Understanding Consumer Behaviour in the Hospitality Industry

This report provides a comprehensive analysis of hospitality consumer behavior, focusing on the factors that influence consumer attitudes and decision-making processes within the industry. It explores psychological, cultural, and personal factors, as well as the impact of digital technology on cha...Read More

HOSPITALITY
CONSUMER BEHAVIOUR
AND INSIGHT

Table of Contents
INTRODUCTION...............................................................................................................................3
MAINBODY........................................................................................................................................3
LO1 Factors that influence the hospitality consumer behavior and attitude..................................3
Psychological factors:........................................................................................................................3
Cultural factors:.................................................................................................................................3
Personal factors:................................................................................................................................4
Impact of digital technology on changing consumer trends:..............................................................4
Critical analysis of emerging trends in consumer behavior and attitude along with examples:.........4
LO2 ABILITY TO MAP A PATH TO PURCHASE IN A HOSPITALITY CONTEXT,
INCLUDING DECISION MAKING PROCESS..............................................................................4
stages of the consumer decision making journey:..............................................................................4
Importance of mapping a path and understanding consumer decision for marketers:........................5
How marketers are responding to decision making process:.............................................................5
LO3 Appropriate forms of research to understand influences on the hospitality consumer
decision making process......................................................................................................................6
Key difference of the hospitability decision making process in the context of B2B and B2C:..........6
Market research methods use for understanding the decision-making process:.................................6
Evaluation of how different factors influence decision making and buying behaviour:.....................6
Marketer’s influence on each stage of decision-making process:......................................................7
CONCLUSION....................................................................................................................................8
REFRENCES.......................................................................................................................................8

INTRODUCTION
The report of hospitality and consumer behavior will comprehensively analyze the
hospitality industry and how the consumers under this segment behaves regarding the
services and consumption. Consumers is considered as king in every market and under the
hospitality consumer drives the trends of the market. Consumer behavior is very important
for any business as it can make or break a business, it drives the business of not a unit but
entire industry. It is vital for the businesses to undertake the effective measures to understand
the consumer behavior and decision making of consumers which can ensure success to the
business (Wood, 2020).
The report will elaborate various aspects which influences the attitude and behavior of
the consumers. Also, a path will be illustrated to describe the purchase of under the
hospitality context along with decision making process of the customers. Further various
forms of research to understand the influence om the hospitality decision making process will
be mentioned. The hospitability organization chosen is savoy which is a UK based chain of
hotels operating globally. It was founded in 1889 and has currently Fairmont as chain of
hotels under it. The organization as gained year of experience in hospitality d providing
customer quality services has been a top priority for the company (George, 2021).
MAINBODY
LO1 Factors that influence the hospitality consumer behavior and attitude
Hospitality industry in UK contributes to a large part of the economy in terms of
money and business. Yet it is not the business yet the customers which defines the patterns
and trends in the market. Consumer plays a vital role in setting the trends in the market by
making the choices which impacts the industry. It is also known as the decision-making
process of the consumers which impacts the hospitality industry (French, 2018). Consumer
behavior is basically influences by making factors such as social, physiological and cultural
etc. as choices are determined by various aspects. Let’s understand factors which depicts the
consumer behavior in the market.
Psychological factors:
Consumers behave in different way according to their thinking processes which plays vital
role in defining the choices they make. Especially when they spend money, they consider
various aspects which can impact their overall experience. Marketers must take this into
consideration that a customer’s background and thinking process is something which needs to
be understood in order to serve those customers in a customized way. physiological aspects
are the individual’s income, lifestyle and perspective they have while choosing to spend.
Cultural factors:
Culture requires to be determined as it is vital element which influences the
customers. various groups regions and cultural backgrounds of people needs to be study in
detail as it drives the purchasing behavior of the consumers in the market. As the cultural

scenarios differ from country to country and it is important to understand cultural values
prevailing in each market segment. It helps identify the opportunities of serving the
customers in the market better. E.g. if a consumer has mind set of spending less on the
accommodation then he is less likely to spend on luxury accommodations ever (Gursoy,
2019). This is how it impacts the consumer behavior.
Personal factors:
Personal factors like preferences and orientations, personal incomes, and spending
capacity of the consumers depicts how with behave in the market place. It plays significant
role in determining the trends in the market. Especially in hospitality segment customers tend
to have different choices as customers with less income prefer to choose the budget friendly
hotels which provides comfort at low prices. Whereas high income group customers loom for
luxury while choosing hotel for accommodation while travelling. It is important for the
marketers to have research conducted which segments the customers on the basis of the
preference which makes it easy for the business to customize the services.
Impact of digital technology on changing consumer trends:
Is flooded with the technological advancement and hospitality industry is facing some
major technological changes. In the competitive times the demand of the customers’ needs to
be met according to their expectations. It requires business in ten market places to have
constant update of each such advancement which can benefit the business in the market.
Customers expects atomization of the business processes which make the aspects like
booking, checking, verification, payments, checkouts fasters and convenient than it used to
be. Face recognition has been the best of all times which has made the verification process
easy (Lee and et.al., 2020). There is indulgence of AI technology which being artificial
intelligence in the hospitality field. Consumers are now driven towards the facilities which
brings them touch of modern technology hence it requires businesses to adapt the same.
Critical analysis of emerging trends in consumer behavior and attitude along with examples:
Hospitality industry has recently seen many changing trends in the business conduct.
Unlike old times people now look for more exposures. People even from the lower income
background avails the luxury services and expects the hotel chain to offer the services at
affordable prices. Which requires the business to serve in terms of customization of services.
It has been the greatest trend nowadays. As luxury at affordable prices has been a game
changes in the industry. Savoy is one of the most luxurious 5-star hotel having business
operations in multiple location and they are also adapting the customization of services in the
business in order to increase the customer base in long run. Not being accessible is not the
luxury anymore. Hence these kind of changes plays vital role in the consumer behaviors
change.
LO2 ABILITY TO MAP A PATH TO PURCHASE IN A HOSPITALITY CONTEXT,
INCLUDING DECISION MAKING PROCESS
stages of the consumer decision making journey:
there are basically 5 stages a consumer goes thorough in his journey to make the
purchase. These stages are as follows problem recognition, information search, evaluation of
alternatives, purchase decision and post purchase behavior. These stages play vital role for

the business. It depicts the likelihood of decision making of the consumers and what aspects
matters the most. Initial stage of problem recognition is associated with feeling or perceiving
the need for the services, it is where customers start coming in touch with the hospitability
sectors. Next is information search in terms of seeing value as they determine what exactly
they are looking for and in market what is the available option (Ahmad and Scott, 2019).
Further, it is evaluation of the alternatives when customers assess the value of the alternatives
and how each can serve them, better than others and what is meeting their expectations.
At last consumer makes decision to purchase after analyzing in deep each available
option in the market. Further there is post purchase behaviour which includes customer
experience in terms of feedback, using services again, referring services to others etc. this
sums up the entire journey of the customers in hospitability. Booking a hotel is now a days on
finger of the customers which makes customer being exposed to a lot of choices and industry
is already facing high competition this journey is a path of decision making for the customers.
In other terms this journey also depicts the business’s prevalence in the market place.
Importance of mapping a path and understanding consumer decision for marketers:
A marketer is someone who understands the business needs by identifying the
consumers’ expectations, preferences and the driving force behind making purchase
decisions. As consumers are the king in the market and it is the duty of the marketers to
identify what can make the business thrive, what can give business an edge over other
businesses in the market. Which makes mapping the path really important. As making the
path gives an insight of how an individual in the market makes decision to purchase a product
or service. It depicts the forces of what the preference and why consumers are making a
decision.
Under hospitality context there are various aspects an individual considers while
making decision to go after a hotel accommodation (Li and Ma, 2020). Those aspects are
such as budget, location, amenities, facilities, past reviews, quality of services, reputation,
brand name, type of culture and background they come from. Hence a detailed consideration
of mapping the path and understanding the decision-making process of customers is very
important for the marketers of the hotels. Savoy is known for its high-quality luxury hotels
and most of the customers associate themselves with the brand as expensive and richness
hence they choose savoy. Yet marketers have to closely map the path as in case of any
deviation they can understand the customer and make the changes accordingly.
How marketers are responding to decision making process:
savoy is large scale hotel chain which has a sense of reputation attached to it, with the
years of experience comes great responsibility to serve the customers in the best form
possible. For this marketer play significant role understanding the customer’s decision
making and responding to the changes and needs of the customers accordingly. This is the
way business survives in the market with the help of marketers who closely watch the
existing customer base and look at the potential customer’s decision-making aspects. Savoy
has kept a huge data base of the customers and processing this database marketers identify
the customers’ visits and preferences.
It helps them serve the customers even better. Further time to time taking due
feedbacks which assures the satisfaction of the customers from the hotel services. Trying to
adapt the technological advancements in the business is another such aspect savoy has

mastered as feedbacks is on roc the crucial way of getting the insight of the customer’s
review (Sury and et.al., 2018). Marketers undertakes each such undersection level they get
and analyse the requirement which needs to be fulfilled which makes the business more
efficient. Responding to the decision-making process of the customers is essential for making
the business match its potential to serve the customers in a significant manner.
LO3 Appropriate forms of research to understand influences on the hospitality
consumer decision making process
Key difference of the hospitability decision making process in the context of B2B and B2C:
there is a certain level of difference in the decision-making process in B2B and B2C
dealings. As B2B is where a business is selling its products and services to another business,
and B2C is where a business is selling its product and services to its end consumer. For a
B2C market segment there are very subjective decision-making process which differs from
individual to individual. As a consumer thinks about budget, locality, safety, reputation,
brand name, conveniency and comfort etc. aspects while booking a hotel. While on the other
hand under B2B business at the receiving end of the services and product tends to feel an
scope for selling the products and service to the ends users as they see a potential market who
will consumer this service and avail these booking. Hence it is very clear that there lies a
huge difference in the decision-making process of a consumer and customer. It is important
for the business under B2B segment to foresee the demand for the hotel and in future in order
to avail the bulk booking which will deliver high profits, this can be for the cheapest hotels or
luxury ones depending on the ability of the market to respond (Gibbons and et.al., 2021).
Whereas a consumer will have different perspective and approach in making a decision of
which hotel to choose.
Market research methods use for understanding the decision-making process:
it is important for marketers to analyse the decision-making process of the customers
in the market with the help of different research methods which can bring forwards the clear
picture of the driving forces of the customer’s decision-making process. For this there are
various methods which are available e for the businesses such as taking feedbacks from thew
customers, using personal interviews as mean to take insights, using the existing customer
database which shows the trends and patterns of consumer behaviour. For savoy as it is under
the luxury segment being a 5-star hotel it needs to analyse the existing customer data base
first which brings an understanding of the likings and disliking of the customers regarding the
hotel services they get from the savoy. As taking the criticism is very crucial for reh growth
of any business and hospitality remains the fast-changing business here advancement and
rapid technologies needs to be doated which can bring the edge to the business (Gursoy,
2018). Hence choosing to take feedback and conducting market survey to know the Savoy’s
market standing will be great reaches method which can be used by the business.
Evaluation of how different factors influence decision making and buying behaviour:
hospitality industry has seen many ups and downs in Last 3 years which makes it very
important for the business to undertake the measures which can evaluate the impact and
driving forces of the decision making. Hygiene, safety has become the things which very
customer gives priority to, as covid-19 fled the market with a lot of guidelines and norms
which needed to be followed by the hotels to ensure the safety of the customers. Hence

customer made it a point in decision making to consider the utmost abidance of safety
protocols. Further the decision is also driven by the income groups as high-income group
individuals choose comfort and luxury over process. And low-income group customers seek
value for money hotels which gives them a sense of luxury or great experiences yet within the
budget. This has been a great driving force of decision making in the customers. At last, the
way rating sand reviews speak of the services of the hotel plays crucial role (Koc, 2020). As
ultimately each customer is looking for the best services which can bring comfort to them.
LO4 how marketers influence the different stages of hospitality consumer decision
making process
Marketer’s influence on each stage of decision-making process:
savoy serves across different locations in the country and it has customers from
different age group, income group, cultural segments, regions etc. it requires marketers to
bring solution to the customers in terms that they perceive savoy is they means to satisfy the
hotel accommodation needs. There are basically 5 stages and marketers can influence
customer son each such stage by portraying the best experience and services to the customers
(Limna, 2022). At the very first stage marketers can advertise the brand and its services in
such manner that it creates need in people to facilitate such services.
Savoy has the strength of luxury customer base and offering these customers
marketers identify their means to get the satisfaction from the hotel services. As retaining
these high-end customers is very important for the business. Launching the reward program
and membership is one such action taken by the marketers to enhance customer loyalty and
making the regular customers feel even more special. It is the duty of the marketers to
facilitate the solution on each stage which makes the customer choose savoy over other
hotels. This is an important way which can be used by the marketers to influence the
decision-making process of the customers. As it has the capability to enhance the business
and improve the business’s retention power of the customer (Lugosi, 2019). Many hotel
chains suffer from lack of influence on the decision making yet the powerful addressing of
the needs to the customers can have the significant impact on the business.
Marketer’s response to the decision-making process:
the way marketers respond to the decision-making process of the customers
determines the problem-solving approach of the business, as marketers recognise the areas of
shortcoming in terms of serving the customers and later, they dignify it with a solution which
can do good to the customer and business both. As it is not just the identification of the
problem yet the solution of the problem which ultimately matters. Marketers are basically the
individual who reads and study the market in detail including the customer who stay at the
centre of the market. As customer is said to be the kind and it is important to identify the
areas where business is lacking (Rawal, Soni and Durmaz, 2022).
For savoy in recent years business has seen fall in new customers being coming in
contact with the hotel, as competition is extremely high. In order to deal with these marketers,
watch closely the way consumers behave in the market place and they respond I way which
enhances the business of the hotel. At savoy currently marketers are trying to revive the brand
image which make the public feel a sense of relatability and accessibility (Pourfakhimi,
Duncan and Coetzee, 2020). As decision making of the customers is driven towards the facts
that savoy is a luxury-based hotel which serve only celebrities and high-end customers. Most

of the decisions are driven by these factors and in order to deal with this fact marketers are
coming with the advertisements and brand face change which is capable of changing the
business criteria. This will enhance the customer base and allow the business to serve the
more customer.
CONCLUSION
The above report has analyzed the hospitability industry and how consumer behavior
impact it. As consumers sets the trends of the business and it is very important for the
business to analyses the market segments especially consumer’s decision making. Report has
taken Savoy hotel and depicted how the marketers for the hotels work towards depicting and
influencing the decision-making process of the customers. A detailed mapping of the path of
decision making has been elaborated showing ways which marketers use to induce the
decision making positively. Factors which impact the decision making and consumer
behavior in the market place such as social, cultural etc. has been illustrated. Impact of
technological changes on the consumer behavior has been depicted in detail. Importance of
mapping the path for marketers to respond to the decision making, as marketers play crucial
role in identifying the response which suits the best for the decision making of the business
has been mentioned. At last ways in which marketers are respond to the customers in the
market place regarding their decision making has been illustrated.

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