Consumer Behaviour Assignment: Management Of Aloft Hotel

Question

Task:
Individually, you are required to write a 1500 word strategic report on consumer behaviour assignment for the executive leadership team in which you are to assume the role of a service experience manager who is in charge of a tourism and hospitality organisation.

Answer

Executive summary
The present study has focused on the management of the service-based industry. Critical analysis regarding the present consumer behaviour and service experiences has been given to understand the Trends of current customer attitude and service experiences related to transformational economy shift. Both the macro and micro factors have been discussed briefly, which are affecting the tourism and hospitality industry. A conceptual model also has been provided, which is mainly followed by the industry. Finally, some recommendations have been considered, implementing which, the Aloft hotel, a part of the hospitality industry and also the tourism industry can become more profitable.

Introduction
Management is a vast field of study. It includes so many sectors within it. Tourism and hospitality management is one of them. It's not an easy job as well. The managers of different departments of this industry have to manage so many things to satisfy their valuable customers and stay ahead from others in the relevant field. Besides the managers, the HR team also plays a vital role in the growth of this sector. The HR department is generally found to observe all the external as well as internal factors and then come out with some strategic ideas to improve their products and services.

As opined by Hopkinson et al., (2018, p. 71), with the evolution of every industry across the whole world, the service-based industries are also evolving every day. Among all the sectors within the service-based industry, the tourism and hospitality industry is growing rapidly in a noticeable manner. The present report has reflected the service-based industry, especially the tourism and hotel industry. Aloft hotel has been taken as an example of the hospitality industry to understand clearly the consumer behaviour, the quality of services offered by the industry and also the potential conflicts in macro and micro factors affecting the service-based industries well.

Critical analysis regarding the present consumer behaviour and service experiences
With the change of daily lifestyle, consumer behaviour has noticeably changed as well. It is very much important to observe consumer behaviour correctly, to prepare well-organized marketing strategies.

The marketing department of the Aloft hotel makes use of research on the consumer behaviour from time to time, to understand their needs, how much the consumers want to spend, and some other information as well. The collected data helps the organization to develop its services, even more, to serve its customers in a better way and also stay in this field in a steady position. In the tourism and hospitality industry, consumer behaviour affects magnificently, as the choice of the customers depends on it. The management team of Aloft hotel observes their guest’s behaviour to provide them with a world-class treatment so that they can gain customer loyalty and make their customers choose their business again and again. Moreover, the marketing team of the hotel organizes a survey event, through which they try to understand the psychology of consumers (Konovalova et al., 2018, 241). The management team requires to identify the reason behind their dissatisfaction first, to fulfil their desires. Hence, problem recognition is important as consumers always seek for the best products and services and that's also at a great deal. Keeping that in mind, the management team should prepare the price list of their product and services to be pocket friendly, to attract more customers towards them. Consumers are also seeking branded products. So, Aloft hotel is also now focusing on the quality of their products and also storing branded products within their hotel to serve their customers with them. The consumers are now showing their high affinity towards high tech products. Hence, keeping this in mind, and with the changing trend, the Aloft hotel has now started implementing well-developed technologies within their hotel-like automatic sliding doors and similar other stuff to attract more guests towards them.

Trends of current customer attitude and service experiences related to transformational economy shift
The difference between the expected service of the customer and the perceived service is collectively called a service quality. If the performance of the hotel cannot match up to the expectation of the customer, then dissatisfaction of customers arises, which becomes harmful for the organization. With the transformational economic shift, consumers now desire for more than just experience; they want something meaningful as well as authentic.

Customers are now seeking a space for themselves, where they can take a break from their hectic lifestyle and can spend some quality time. With the rapid change of environment and economy, the needs of customers have also changed a well. They opt for a place where they can get mental peace as well as safety (Wang et al., 2019, p.78). Thus, the management team of the Aloft hotel has changed their infrastructure and made it so calm, that their guests can find mental peace there. Their management team has also tightened their security, keeping the safety of their valuable customers in mind. Not only that, but the HR team of the hotel has also trained their employees well so that they behave with their customers with a friendly attitude and always take care of every single need of their valuable customers.

Potential conflicts in macro and micro factors affecting service based industries
There are so many factors, which affect service-based industries like the tourist and hospitality industry. These factors can be grouped into two sections: macro factors and micro factors, to understand them clearly (Sheehan et al., 2018, p.28).

Macro factors affecting the service-based industry are as followed below.

Political factor
Environmental regulation, labour regulation, trade agreement, taxations-- all of these come under the political factor. As governments of different regions collect a lump sum amount from the revenue, collected from the tourism and hospitality industry, they have introduced some schemes to attract more guests from outside. Governments are trying to help this industry to get bloomed (Andreoni and Chang, 2019, p.136). For instance, Aloft hotel has done a trade agreement with their local government and now they have to pay a comparatively low tax to the government, which is quite profitable for them.

Economic factor
The economic factor is also an important factor regulating this industry. The tourism and hospitality industry do not have any certain amount of income; it varies from time to time, and hence they have to take care of this part very seriously. The management team of this industry has planned a different budget for the salary of their employees and the expenditure of the maintenance of their respective properties. Moreover, after doing thorough market research, they fixed the prices of their product and services to attract more customers for them in all seasons.

Socio-cultural factors
The socio-cultural factor includes so many sub-factors within it. Demographics also fall under this category. The racial and ethnic composition of a population, age groups, education levels and income-- all come under this section. Changes in people' lifestyles come in this category as well. For instance, the Aloft hotel has started to make their surroundings eco friendly, by implementing green energy having technologies, to attract more customers.

Figure 1: Omnichannel IMC framework
Source: (Andreoni and Chang, 2019, p.136)

The service-based industry including the tourism and hospitality industry follows the Omnichannel IMC framework. According to this model, the Aloft hotel as a part of the hospitality industry tries to keep in touch with their valuable customers non-personally via email, website, social media, and personally via the field sales force, trade shows and similar others.

Technological factors
With the advancement of science and technology, people's lifestyles are also changing. Keeping that in mind, the Aloft hotel has started collaborating with online hotel booking companies, via which people can now find them more easily, which increases their profit.

Microtrends also play a vital role, affecting the service industries.

Once is never enough
The service-based industry including the tourism and hospitality industry has now improved their products and services a lot, like improving their infrastructure, so that customers are now willing to visit the same place frequently.

Luxury experienced
Customers are now looking for luxury and trendy places to spend some quality time. Thus, the Aloft hotel has decorated their internal amenities so well that customers love to visit their hotel in their leisure time (Buhalis and Sinarta, 2019, p.563).

Leisure upgrade
People have now started focusing on quality factors. Hence, they now want to choose a place where they can refresh their mind, and Aloft hotel offers them the same.

Strategic recommendations for an executive leadership team
After observing the whole study, some of the recommendations can be given for the Aloft hotel, so that by implementing them, the hospitality industry, as well as the tourism industry, can be bloomed even further.

• Keeping in mind the situation of this global pandemic, the Aloft hotel should start the facility of online payment. The leadership team of the hotel should manage the safety policy of their customers more carefully, by giving more focus on hygiene.
• The leadership team of both the tourism and hospitality industry also should train their employees to work more efficiently and behave more gently with the customers, to provide them with a memorable experience (Nieves and Quintana, 2018, p. 73).
• The leadership team also should focus on the retention process, to hold their efficient employees within their respective organizations, to serve their customers to buy them to satisfy them.
• People are now showing more interest in eco-friendly products, and thus the leadership team should implement green energy-based technologies within their workplace, to attract more customers towards them.
• By noticing this global economic condition, the leadership team should provide more offers for people and give discounts on online hotel bookings as well, to attract more customers in this situation as well.

Conclusion
The present study has focused on the management of the service-based industry. Critical analysis regarding the present consumer behaviour and service experiences has been given to understand the Trends of current customer attitude and service experiences related to transformational economy shift. Both the macro and micro factors have been discussed briefly, which are affecting the tourism and hospitality industry. A conceptual model also has been provided, which is mainly followed by the industry. Finally, some recommendations have been considered, implementing which, the Aloft hotel, a part of the hospitality industry and also the tourism industry can become more profitable.

References
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Buhalis, D. and Sinarta, Y., 2019. Real-time co-creation and nowness service: lessons from tourism and hospitality. Journal of Travel & Tourism Marketing, 36(5), pp.563-582.

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