Introduction
The issue of choice overload is a real concern in the hospitality industry in the modern era. The problem is informed by the broad range of options that the practitioners in the industry have. As a consequence the organizations in the hospitality industry have a difficult time making decisions due to the wide range of options they have informed from the contemporary trends. It is critical that when faced with so many choices it is extremely hard for an individual to reach a decision whether, in the hospitality industry or any other industry (Slåtten and Mehmetoglu, 2011, p. 101). The issue is particularly confusing to persons who are used too few choices in the respective fields of endeavors. This paper delves into the issue of choice overload in the hospitality industry with an aim to offer a comprehensive insight on the problem. The paper further discusses how the issue affects the professionals in the sector.
Choice Overload and Consumer Decision Making
Kivela, Inbakaran and Reece (2000, p. 23) argues that there is nothing wrong with having a wide range of choices but it may become too much to the extent that the decision-making becomes cumbersome which is costly in the long run. Sometimes choice overload is problematic as the freedom of having many choices is deemed to have the opposite effect and hence become counterproductive. Several researchers in the hospitality industry have found that when the customers are faced with multiple choices, it becomes much more difficult to reach a decision than when one experiences fewer choices (Matzler and Waiguny, 2005, p. 307). The choice overload hypothesis assumes that having many options in the hospitality industry lead to making no choice at all because the decision makers are overwhelmed by the state of affairs. Further, it has been found to lead to disappointments later due to the perception that one could have made a better decision based on the many choices that one had (Vermeulen and Seegers, 2009, p. 124). The hospitality industry has a lot of choices, but there are always questions whether the many choices of the products and services adversely affect the sales in the industry. The art of revenue management in the hospitality industry contribute to the increase of sales in a right way, with the customers and guests opting for the services as based on the perceived value.
According to Kayaman and Arasli, (2007, p. 95) the hotel management is compelled to manage revenues in various ways that were not available in the past decades. However the distribution of the ever increasing options has created confusion to the customers as they grapple with the issue of the prices and utility maximization. It is clear that the vast range of choices hurts the hotel industry by interfering with the sales. For example, stocking several flavors of the same food item is quite confusing to the customers. For instance, having more than ten flavors of jam does not even give room for the client to sample the item (Tanford, Baloglu, and Erdem, 2012, p. 73). As a result, the customers do not even purchase the item but rather overlook it and move on. Research shows that a lot of samples of the same items are confusing to the customers, which consequently hurt the sales as the customers do not purchase such products (Matzler and Waiguny, 2005, p. 308). An experiment conducted by leading experts in the hotel industry found that the more the flavors of the same item there is less the percentage of the actual purchases.
The post-purchase regret could lead to choice withdraw, which implies that the customers could avoid the products in future as there is no motivation for the same product. Studies in different products in the industry found that the clients that have a wide choice of goods have difficulty reaching a decision with the experience ending up more frustrated than consumers do with lesser choices (Louvieris, Driver, and Powell-Perry, 2003, p. 170). The consumers with wider choices are also less satisfied than the ones with many options. The studies have yielded the same results even when the customers are subjected to the choices of different products within the hospitality industry (Minghetti, 2003). The decision process in the sector is complicated by the fact that the customers in the industry are always looking for the most appropriate alternative in the market.
In the making of the travel decisions, the issue of choice overload could lead to a risk as a result of confusion informed by the many options. The problem is compounded by the fact that traveling requires much more resources and is time consuming which makes an unwise decision costly (Kivela, Inbakaran and Reece, 2000, p. 26). The issue becomes much more complicated because the tourists utilize the products and services at some far distances from their homes, implying that failure to reach the right decision could be quite risky. In situations where the tourists fail to make the right choices regarding their holidays, the experiences are followed by regrets with the experience haunting them for a long time to come.
Cantallops and Salvi, (2014, p. 44) argues that choice overload is preferred in the hospitality industry, although it does not exist in the travel and tourism related decisions. However, the assumption is not true as evidence shows that customers are unlikely to make any decision at all when they are provided with a broad range of options. The customers are keen to assess the diverse options offered in the hospitality industry, but the result is that they are overwhelmed by the choices leading to the making of the wrong choices. The issue of choice overload has been compounded by the existence of the internet where people rely on the search engines when they are making a choice of their holiday destinations. The consequence is that a click on hotel and vacation site online yields so many results that the customer ends being more confused than before. For example, a search of hotels in Sydney or New York will produce so many results that the client will have a lot of difficulties making a choice from the diverse products and the services offered (Chernev, Böckenholt, and Goodman, 2015, p. 346). For example, a search of hotels in New York alone yields more than 500 results which complicate the problem for a traveler trying to locate appropriate outlets for their stay.
It is important to note that travel efforts are connected to a lot of time consumption and the traveler is always under pressure to achieve the travel decisions within a given time limit. The aggressive sales campaigns adopted by the players in the hospitality industry contributes in making the travelers experience awkward moments in decision making as they endeavor to exploit the good deals offered in the market (Reed, et al 2011, p. 547). The customers may feel that they do not have the required time to consider all the available options, which makes them to make the wrong choices as a result of hasty decisions. Therefore, the consumers with meaningful choices will always experience the effects of choice overloads in comparisons to the customers provided with a narrower range of choices. The results of the choice overload effect have been found to be the same with earlier studies related to the hospitality industry. The results show that the choice overload effect is prominent in the hospitality industry as the consumers including the travelers make critical decisions related to the products and services in the industry. Another study found out that the issue of choice confusion informed by the existence of large sets of choices often led to regrets and dissatisfaction after the purchases (Atakora and Navare, 2014, p. 105). The implication is that the existence of the wider options makes the customers more confused in their decisions and hence are dissatisfied with their choices which lead to proportional levels of regrets.
Other studies have found that there are no notable differences between the individuals who considered themselves knowledgeable on matters of selecting the holiday destinations, when faced with small or large sets of choices (Scheibehenne, Greifeneder and Todd, 2010, p. 411). When making decisions in the midst of healthy options, all results indicate that they were less satisfied and ended up regretting their choices (Cantallops and Salvi, 2014, p. 42). Other studies suggest that the choice overload effects only affect people who consider themselves inexperienced in the selection of the products and services in the hospitality industry (Mattila, 2004, p. 452). The same studies indicate that the consumers who are experienced in the industry have no problems making choices regarding travels, selection of food items and other services in the hospitality industry.
Another study provides entirely different findings in relation with the existence of knowledge reading the making options in the industry (Karanikola, 2015, p. 16). The author explains that when the existence of knowledge is weighed it is tough because the individuals in the study have the same level of comprehension and interpretation regarding the issue. The rationale is based on the fact that the information in the hospitality industry is overly broad with different customers having different perceptions on varying issues. The results showed that the individuals who claimed to be more knowledgeable in the hospitality industry experienced more difficulties in reaching their decisions and hence experience choice overload effects such as dissatisfaction and regrets (Chen, Shang, and Kao, 2009, p. 52). Hence, increased knowledge about the available services has at times been counterproductive reducing the optimization of utility among consumers.
Most of the studies are based on the fact that the consumers in the hospitality industry make the decisions for themselves which is not always the case. There are circumstances in which people make the decisions on behalf of others. There are situations where the consultants are contracted to reach decisions on behalf of organizations or groups of people. Studies indicate that they customers who make decisions for themselves from those who make the decisions for others (Cantallops and Salvi, 2014, p. 47). In the former there is careful analysis while in the latter the decisions are made faster. The studies reveal that the decisions made by the consultants are more satisfying and lead to low levels of regrets after experiencing the services in the hospitality industry.
Impact of Choice Overload on Professionalism in the Hospitality Industry
In the professional development in the industry, there is a need for a strong analytic eye so that each situation is carefully analyzed in before making a decision in consideration of the fact the professionals makes most of the decisions on behalf of the clients (Kandampully and Suhartanto, 2000, p. 352). Understanding the category of customers is pivotal. Such an understanding cannot be achieved without the high rates of interactions with the customers to establish the exact needs of the customers. In the professional growth, the issue of choice overload could be positively exploited by the acquisition of a wide range of knowledge related to the industry which will elevate the professional standing.
The issue of choice overload has a lot of influence in the professional career as there are many areas of specialization (Townsend and Kahn, 2014, p. 998). The entire hotel industry is characterized by the provision of many choices as possible as a strategy to lure the demanding clients. The delivery of the choices is considered essential to cater for the diverse range of the customers (Matzler and Waiguny, 2005, p. 309). There is a belief in most businesses that the existence of a broad range of choices increases utility and hence it is a good development for the business. The customers prefer having as many choices as possible as it leads to making informed decisions.
Other arguments have it that the existence of many choices in the market is important caters for all customers and is responsible for the increment in the level of purchases and consumption (Eastham, Sharples and Ball, 2007, p. 21). The choice overload in the hospitality industry also enhances the consumer freedom as they make them decide on the best options available in the market. However, a lot of evidence in the industry have also indicated that choice overload has negative impacts and could reduce the amount of the sales achieved at a given time. The argument is that whenever one experiences so many choices they have difficulties in reaching a decision and hence there is a negative perception towards the available products (Kusluvan et al.2010). The existence of the vast choices contributes to dissatisfaction as well as post-purchase regrets which explains why it is not a good thing for the hospitality industry.
The choice overload is also critical to informing the practitioners in the industry about the challenges faced as they interact with the customers from diverse backgrounds. The efforts to fulfill the tastes and the preferences of all the customers imply that the professionals should be more aggressive in customer identification and segmentations (Slåtten and Mehmetoglu, 2011, p. 95). As a result, they will be able to customize the products and services according to the requirements of each client. Further, a professional understanding of the operations and the culture in the hospitality industry is essential. Such as an understanding informs the need to create products and services that responds to the needs of the people of diverse cultural backgrounds. It provides an opportunity for the professionals to customize the products and services to cater for the wide range of clients (Seng and Theng, 2015, p. 143). The issue of choice overload is an opportunity for the professionals to endeavor to acquire critical communication skills to relate well with the customers as well make efforts to understand them a and their needs.
The choice overload is a challenge and an opportunity for the professionals to be more sensitive, creative and understanding in the interactions with clients from diverse cultural and regional backgrounds. Creativity in the industry is the only way to ensure that the professionals in the sector are fully able to understand and therefore address the needs of the market (Dimitris and Vasiliki, 2013, p. 18). The service to the customers would determine how one can advance as a professional and overcome the worldwide competition in the industry. The existence of the choice overload is not a necessary negative for the hospitality industry (Cantallops and Salvi, 2014, p. 45). Rather it is to the efforts of the professionals to leverage on the state of affairs for the benefit of the clients.
Personal Reflection and Conclusion
In conclusion, choice overload entails the provision of many choices of restaurants or even different categories of food served in various hotels. The hotel industry has a wide of choices and clients have a difficult time on decision making on various factors such as rooms and other services they are seeking. The different categorization of the services implies that the client is unable to decide on the nature of services they want. The severe competition in the industry implies that all the players are out to outdo each other and hence come with all kinds of services to lure the clients. Whereas the competition is healthy and at times beneficial to customers as they bargain for the best deals, it could also be adverse as the customers are unable to make rational decisions. The hospitality industry players need to collaborate with clients to ensure an optimal choice is made to ensure client satisfaction, which a major factor in the success of a business in the modern business environment.
References
Atakora, A. and Navare, J., 2014. Impact of Bounded Rationality and Information Asymmetry on Brand Choice, Satisfaction, and Customer Switching Behavior in Financial Services. In 2nd UGBS Conference on Business and Development 2014 Conference Proceedings (p. 105).
Cantallops, A.S. and Salvi, F., 2014. New consumer behavior: A review of research on eWOM and hotels. International Journal of Hospitality Management, 36, pp.41-51.
Chen, Y.C., Shang, R.A. and Kao, C.Y., 2009. The effects of information overload on consumers’ subjective state towards buying decision in the internet shopping environment. Electronic Commerce Research and Applications, 8(1), pp.48-58.
Chernev, A., Böckenholt, U. and Goodman, J., 2015. Choice overload: A conceptual review and meta-analysis. Journal of Consumer Psychology, 25(2), pp.333-358.
Dimitris, L. and Vasiliki, K., 2013. The Effect of Virtual Communities and Social Network Sites on Tourism Destination Choice. June 27th to the 29th of 2013 Athens, Greece, p.210.
Eastham, J., Sharples, L. and Ball, S. eds., 2007. Food supply chain management. Taylor & Francis.
Kandampully, J. and Suhartanto, D., 2000. Customer loyalty in the hotel industry: the role of customer satisfaction and image. International journal of contemporary hospitality management, 12(6), pp.346-351.
Karanikola, I., 2015. Human capital investment for front-line non managerial employees in the hospitality sector in Dubai (UAE).
Kayaman, R. and Arasli, H., 2007. Customer based brand equity: evidence from the hotel industry. Managing Service Quality: An International Journal, 17(1), pp.92-109.
Kivela, J., Inbakaran, R. and Reece, J., 2000. Consumer research in the restaurant environment. Part 3: analysis, findings and conclusions. International Journal of Contemporary Hospitality Management, 12(1), pp.13-30.
Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010. The human dimension a review of human resources management issues in the tourism and hospitality industry. Cornell Hospitality Quarterly, 51(2), pp.171-214.
Louvieris, P., Driver, J. and Powell-Perry, J., 2003. Managing customer behaviour dynamics in the multi-channel e-business environment: Enhancing customer relationship capital in the global hotel industry. Journal of Vacation Marketing, 9(2), pp.164-173.
Mattila, A.S., 2004. Consumer behavior research in hospitality and tourism journals. International Journal of Hospitality Management, 23(5), pp.449-457.
Matzler, K. and Waiguny, M., 2005. Consequences of customer confusion in online hotel booking. Information and communication technologies in tourism 2005, pp.306-317.
Minghetti, V., 2003. Building customer value in the hospitality industry: towards the definition of a customer-centric information system. Information Technology & Tourism, 6(2), pp.141-152.
Reed, D.D., Reed, F.D.D., Chok, J. and Brozyna, G.A., 2011. The" tyranny of choice": Choice overload as a possible instance of effort discounting. The Psychological Record, 61(4), p.547.
Scheibehenne, B., Greifeneder, R. and Todd, P.M., 2010. Can there ever be too many options? A meta-analytic review of choice overload. Journal of Consumer Research, 37(3), pp.409-425.
Seng, L.C. and Theng, L.K., 2015. Influence of Online Review and Rating System Towards Consumer Preferences in Hospitality Sector. International Journal of Economics, Commerce and Management, 3(12), pp.133-159.
Slåtten, T. and Mehmetoglu, M., 2011. Antecedents and effects of engaged frontline employees: A study from the hospitality industry. Managing Service Quality: An International Journal, 21(1), pp.88-107.
Tanford, S., Baloglu, S. and Erdem, M., 2012. Travel Packaging on the Internet The Impact of Pricing Information and Perceived Value on Consumer Choice. Journal of Travel Research, 51(1), pp.68-80.
Townsend, C. and Kahn, B.E., 2014. The “visual preference heuristic”: the influence of visual versus verbal depiction on assortment processing, perceived variety, and choice overload. Journal of Consumer Research, 40(5), pp.993-1015.
Vermeulen, I.E. and Seegers, D., 2009. Tried and tested: The impact of online hotel reviews on consumer consideration. Tourism management, 30(1), pp.123-127.
