategies to maintain a competitive edge in the tourism sector. The analysis underscores the need for TUI Travel to continuously monitor and respond to consumer insights to enhance profitability and efficiency.

Tourism Consumer Behaviour
and Insight

INTRODUCTION
Tourism indicates to roving which is the temporary and diminutive time motility of people
to limit exterior the places where they generally survive and employment customer performance
generally refers to the examination of how people, customer, units or companies select, buy, use
and discard ideas, products and service to satisfy their needs and necessities (Gibson and
O’Rawe, 2018). Tourism performance states to the manner in which tourists behave according to
their attribute before, during and after roving. This written document is supported to TUI Travel
that is a British company and providing different travel and tourism facilities to its customer.
This company was incorporated in 2007 by the merger of First Choice Holidays Plc and the
Tourism Division OF TUI AG. This organisation runs its business in 180 countries all over the
world and declaration 30 million consumers. There employ 54000 individuals who are building
their input in executing processes and actions and operating its business in efficacious manner.
This report will covers information about the apparatus that affect tourism consumer behaviour,
capability map a path to purchase, in tourism respect and reliable terms of investigation to know
impacts over customer determination devising activity. Moreover, the information will be
explain of different phase of the tourism purchaser pronouncement making action.
TASK 1
P1.Investigate the different cultural, social, personal and psychological components that affect
consumer behaviour
There are several cultural, communal, personal and psychosomatic factors that generate
influence upon customer performance and positions. The description of these components in
detailed manner is defined as under:
Culture- Customers behaviour is affected by different essentials such as buyer civilization,
subculture and communal class. Cultural components impact persons as there are several people
and they belong from diverse faith, beliefs and values etc. For instant, if TUI provides its
facilities to those persons who execute tour to religious location then they buy its facilities and
commodities, if it includes that type of destinations and locality in its tour packages (Moutinho
and Vargas-Sanchez, 2018). These kinds of people make determination for buying anything by
involving their civilization, belief, values and morals.
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Social class- It is another component that influence customer performance. As per it, the
performance of clients can not be determined on the basis of the profits but there are various
other factors such as occupation, wealth and education (Jackson, 2019). In respective company,
they can buy commodities and facilities of it accordant to their life criterion.
Social factors- Human beings are considered as communal creature so they and their
performance mainly inclined by these kinds of features. Reference groups, family, roles and
status are some communal components that highly impacted customer behaviour in diverse
ways.
Reference group- This element includes family, friend, staff members and famous
individual that are highly affected by these factors. For instant, a person who take the facilities of
TUI and establish about the efficiency and sufficiency of them to friends and family members.
Then it influences the buying behaviour of them.
Personal factor- It includes lifestyle, occupation, age, personality, economic condition and other
self commencement. These mentioned all factors affect the behaviour of a people.
Occupation and income- It is one of the main component that is highly affect customer
behaviour. For instant, an person is performed as a waiter and journey to the localised location of
the country cause of lack of monetary value and pay. But now performing as an administrator, a
person visit different locations of foreign.
Psychological factors- This factor consist different factors like motivation, perception, learning
beliefs and attitudes are some psychosomatic elements that highly influence surcharging power
and customer determination devising of people.
Perception- It is the major component that affects consumer behaviour. For instant, if
individual determine that TUI provide efficacious service and tour packages at relevant value in
compare to other then they can utilise the services that are offered by the firm. while the insight
is not fine and believe that the monetary value of tour packages is elevated then they can change
to another firm.
P2.How consumer trends are changing due to impact of digital technology
There are diverse digital technology which accepted by tourism sector and they generate a
different contact on consume few changes in present consumer trends given below.
Integration of internet of things- In current era, internet cooperate a important function in tour
industry to influence the consumer behaviour for example (Held, 2018). With the help of social
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media, TUI provides the lots of information about product and service to capture lots of audience
on global level. They provide all positive information to his customer that help in their buying
behaviour. It will help to company to get new client and in raise the size of organization. It can
determine also in local market how social media impact on customer buying behaviour. Social
media platform are Facebook, Instagram, Google adds, Twitter etc.
Virtual reality- It is also a technology to change the consumer behaviour in travel and tourism
sector this technology used on vital level. TUI use this technique to influence their customer with
help of provide latest location photos videos and services about their tour and packages before
any booking or purchase (Prebensen, Chen and Uysal, 2018). It can influence the customer easily
because with the help of this technology customer can see all details in virtual form that help in
decision making. Customer can easily read the term and condition and all the offers. If customer
feel satisfy with the information like photo location rates and all then he can purchase the
package otherwise he will go for another tour which is according to him.
Wearable technology– This is also a more effective technique which is used to make new
customer. In TUI, this technique is effective because it provide some wearable device at time of
buying like scanner code, QR codes which help customer to get more accurate information about
all products of company. In present era it’s too difficult to get time so it can help to make their
travel easy and safe.
TASK 2
P3.The stages of the consumer decision making journey and map a path to the purchasing
Consumer behaviour is a process and decision making activity of an individual to buy
goods and services of a firm with the motive of offering fulfilment to its desires. Customer
purchasing power is also recognized as purchasing determination devising activity of target
audiences. It includes five stages, they are determined as under:
Need recognition- it is the frits and foremost stage in which the person is identify needs by
considering requirement and recognising desires towards a specific commodity and service, For
instant, in reference to TUI, the person will identify the demand regarding to buy tour package
that they have requirement of it or not (Kastenholz, Eusébio and Carneiro, 2018).
Information search- It is the second phase, in which after identification of the need
people find information and gather data in term of fulfilling their need. For this, they make
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communication with friends, family, subordinates to get data. In context of TUI, the
administration of the corporation design and frame attractive advertisement that offer accurate
and detailed information to customers regarding the services that is offered by respective firm. It
will assist the people to form their searches regarding location as per their needs and demands.
Evaluation of alternatives- In this phase, consumer measure efficiency and ineffectiveness of
service and from comparison among the cost and quality of goods and services between diverse
organisations (Altinay and Taheri, 2019). For instant, if the target audiences demonstrate their
interest in TUI facilities then they look for data about the prices of tour packages, time, day of
tour, destination, lodgings and transportation etc.
Purchase decision- After collecting data about products and service, the individual finaly
take the decision of purchasing a particular service and good that is able to fulfil the needs and
wants. In context of TUI, after knowing about tour package, time and day of tour and destination
etc, people ready to buy holiday package so that needs and demands can be satisfied through it in
effective manner.
Post purchase behaviour- This is the last stage which can be basically considered as
feedback and response. In it after using and taking the benefits of the goods and service, people
analysed the effectiveness of the product and service. In TUI, if the tour package is effective to
fulfil customers need then they will repurchase it and if it is not provide expected fulfilment this
procedure of determination devising resume for its first phase.
These all phases of customer pronouncement making activity hold respective firm to
determine customer’s insight and their requirements so that they can improve and design services
as per need. It will effective to company as it helps in acquisition rivalry benefits from
marketplace and maximising profitableness and efficiency of the company.
P4.Why it is crucial for marketers to map a path to purchase and understand consumer decision
making
In exiting time, there is high extent of competition in marketplace that is highly influenced
through consumer decision making regarding organisation. customer performance is variable in
character so needs, tastes and preference of peoples are changed as per the trends and
demographic factors (Çakar, 2018). For instant, in that business sector in which TUI operate,
there are higher level of rivalry that influence the profit and productivity of the firm in negative
way. So the administration of TUI should decide marketplace situation in reference to decrease
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the confronts to accomplish the excellent place in the marketplace. Some of causes are defined as
under:
Influence of market mix- It is an intrinsic purpose that offer its support to each
administration that construct a strapping place in rivalry marketplace to anxiety with offering
right goods at right place (Xiang, 2018). For example, in TUI, if the management of the firm will
be capable to determine the advertising mix like manufactured goods, place, cost, endorsement
then it influence productivity and profit of the firm negatively. So it is essential to monitor the
needs and demands of the marketplace in phrase of consumer’s taste, cost and position to
produce facilities in more appropriate way.
Influence of technology- technological improvement and changes plays in effective
function in developing profit and revenue of the firm. In TUI, if the corporation accept new
innovative techniques in its business the firm can operate its business in more productive
manner. By using effective publicity channels like social media, web aids etc help in offering
effective information and increasing customer base of the company.
In accumulation to it, there are diverse conceptions and approaches that are beneficial to
provide guidences to marketers to accomplish their goals and objectives. Some of the are
explained as below:
Economic view model
In it, customer tries to evaluate different brand value and select the best for which they can
effectively offer and determine amazing gratification extent. So, marketer can assure that their
process of goods should be affordable to expense market.
Passive view- It apprehension with publicity of acts and process that help the firm to develop
it productivity. In TUI, the management of the administration can from creation in its
promotional tools that assist the firm in earning competitive benefits from market.
Emotional view- In TUI, the marketer obtain an inventiveness to determine and appreciate the
sentiments of consumer that enable in building endorsement over target audience’s mental
situation to accomplish the aims and objectives (Lalicic and Weismayer, 2018).
Cognitive view- In respective company, the administration of the enterprise can gather data
about needs and demand of people so that they can provide commodities by improving effective
plan of action as per them.
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Mapping a path of buying behaviour of consumer regarding tourism sector is necessary to
the marketers as if they frame acway then they efficiently familiar with customer’s wants and
anxiety. For this, management of TUI can use customer journey mapping approach which consist
different phases and the description of it is as below:
Inquiry- It refers to the activity when a person starts to find out and search data regarding a
manufactured goods and forces, either openly or with the help of third party that can be
advertisement, social media and word of mouth etc. (Benckendorff, Xiang and Sheldon, 2019).
Comparison- In this phase, the individual expands a significant sum of manage and makes
comparison with certain commodities and forces with others to make sure that they get what they
want. They make assessment in term of price, quality, characters and ability of fulfilment of
wants or desires.
Purchase- When the person chooses the good after comparing then they prepared to buy it
so that they can satisfy their desires and needs. When a prospect becomes consume, activating
the facility division to start with intellection or chase up forces.
Installation- It is the final stage that is section of two the acquire phases, where a facility or
good needs to be actually realized. It is imperative to keeping target audiences till extended
phrase duration.
It is organising by the administration of the firm to offer effective data of all extents in a
business function, from a sales reo who needs t identify the appropriate routes to make
interaction with consumer to administrators glance for nearby on which stores individuals utilise
most (Higham, 2018).
TASK 3
P5.Compare and contrast the key differences of the hospitality decision making process in
context of B2B and B2C
Particulars B2B B2C
Purchasing Decision Under B2B segment
purchasing decision are
taken basis thorough
analysis about the product,
its pricing, available
Under B2C segment it’s
more of individual centric
who is the final consumer
and decision making is not
so complex as compare to
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suppliers, substitutes of the
product etc. in relevant
sector. To gather appropriate
information regarding the
above factors is critical to
enhance overall performance
(Gibson and O’Rawe, 2018).
B2B segment. Volume of
business is also less as
compare to B2B segment
customer. Hence decision-
making process is less time
taking.
Finding Out Needs In B2B segment to identify
the needs of customer is
more complex due to which
a macro level market
research / trend analysis is
critical factor to be analyzed
to find out the segment
customer needs.
In B2C company designs the
product features and try to
sell the product to target
customer segment through
various marketing and
promotional activities
whereas company highlights
the features and benefits to
the consumers to get
maximum sales conversion.
Decision related to Market
Size
Though the analysis is
majorly depending on the
final consumer regarding
market size but in B2B
segment market size
analysis is done basis the
macro analysis of number of
vendors available in the
target market, volume of
their business, in-depth
analysis of the tourism at
various destination.
In B2C segment TUI
segmented its major market
size based on various factors
of final consumers which
includes income, age,
occupation, lifestyle etc. It
helps TUI to attend
customer needs in effective
manner resulting into high
sales volume (Moutinho and
Vargas-Sanchez, 2018).
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The above mentioned structural differences between both the segments help TUI an in-
depth understanding to approach the various target customers. Applying the above strategies will
fetch good business volume for the company as well as increased business profits. This will also
help for the company to design better product offerings to various customers helps TUI to
increase a strong brand and more create loyal customer segment.
P6. The different approaches to market research and methods of research
To continue and endure within present marketplace till extended time, investigation play
an significant division to donate a corporation to uncover out the inclinations and wants of
customer as well as manufacturing in order to impressive course of exploit (Jackson, 2019).TUI
inside over both type of business as B2B and B2C marketplace investigation which is definite as
follow:
Market research approach in B2C- With it, marketers mainly centring on basic information
compilation system which help them to offer clean and first-hand data which help in reducing
bias and complexities. Some techniques of this basis are as following:
Personal interview- In this, Investigator directly meet to the consumers face to face so that
they can reach actually depend of the product as per consumer which can help the producer to
provide appropriate product.
Questionnaire-It is the research in which researchers have collection of questions report
which they can ask to consumers to meet the actual product and it also help in the research as
well as the value of organisation
Market researcher approach in B2B- In this researcher collect the data through available
source like internet, websites, newspaper, magazines etc. This information can used by
researcher in the future. There are some methods of it as follows:
Government and non-government agencies-In this, TUI handle the data of national agencies or
non-government agencies process and process to keep the image of brand of organisation in the
market (Held, 2018).
Public records-In this, TUI can view the old data of the organisation regarding trading with
consumers and market to attain their aim effectively
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TASK 4
P7. How markets can influence the different stages of tourism decision making process
B2B and B2C are two type of key pillars of marketing which can help in making the profit
margin good and high productivity by the purchasing behavior and decision making method. In
business, the main role played by marketers as they supposed as the key pillar because they
provide business through divergent advantages (Prebensen, Chen and Uysal, 2018)
. These are only main factors for the business of firm which helps in producing revenue.B2B and
B2C are also effective by following methods used by marketers:
Market campaign- Customers can get the information about a particular product with the
help of advertisement and by peoples who promote them. Due to this markets also focused over
the promotions as well as the services by which they can provide information about products and
spread awareness in the customers regarding products. It helps in the profitability and
productivity for firm as customers get attracted towards the products.
Perception- Its shows that how an individual gets the things and thought about them. In
TUI, perceptions also an important factor in influencing the customers power of purchasing. The
main focus of the marketers is to make a perfect image of a particular product and its services in
the mind of consumers. So that the customers get attracted over there and provides their
satisfaction as well as need towards product by purchasing them.
Examples- Some examples are giving in forms of B2B and B2C trade, For now,TUI
working in travels and tourism business. It provides travelling facilities in it vacations and tour
package but when other ventures like restaurants and transport provides accommodation as well
as food to the traveler in their business plan. Then it is called as B2B commerce which is
controlled through business to business (Kastenholz, Eusébio and Carneiro, 2018). In B2C, for
now, suppose a company can provides it services regarding information with help of social
media to their focused customers then it is called B2C or Business to Customer business.
Consumer decision making
It is an activity by which the client chooses the mainly suitable manufactured goods out
the different options. The customer assessment making activity includes of a sequence of phases
that a purchaser goes through in context of resolve a difficulty or satisfies a want. They are as:
Need recognition- A buy procedure starts with a want a difficulty or a purpose within a
customer’s mentality. Any internal and outside incentive may constrain a custom to consider that
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the person requires something and encourages individual to seem for somewhat that will fulfil
the individual demand or solve his complexities. By providing new and creative travel around
and tour packages by utilising reasonable cost plans, the marketers can create deduction in this
stage. By conducting market research and market analysis, a marketer influence consumer needs
and demands.
Information search- When a difficulty obtains sensitive concentration from a purchaser, the
individual happen to more amenable about in sequence that may resolve the issues and starts
collecting information about services that will fulfil this demand. By offering information about
tour packages by using different channels like social media and company websites as well as
mobile application, marketers can create impact over this phase. By using effective tools and
techniques or marketing like TV, radio, news paper and many more, the marketer can influence
this phase searching information about a particular isuse.
Evaluation of alternatives- After gathering information from different sources, consumer
measures the advantages and merits of different services and improves a set of choices towards
the goods attributes, brand many more. By offering benefits and brief information about tourism
services like accommodation, food, transportation and many more marketers can get attention of
customers and influences this stage of decision making. It will help in offering information about
facilities of firm so that target audiences can make an effective evaluation regarding services and
facilities.
Selection and trial- After maintaining a set of options in mind the consumer makes the first
manufactured goods test The customer purchase diverse goods in small quantities or actually
utilise goods for some time to form an estimation and expand an approach regarding commodity
and service. By determining the needs of target audiences, marketers can offer services as per
them which help in choosing effective tourism services. In this manner they can influence this
phase of determination devising. Within this trail phase, the marketers can provide benefits of
products and services to consumer in term of make their selection process easy.
Purchase decision- When the consumer thinks that offered service and product is able to
fulfil need and resolve issue, then individual actually purchase. By using effective pricing
strategies like discount pricing, competitive and other pricing strategies they can influence
consumer’s purchase decision in positive manner. As customers also more conscious about price
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