Customers Selection of Leisure Hotels - Coursework Example

CUSTOMER’S SELECTION OF LEISURE HOTELS By (Name) The Name of the class: Professor: The Name of the School: The Date: Customers’ Selection of Leisure Hotels Introduction The hospitality industry continues to experience a very high and increased competition in the global economic sector. Many hotels are being established in various places to boost the business environment. The hotel industry remains to be volatile and experiences a fluctuation every year. The curiosity to know about various hotels has been a human nature. Before a customer travels to a leisure hotel destination, he or she must consider certain factors of operations that will prompt him to seek the services of a particular hotel. Despite all these, within the few past years, the tourism and tourism industry have undergone increased diversity and an alarming growth. Based on this, it has become the fastest growing economic sector in the entire global world. Customers have different attitudes, beliefs, and values as they consider their leisure hotel destinations. Thus, the evolving marketplace of the travel and tourism industry must take into consideration the importance of various factors that affect the selection of the choice of leisure hotels for destinations. This paper seeks to find out the various factors that are considered by customers in the selection of the best leisure hotels in their holiday destinations. Brief Background Customers consider various factors because of the ever-increasing market complexities and the changing hotel products in the tourism sector. Internal factors like the attributes of a hotel are important factors that are useful for the sustenance and maintenance of a particular hotel. There are various hotel attributes that are considered by customers. Some of these attributes are facilities, services, location price, traveling distance and associated cost, cleanliness or hygiene among many others (Puri & Chand, 2009). The above must be taken into consideration by the hotel operators for a better understanding of the hotel selection behavior of customers. The hotel operators and entire tourism industry should be aware of prospects that are responsible for enhancing the growth of hotels and the tourism industry at large (Harris, 2013). This will enable them in developing strategies that will enhance the satisfaction of customers within various hotels of their choice. The highly competitive marketing industry forces hotel operators to understand their customers and their decision-making process as they intend to gain a competitive advantage (Callan, 2008). The hotels that have a good vision of the needs of consumers have the ability to progress and survive in their business (Carev, 2008). For a successful hotel business, it is essential for there to be a deeper understanding of the needs of consumers as they make their decisions (Puri & Chand, 2009). Also, it is significant for hotel companies to have an insight into the characteristics attributed to consumers. This enables them to understand better the attitudes, values, and motivations of their clients as they choose the best hotel destination for their holidays (Callan, 2008). The how, why and the motives of customers as they choose their favorite hotels remain the concerns of the marketing managers of leisure hotels. Literature Review In the recent studies carried on the hospitality industry, various researchers have used products attributes in trying to predict the preferences and segmentation of markets by consumers as they select their choices of hotels (Rhee & Yang, 2015). Motivational and emotional elements have been used to predict the behavior, intentions and decision-making process of various consumers (Puri & Chand, 2009). It has been realized that the choices made by customers are widely based on the motivation or product attributes of the hospitality industry (Rhee & Yang, 2015). The choice or decisions made by clients has also been based on socio-demographic characteristics and the geographic patterns (Callan, 2008). Other factors that contribute to the selection of a particular hotel include the activities, psychographic factors, values among others (Puri & Chand, 2009). The behavior and decision-making process of consumers has been largely explained by the theories and techniques of social sciences. The hotel choice behavior includes the process of decision-making (Carev, 2008). The decision-making process entails some separate stages but is interlinked with each other. The past research has done investigations on the most important criteria or choices used in the selection of hotels by consumers (Puri & Chand, 2009). The general amenities form the most basic criterion used in the selection of the best hotel industry for leisure activities. Secondly, the location of a hotel is an essential factor considered by consumers in consideration of the hotels suitable for the holidays' leisure activities (Carev, 2008). It strongly influences the decision-making process of consumers (Callan, 2008). Other important attributes that influence the leisure travelers' hotel choices are personal interactions, security, room rates and the branding of the hotels. Branding greatly influences the decision-making process of consumers (Rhee & Yang, 2015). There are a variety of attributes and factors considered by customers when selecting the best leisure hotel. The decision-making process of customers in choosing the best hotel is done under the influence of factors that are related to the characteristics of products of a hotel, personal preferences and the received information about a particular hotel (Rhee & Yang, 2015). Hotel Attributes The services and facilities that are found in a hotel make the hotel industry to be homogenous and highly competitive. The availability of the services is the determinant of the purchase behavior of various customers (Rhee & Yang, 2015). For a successful competitive business, hotel managers must understand the perception of customers towards the products and services. A client that perceives one attribute as being significant has a belief that it plays a significant role in influencing the selection of a service or a product of a particular hotel (Puri & Chand, 2009). Through the identification of important attributes of a hotel, hoteliers are advantaged to establish the strategies that meet the standards or expectations of customers (Brown & Churchill, 2014). Hotel attributes refer to the services or products offered by any hotel. The customer selection process is determined by these attributes (products and services) of a hotel (Callan, 2008). Determinants of Hotel Attributes Significant hotel attributes have been determined within the past studies. One of the most significant considerations of customers is the cleanliness of a hotel. This is followed by factors such as the pricing, security and the nature of services offered. Some travelers have focused on factors such as physical attractiveness, personal services, appealing images and opportunities for relaxation. A study of Singapore hotel on one hundred and ninety-four guests reveals that attributes used in the selection of hotels vary depending on the market segments (Callan, 2008). The guests interviewed also gave some of their factors considered in the decision-making process in the selection of a hotel. They are the attitude of employees, the condition of rooms, location, quality of services, technology, extra amenities, health sensitivity, and parking space (Rhee & Yang, 2015). Leisure travelers chose amenities as the main factors used in selecting a hotel. According to the literature review, there are four main significant factors that are considered by consumers in selecting the best hotels to spend their holidays. These factors are the location of the hotel, services of the hotel, cleanliness and the facilities available in the chosen hotel (Carev, 2008). Customer's Selection based on the influence of various factors The prediction of customer's choice of hotel is influenced by various factors. These factors are composed of many dimensions that have a link with the hotel attributes such as personal characteristics, marketing activities and the products and services of the hotel (Callan, 2008). The products of a hotel are viewed as bundles that are associated with various attributes that in turn has a direct influence on the choices to be made by customers. The elements that are considered by customers in the selection process give a reflection of the competitive advantage that is experienced by a particular hotel. Among the elements that create a competitive advantage of hotels include product, location, price, reputation, quality, product services and offers among others (Carev, 2008). Customers have a different perception of the elements of a hotel (Ahmed, 2011). Various marketing activities and strategies are conducted by the understanding of customer's perception towards the attributes. This is because different attributes are associated with varied nature. There are also other types of variables that influence the decision-making process of customers (Ahmed, 2011). Some of these dimensions are the socio-demographics of clients, geographical factors, motivation, behavioral and other characteristics (Callan, 2008). For example, the socio-demographic factors include age, education, lifestyle, personality, and others. Despite all these, marketers and hotel managers have the power to influence the decisions made by customers in the selection of the hotels they would want to spend their holidays' destinations (Ivanova, Ivanov & Magnini, 2016). The hotel marketing communication also enables customers in their decision-making process. The factors that influence the selection of a hotel are many. These factors determine the competitive advantage of a given hotel (Morris, Cournoyer & Marshall, 2008). They are location, personal experiences, price, adverting, location, hotel facilities and much more. Regarding location, customers seek to find a good leisure hotel in an environment that is wonderfully conserved. The location of the hotel should be easily accessible for customers (Callan, 2008). The location of the hotel should be in an environment that has availability of water and electricity. Secondly, the facilities of the hotel are a basic factor considered by customers (Ahmed, 2011). Hotels should have adequate facilities that are accommodative. For example, if customers are seeking for leisure hotels, then the hotels should provide all the facilities that are used for the leisure activity. With improved facilities, the quality of services offered also undergoes growth. Consumers are interested in knowing the cleanliness or the hygiene of the hotel (Markovic & Raspor, 2010). Hotels should remain clean so as not to attract certain health hazards and illnesses in our bodies. Customers prefer to live in healthier environments (Ahmed, 2011). The price of the products is another important factor worth being considered by customers. The price of the services and products should be relatively fair so that they accommodate customers that come from different socio-economic backgrounds. The way by which customers select the leisure hotels is greatly influenced by social, personal, cultural, and psychological factors. However, the psychological factors such as motivations, perception, beliefs, learning and attitudes form the main focus of the study. Psychological Factors The four main psychological factors that influence the manner of selection of leisure hotels by customers include motivation, learning ability, perception, beliefs, and attitude. To begin, a motivation refers to need that occurs to a certain level of intensity. Everyone does something under the influence of some factors of motivation. People make choices of the best hotels on the basis of what motivates them towards a particular hotel. The main concern becomes what will enable them to achieve their personal needs in that particular hotel. Therefore, a customer makes a decision about which hotel to go to regarding his or her underlying needs which are personal factors. The second psychological factor is the perception of various customers about the products and services of a hotel (Callan, 2008). Two different customers may have the same motivational needs and are set within the same circumstances but may select different hotels depending on how they perceive the setting of a particular hotel. The varied perception comes in because each person interprets and categorizes the information received in a different manner. It implies that even the marketers and the hotel managers have a great task in trying to attract customers as they choose the best hotel to seek leisure services. Our learning abilities indicate the changes in the behavior of an individual that emerges from the daily experience of a person. Most of the human behavior and reactions to various things are learned. Our future situations are shaped by from the results of our daily actions. A customer may have learned to identify the differences that exist between various products and services of a particular hotel (Callan, 2008). The other psychological factors influencing the decision of customers are beliefs and attitudes. A belief refers to a though that describes what a person has about a particular thing. The choices made by customers are at times influenced by their beliefs. Many customers make decisions regarding a hotel based on their beliefs. A particular customer may consider a hotel based on his or belief that the hotel has the best facilities that offer professional services (Ahmed, 2011). The beliefs can be based on the facts or experiences of the customer. The beliefs of a consumer may inhibit or hinder a client from selecting a particular hotel (Morris, Cournoyer & Marshall, 2008). On the other hand, attitude involves the ability of an individual to behave consistently, either positive or negative towards a given idea or an object. The attitude of a person affects the way of thinking of a customer. The behavior of customers towards a particular hotel is affected by their attitudes (Ahmed, 2011). Personal Factors Customers make decisions based on their personal factors. Some of the personal factors that influence the customer's decisions are the age and life-cycle stage, economic situation, occupation, personality, and self-concept. Age and life-cycle stage is a contributing factor. The goods and services that customers consume undergo changes. The selection of a hotel is influenced by the choices of the goods and services that meet the standards of the life cycle stage of clients. Secondly, occupation is a personal factor that also affects the way in which customers choose hotels (Callan, 2008). The nature of goods and services consumed in a leisure hotel is determined by the levels of occupation of various customers. The third personal factor is economic situation of customers (Ahmed, 2011). It is the economic situation that influences the choice of goods and services that customers will seek in a particular hotel. If the cost of finding a hotel overseas is very expensive, some customers may not make it because of the financial restrictions involved. Therefore, cost remains a significant factor in choosing the best leisure hotel for holiday destinations. People have different lifestyles despite their social and cultural backgrounds. Lifestyle goes beyond social class and personality of an individual. A customer's lifestyle may be a driving force on the best hotel that he or she chooses (Ahmed, 2011). The personality of individual customers determines their preferred goods and services in a given hotel. Social Factors The customer's decision is altered by some social factors like social roles, status, consumers groups and many others. Groups, where customers belong, give a reflection of the customer's attitudes and behavior towards the services and products of a particular hotel. The nature of our families influences the buying behavior of many consumers (Callan, 2008). Roles and status define the position of an individual in the society (Ahmed, 2011). The role of a person in society determines the type of a hotel he or she chooses to seek leisure services. Cultural Factors Culture remains one of the deepest and the widespread influences on the behavior and decision-making process of customers. Culture determines the wants of a customer (Callan, 2008). It is evaluated on the basis of the basic values, wants, perception, and the behaviors of customers. Culture is expressed in various ways. The most common one is through food and clothing. It remains an integral part of the travel and hospitality industry in determining the nature of foods consumed by customers, how they travel and where they reside. Culture is dynamic in nature and adaptive to the environment. For example, the health phenomenon based on various subcultures has resulted in hotels putting up more health related facilities. The Customer Decision-making Process With the above understanding of the factors that affect the decision-making process of customers, it is easier to look at the process of decision-making of customers. The process taken by customers to select a hotel and the criteria they in doing so remains complex and difficult to measure (Puri & Chand, 2009). The mind of customers is described as being a black box. It describes the interaction of stimuli, the characteristics of customers, the process of decision making and the customer responses. Customers are often exposed to two types of stimuli. These are the marketing stimuli and environmental stimuli. The marketing stimuli remain under the control, planning, and processing of the marketing managers. On the other hand, the environmental stimuli go beyond the marketing control. It is based on the cultural, economic and political situations that exist in society. Within the context of the black box are the characteristics of the customers. They include perceptions, motivations, attitudes, lifestyle, personality and the decision-making process (Puri & Chand, 2009). These determine the choice of selection of customers. At times, the decision-making process of consumers is influenced by their diverse culture. Culture may affect the selection of their products and services. Consumers must make best choices out of the available alternatives. If many alternatives are not provided, their selection becomes based on a particular service or product within the hotel industry. The information received from products and services of a particular hotel is very useful to customers (Carev, 2008). The information is helpful as they make their decisions regarding the best hotel. Unlike the past, today this information can be found on the internet. However, information given via oral or direct communication proves to be useful to customers as compared to the information being advertised by media channels. The decision-making process of consumers is based on their personal experiences. Customers must evaluate various alternatives based on the information received so as to make good decisions. The process of evaluation may become a challenge, for example when the product is hotel accommodation. This is because hotel accommodation is a hospitality service that is intangible in nature. The choice of hotel selection by customers is based on characteristics such as the products, services, price facilities, quality of services and products, location and many more considerations (Ahmed, 2011). In the decision-making process, consumers weigh these factors. Customers determine the attributes that have greater relevance to their personal life before they make the decision on the choice of the hotel they would want to select. Their preference must be related to their personal values, preferences and their needs. Therefore, the decision-making process of customers is complicated (Ahmed, 2011). Every customer makes his or her choices based on the needs, wants and preferences of a particular hotel. The decision made must be that would be a satisfaction of the needs of an individual customer. The customer decision-making process mainly consists of five steps. The steps are problem recognition, information search, evaluation of alternatives, purchase, and the post-purchase process. The customer must recognize his or her needs. Needs arise from various stimuli in people's lives. Secondly, a customer seeks to find the best information about a particular hospitality industry that will enable him to meet the needs already established in the previous step. After acquiring sufficient information, the customer evaluates various alternatives that meet his personal wants (Ahmed, 2011). A customer must perform a comparison of various information regarding different products in many hotels considered. The next step is the purchase decision. The customer performs an evaluation of the products and services and then ranks them based on the desirable ones. The preferred products are purchased. The post-purchase evaluation is then carried out to determine if the customer achieved satisfaction from the chosen products and services of a particular hotel. Conclusion With the expansion and complexities that continue to arise in the tourism industry, customers must consider several factors as they select the best hotels to travel overseas to their holiday destinations. It is evident that the choices made by customers are wholly dependent on individual considerations. The decision-making process of customers is influenced by various factors. The factors are grouped into broad categories, that is, cultural, social, economic, psychological, and personal factors. The hotel selection by customers is also done based on specific attributes or elements of a hotel. Some of these factors include location, quality of products and services, security, location, price, the size of rooms, hotel brand, Hotel category, cleanliness, facilities and many other hotel attributes. The customer hotel selection process is described in five steps, that is, the problem recognition, information search, evaluation of alternatives, purchase, and the post-purchase process. Customers should be very considerate on the above factor when selecting the best leisure hotels to seek services for their holiday vacation overseas. References AHMED, A. M. M. B. (2011). Customer Relationship and Satisfaction: The Jumeirah Beach Hotel Case Study. International Journal of Customer Relationship Marketing and Management (IJCRMM). 2, 19-35. BROWN, T. J., & CHURCHILL, G. A. (2014). Basic marketing research: customer insights and managerial action. Stamford, CT, USA ; Cengage Learning. CALLAN, R. J. (2008). Attributional Analysis of Customers' Hotel Selection Criteria by U.K. Grading Scheme Categories. Journal of Travel Research. 36, 20. CAREV, D. (2008). Guest satisfaction and guest loyalty study for hotel industry. M.S. Rochester Institute of Technology. HARRIS, P. (2013). 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