Impact Of Covid-19 On Tourism: Consumer Behaviour And Changes In Tourism Industry

Globalization and Tourism

In today’s integrated and interdependent world, there are multiple forces that are considered to be both opportunities as well as threats to tourism. The presence of such opportunities and threats makes it hard for the organizations involved in tourism to select the proper strategy or way that can help them achieve their goals (Croes et al. 2021). Globalization has been one of the major factors that has helped the management of the tourism companies to develop and present opportunities to the people to explore a totally new means and perspective in tourism. The influence of globalized factors includes the changes in political, economic, social, technological, legal as well as environmental aspects that are quite important for success.

The tourism economy has been heavily hit by the Coronavirus (Covid-19) pandemic over the last 2 years. Complete to partial lockdowns around the globe led to a complete decline in the tourism sector leading to a loss of consumer interest. Considering the long duration of the crisis, change in the scenarios clearly highlights the fact that potential scenarios range anything in between 60%-80% decline in the international tourism economy (Croes et al. 2021). There has been constant efforts from the part of the organizations as well as the government of the countries, the lack of proper interest from the part of the consumers have been something that has taken a serious toll on the rejuvenation of the industry. Apart from this, limited considerations on lifting travel restrictions, strict tourism regulations and absence of proper confidence has led to the serious failure of the industry.

The largest negative impact of Covid-19 pandemic on the tourism sector has been the loss of demand as well as the supply side. The loss of demand and supply on the same time has been a major issue for the organizations involved in the tourism sector. Considering the demand side, the sudden crisis in the form of Covid-19 outbreak has brought in a reduction of the disposable income of the consumers (tourists) which has directly impacted their wish to travel to different places. Such a situation has led to a decrease in their willingness to pay for tourism based activities. The sudden uncertainty has led to a standstill in the tourism sector and consumers have put their payments to the companies on a hold. Such a decision has been influenced by the fact of the high risk involving cancellation of the bookings. On the other hand, considering the supply side, the organizations have not been able to develop proper supply for the consumers. The absence of proper resources and the inability of the companies to provide the consumers the particular products and services have been problematic for the organization. The research will be addressing the consumer related phenomenon in the form of identifying the vast changes of consumer demands and needs in the tourism sector after the Covid-19 pandemic.  

Consumer Behaviour generally involves a number of different issues in obtaining, consuming and disposing of different products and services that includes the decision processes that precedes and follow the actions. Studying the behaviour of the consumers is one of the most important element of the business process and it remains as one of the most researched areas in the marketing and tourism sectors. Understanding the behaviour of the consumers in an efficient way can help the management to develop proper and effective ideas related to the development of the business in the most efficient manner. The tourism sector in this particular regards has to depend on the analysis of the consumers and their perspectives regarding tourism (Du Winkler and Axhausen 2021). Such an understanding can help the management of the institutions to develop the proper and effective products and services according to the likings of the consumers. There are a number of different reviews that are used in the identification of the consumer pattern in the tourism industry. Such reviews help understand the consumer behaviour, consumer demand and also the supply involved. For example, the review of Curry and Moutinho (1993) identifies the psychological and social factors on the travel behaviour of the individuals that is important for tourist behaviour. On the other hand conceptual model of Consumer Behaviour developed by Frias, Rodriguez, & Castaneda, 2008 determines the pre-visit factors in the formation of destination. It identifies a proposed conceptual model on the links in between concepts, influences and research elements. However, according to, de Haas Faber and Hamersma (2020) there has been a sharp change in the behavioural patterns among the consumers in the last few years because of the Covid issues. The lack of proper solutions, sudden impact of the disease made the tourism sector go off the blocks. The disturbance caused in the tourism sector made it hard to follow the standard conceptual frameworks in a proper manner.

Impact of Covid-19 on Tourism Industry

The Covid 19 pandemic has triggered an unprecedented crisis in the tourism economy across the globe. The sudden lockdowns, the detoriating health, loss of lives as well as emergency situations led to the decline in the decline in the tourism industry. Researchers has predicted the decline of 60%-80% demand from the original within the next few years. The loss of both demand and supply has provided a double blow to the industry which makes it hard to recover (Haas Faber and Hamersma 2020). There has been a radical change in the consumer behaviour and purchasing behaviour. Such a rapid change has made it hard for the management of the industries to deduce the proper and effective strategy that can be important for success in the most effective and organized process. The pandemic has provided a rise to a new and fundamental dimension of the industry which is based on health security (Croes et al. 2021). The Covid-19 disease being extremely contagious, has made the consumers quite pessimistic. The consumers are now more concerned about their health and they want special measures from the part of the management of the tourism companies to ensure success in the most professional process (Du Winkler and Axhausen 2021). Apart from the threats from the part of health, there have been threats from the part of the economic, social, cultural and environmental perspectives. Changes in the behaviour of the clients in such a manner has have a long-term effect on the tourism corporations. These major factors provides a hard challenge to each and every of the tourism corporations across the globe.

Different forms of research by the travel based organizations have found out that there has a shift in the travel perspective of the consumers post the Covid-19 crisis. The travel intentions of the majority of the public have shifted from international destinations to mostly domestic destinations. The main idea behind such a change has been the feeling amongst the consumers that domestic travel is much safer than international travel on and after the Covid-19 pandemic. According to, Li et al. (2020) the main reasons behind such a thinking have been the fact that in case of domestic travel people can have the option to safely return home using different travel options, whereas in case of international travel there may be different restrictions or issues that can be problematic for the consumers. Psychological risk can also be an important factor that generally affects the attitudes and intentions of consumers in the tourism industry. There were a large number of cancellations and delays just after the spread of the Covid 19 which has made people sceptical about different kinds of travel. The shocking change that has been discovered over the time has been the fact that people are mostly favouring travelling somewhere nearby and limiting them to the boundaries of hotels and resorts. Such an alarming trend can surely take a hug toll in the tourism economy across the globe. Travel limitations and behaviour are showing signs of different issues within the tourism industry. Such issues has changed the minds of the people and people are more concerned over the hygiene and cleanliness in hotels. Such a process can have its impact upon the business process in terms of effective safety, attitude, belief and economic expenditure, and that it negatively affects the consumption process in the global tourism industry (Du Winkler and Axhausen 2021).

Consumer Behaviour in Tourism Industry

Another major discovery regarding the changes of consumer demands in the tourism industry has been the preference of the people towards rural tourism. It has been observed by a large number of business organizations in the tourism industry have discovered the fact on rural tourism as the perception of people has clearly developed regarding the same (Haas Faber and Hamersma 2020). There has been the development of a common perception among a large majority of the consumers that rural tourism is a safe option as it involves peace and offers a serene environment. Another major discovery, has been the fact that consumer will be preferring the forms of tourism that has less inter-human contact which will especially involve the natural environment. This can mainly be rural tourism, adventure sports tourism and many more as such. Apart from this, there will also be a major change in the booking patterns of the consumers (Hasan Islam and Bodrud-Doza 2021). A shift from the traditional booking type will be observed as customers will purchase their trips through different forms of online booking platforms. According to, Li et al. (2020) the main reason behind such a process will be the lack of trust and confidence over the small travel agencies. The research will thus involve the development of a clear and effective idea on all the above mentioned factors helping readers to gain valuable insights on consumer phenomenon and changes in consumer patterns after the Covid-19 crisis globally. Thus it can be said that change in customer perceptions has made it a tough process for the tourism organizations to develop the proper remedies. The companies need to change their approach totally and take steps to adjust the demand and supply part in a professional manner to restore normalcy of operations within the tourism industry.

The selection of the different research elements will be based on the development of the proper aim and objectives of the research. However, the development of the research will be based on the development of the proper and effective research questions which can provide an idea on the proper aspects on which the research will be based upon. The research questions which lies at the core of systematic investigation is important to develop the accurate research outcomes. It focuses on the research and determines the methodology and hypothesis of the study. The research questions here will thus be focused upon the determination of the different aspects of consumer phenomenon and consumer behaviour patterns on and after the Covid-19 crisis across the world. Such a process can be important for success in the most effective and organized manner. The different research questions for this particular research are as follows;

• What is meant by Consumer Behaviour and what are the different aspects related to consumer behaviour?
• What are some differences that separate traditional consumer behaviour practices and comprehensive or modern day consumer behaviour practices?
• How has Covid 19 impacted the tourism sector across the globe?
• Identify the changes in consumer behaviour and consumer pattern in the tourism sector across the globe.
• How has the demand and supply chain in the tourism industry declined over the last few years?
• What can be the possible changes that can be made to the current scenario of the consumer patterns in an effective and professional manner?

Research Methodology is one of the most important aspect of the research process. The development of the research methodology involves the selection of the particular research methods that can be important for business success in the most effective process. The organization of the research proces is important for a research. Research methodology develops an effective and professional approach that is beneficial to understand the topic of the particular study. Such a process is carried out with the use of appropriate methods. In addition to this, it also helps in predicting a particular research phenomenon with the use of the different tools of research. The methods section here provide a brief analysis of the different techniques to be used in the research and have provided the justification behind the use of each of the different methods.

Challenges for Tourism Businesses

The research here will be using the inductive research approach that can be suitable for the following research. The use of the inductive research approach is important as it provides the opportunity to identify the research question and test the validity of the research hypothesis. The inductive research approach is important for this particular research as the concept of identification of the latest patterns of consumer behaviour is something that is less explored. Such a process can thus help to develop success in the most effective and organized manner. The research using an inductive approach can help develop a strong theory which is important for success in the most professional process. On the other hand, the research will be using the descriptive design which can be beneficial for the research. The use of descriptive design in the research will help clarify the formulated hypothesis and predict the future occurrences. Prediction of the future occurrences is important to analyze the future of the tourism industry after the devastating impact of Covid-19 crisis.

The research which is based on the identification and analysis of the consumer trends and patterns in the tourism industry after the Covid-19 crisis need to develop a strategy to derive the necessary data. The development of the necessary data will involve the conduction of a survey. The survey will be based on the development of a questionnaire which is important for success. The development of a questionnaire can be beneficial for the success of the organization in a positive process. The questionnaire will be consisting of different close-ended questions that will be provided to the research participants. The responses of the questions will be collected from the participants after a given timeline. Selection of the particular research strategy can thus be beneficial to the research. The selection of the research strategy thus confirms the use of a primary research practice. The use of primary research practice can help gather the necessary research information that can be said to be important for success in the most efficient and organized manner. A total of 100 primary responses will be collected for this particular research.

The use of probability sample techniques is best suited for the research as people must have a clear idea on the development of the business process in an efficient and organized process. The use of probability sampling technique can help ensure the selection of the most suitable participants in the research. Such a process can be beneficial for success. Lastly the use of the primary research patterns can help collect qualitative data regarding the research. The collected data can be presented using tables, bar charts and graphs. Moreover, statistical analysis techniques can also be used in order to evaluate the data accurately. The use of the appropriate research methods can surely develop the best way for success in an effective manner.

Table No 1: Timeline Table

Source: (As created by the Author) 

Figure No 1: Gantt chart

Source: (As created by the Author)

References and Bibliography

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