Predicting Hotel Choice Decisions and Segmenting Hotel Consumers: A Comparative Assessment of a Recent Consumer Based Approach

Abstract

Given the intensified competition to attract today's increasingly discerning hotel guests, it is vital for hotel managers to understand the set or bundle of hotel attributes which are demanded by the potential traveler. Unfortunately, marketing research in hotels is still mainly confined to the analysis of guest-related data collected during registration or from guest comment cards. These data, however, have little merit as predictors of customer behaviour and cannot answer the “what if” questions. In recent and past research in hospitality and tourism, researchers have demonstrated the use of product attributes in predicting consumer preferences and segmenting markets (Bell and Morey 1997; Kim 1996). In undertaking this approach to behavioral study, many researchers in the field have been attracted to use conjoint attribute part-worths, (the judgmentally quantified attribute valuesderived from conjoint modeling. This study attempts to utilize the compositional self-explication model as a reference model to assess the comparative superiority of the conjoint model in predicting client preferences among travelers to Hong Kong. It also seeks to reveal subgroup preference variations by using two segmentation approaches. The overall finding indicated that the most important hotel attribute sought by all respondents is Room Rate, followed by Star Rating, Location, Brand and Room Type. In terms of market segments, the results revealed similar preference profiles among leisure, short-haul and infrequent travelers as one group and business, long-haul and frequent travelers as another.     

Segmentation by recreation experience in island-based tourism: a case study of Taiwan's Liuqiu Island

This study expands the profile characteristics of island-based tourists by assessing recreation experiences. In so doing, it aims to elucidate the market segmentation of island-based tourists by assessing the recreation experiences of tourists at Liuqiu Island in Taiwan. A total of 481 useable questionnaires were obtained and analyzed. The analytical results indicate that tourists can be segmented into four clusters according to their recreation experiences: multi-experience recreationists, aestheticists, hedonists and knowledge seekers. These four different tourist segments performed significantly differently in terms of environmentally responsible behavior (ERB). The market segmentation introduced in this study can be helpful for elucidating tourist experiences and ERB implementation. Understanding tourism experience preferences will help managers develop marketing strategies and design tourism products to meet tourists’ needs. This study's findings could be used to provide different strategies for different segments of tourists. To help manage natural resources, managers should design their environmental programs to encourage different segments of tourists to participate in ERBs. We provide valuable managerial implications for the sustainable development of island-based tourism.     

Activities,experiences, and environmental settings: A case study of recreation opportunity spectrum relationships

Abstract

One tenet of the Recreation Opportunity Spectrum (ROS) is that relationships exist between outdoor recreation activity styles, desired psychological experiences, and preferred environmental settings. The purpose of this study is to examine the nature and complexity of these relationships in light of the Recreation Opportunity Spectrum conceptual model with a group of diverse outdoor recreationists. Psychometric measures were utilized to assess the desired experiences and environmental preferences of four activity preference groups. The results indicated that significant relationships do exist between the study variables. However, systematic explanations for these relationships were not clearly apparent from the results of this particular study. The existing theoretical and empirical literature base is inadequate to accurately articulate the systematic linkages between these three concepts. Further development and refinement of these relations will occur only incrementally as a growing empirical base allows for theory construction.     

Lifestyle Segmentation in Tourism and Leisure

ABSTRACT

This article examines three different approaches to lifestyle segmentation in improving the quality of tourism and leisure marketing decisions in three separate cases. Tourism and leisure products are prototypical lifestyle purchase yet in many tourism research studies visitors are described by demographics or tourism behaviour only. These cases illustrate different approaches to lifestyle segmentation. Firstly, there are segmentation schemes based on external logic that can be broadly applied across a range of markets, including tourism and leisure. Alternatively, there are schemes that are based on a 'conversation' with the data and which rely on an internal logic within that data that may not transfer to other market contexts. Between these two lie schemes that apply external paradigms to specific datasets. The cases selected illustrate points along this spectrum.

The first case study examines the use by government tourism organizations of lifestyle segmentation 'bought in' from an external source. Here lifestyle segmentation data is collected from a representative sample of the Australian population as part of a commercial “single source” data set. The second case is based on a regional tourism study, which has utilized prior theory to develop its own lifestyle segmentation and at the same time related this to boarder characteristics of tourists in Tropical North Queensland. The third case examines the development of tailored lifestyle segmentation among 'event' spectators based on purely internal criteria unrelated to the broader population. These cases provide insight into the appropriate development and application of lifestyle segmentation and the use of the data by tourism and leisure managers. Managers may think about the type of lifestyle segmentation approach required based on how the segmentation scheme results need to be related to the wider market or population.     

Tourist preferences for rural house stays: Evidence from discrete choice modelling in Spain

Although the appeal of rural houses for tourists lies mainly in the natural surroundings and their intrinsic rural characteristics, there are other factors which are also important such as their size, type of building, quality of equipment, services and activities offered. To evaluate the tourists' preferences for these potential or effective attributes, a stated preference experiment was conducted in the Northwest area of the Region of Murcia and the data are analysed using discrete choice modelling methodology. Consistent specifications for multinomial logit and mixed logit models that consider variations in tastes within tourists' preferences are found. The results could be of use to promoters and owners of rural houses when planning marketing and promotional campaigns or when taking effective investment decisions.     

Marketing Strategies for Last-Minute Travel and Tourism

Abstract

Travel and tourism arranged at the “last minute” has become a growing trend among consumers today. Responding to this trend, more and more travel/tourism firms are offering services catering to consumers seeking last-minute travel and tourism opportunities. Yet, clearly, not all last-minute travellers are alike. Variability in last-minute consumer characteristics such as motivations, lifestyles, and benefits sought suggests opportunities for astute marketers and revenue managers to collaborate in further segmenting the last-minute market and developing more effective marketing and revenue management strategies to potentially increase the firms' revenues, profitability, and customer satisfaction. Toward this end, this article evaluates and discusses marketing strategies, marketing mix elements, and segmentation approaches that may be most appropriate for more effective marketing and revenue management in the last-minute travel and tourism market.     

Coping with Stress in Outdoor Recreational Settings: An Application of Transactional Stress Theory

This study uses a transactional model of stress and coping as a way to understand how outdoor recreationists deal with negative setting elements during a recreation experience. Within the transactional model, coping behaviors can be viewed as the result of on-going transactions among personal and environmental factors, perceptions of threat or stress, and the perceived effectiveness of coping strategies. The current study focuses specifically on the relationship between reported levels of stress and the types of coping strategies used by recreationists in Glacier National Park. Findings suggest that certain behavioral and cognitive coping responses to stress are associated with different levels of reported stress. Specifically, respondents with lower levels of stress were more likely to engage in certain cognitive adjustments to cope with detracting situations. Respondents reporting higher levels of stress were more likely to engage in either direct action aimed at changing the environmental conditions or are displaced entirely from the recreational setting. In addition to these primary findings, the study discusses the range of coping behaviors employed.     

The moderating role of context in the effects of choice attributes on hotel choice: A discrete choice experiment

This study used discrete choice modeling to identify the moderating role of context in the effects of cognitive, affective, and sensory attributes on hotel choice. To evaluate a hotel consumer's choice for attributes in a different choice context (leisure vs. business), a stated preference experiment based on D-optimal design was conducted using both a multinomial logit (MNL) model and a random parameter logit (RPL) model. The results show that while leisure travelers' choices for family vacation trips were more influenced by price and overall atmosphere than were business travelers', business travelers put an emphasis on room quality and comfort when on a business trip alone. The study demonstrates the trade-offs made by leisure and business travelers when choosing a hotel through discrete choice modeling. The findings provide hotel managers with important insights and implications in terms of target segmentation, product development, and marketing communication strategy.     

Segmenting foodies for a foodie destination

ABSTRACT

The consumption of food is an integral part of a tourism experience. As foodie travellers seek out unique food experiences, it is valuable for tourism destination managers to understand their preferences and behaviours. Using a 61-item foodie activity scale, 2948 surveys were analyzed to determine clusters of foodies. The findings suggest that researchers or destination managers should avoid a “one size fits all” approach in the development of foodie destinations. Giving attention to the travel preferences and types of experiences that foodie segments prefer may allow communities reap the benefits of serving as a destination for foodie travellers.     

Tourists’ travel time values using discrete choice models: the recreational value of the Teide National Park

Abstract

The value of travel time is one of the most important factors in recreation demand models. Traditionally, the most common approach for its calculation has been the use of different proportions of the wage rate; however, criticisms of this method abound because in a recreational trip the relevant measure is the opportunity cost of leisure time rather than work time. In this paper, we adopt a novel approach in the literature using discrete choice models based on short-term decisions and independent of the labor market. We obtain the value of travel time through the trade-off between time and money considered by the tourist visitors when choosing the transport mode and we present the first calculation of the recreational value of the Teide National Park. Specifically, using a Revealed Preference survey of 801 park visitors, we estimate Mixed Logit models accounting for random preference heterogeneity, derive travel time values and incorporate them into a Zonal Travel Cost Method. This approach allows us to estimate different time values depending on transport mode and stage of the trip and shows that the use of discrete choice models instead of the wage rate approach has a strong impact on the recreational value calculated.     

Stated preference and choice models applied to recreation research: A review

Abstract

This article discusses the use and usefulness of stated preference and choice models in recreation/leisure research. Stated preference and choice models require one to design decision experiments to study recreational and leisure decisions made in hypothetical or simulated markets. Historically, such experiments were uncommon in recreation and leisure research; therefore we pay particular attention to comparisons of the stated preference modeling approaches with modeling approaches based on observations of choices made in real markets, such as the analysis of discrete choices using conditional and nested multinomial logit models. The conceptual and theoretical bases of stated preference and choice models are discussed; and procedures for developing such models, including different design strategies, are outlined. Potential uses of these models in recreation research are illustrated with reference to several recent empirical applications.     

Japanese Travelers' Service Preferences in U.S. Hotels

Abstract

This empirical study identifies specific preferences of Japanese visitors staying in U.S. hotels. Relevant literature is reviewed in an attempt to identify guest services which Japanese visitors prefer. This paper offers hotel operators suggestions about what they need to understand in order to attract and retain Japanese visitors. The results of the study will help hotel operators select appropriate products and services in order to better serve Japanese customers.     

Evaluating Different Bases for Market Segmentation

Abstract

While market segmentation has become a major approach to understanding the nature of tourists and their travel behaviour, there exists considerable debate over which bases and statistical approaches provide the best segmentation solutions. Morrison (1996) has offered eight criteria for evaluating the success or value of a segmentation result. This paper used these eight criteria to evaluate two different segmentation approaches used with the same survey sample. An a priori geographic segmentation of visitors to the Wet Tropics region of Australia was compared to an activity based a posteriori segmentation approach. There was evidence that the activity segmentation approach fulfilled the eight criteria more adequately than the geographic approach. It was further suggested that for large samples a multi-stage methodology might be a desirable approach for meeting all eight marketing segmentation effectiveness criteria.     

The shares method for revealing latent tourism demand

This paper develops an intuitive methodology to reveal latent tourism demand. The aim is to quantify its scale by distinguishing the pair of origin-destination and the kind of tourism. The methodology starts measuring the market size that depends on origin population size and their willingness to participate in outbound tourism. Additionally, it takes into account the varying preferences of each origin population for different kinds of tourism. Finally, it compares the current market share of tourism with the expected market share, which is estimated using a random parameter logit model. The study draws on data from EU-28 countries. It provides indicators to select target markets to be strengthened and design strategies based on better air connectivity or oriented marketing campaigns.     

Market Segmentation in Time of Crisis

SUMMARY

The MICE sector (meetings, incentives, conventions, and exhibitions), has generated high foreign exchange revenue for the economy worldwide. In Thailand, MICE tourists are recognized as 'quality' visitors, mainly because of their high-spending potential. Nonetheless, Thailand's MICE sector has been influenced by a number of crises in the past since September 11, 2001. While a number of researchers have discussed the tourism market segmentation strategies during a crisis situation, less effort has focused on the MICE sector. Using Thailand as a case study, this research has adopted Seaton and Bennett's (1996, p. 31) concept of tourism market segmentation in order to understand the market segmentation strategy implemented by organizations in the MICE sector in time of crisis.     

Announcements

Abstract

In this study we examined the effect of specialization on behavioral choice among Wisconsin goose hunters, who were able to choose a relatively easy hunt at the Horicon Marsh or a more complex hunt in the exterior zones. Past research has shown that more specialized recreationists have differing motives, attitudes, satisfaction levels, crowding perceptions, environmental preferences, and management preferences. Our goal in this study was to extend this research to behavioral choices and to learn more about the dimensions of specialization in goose hunting. Specialization did not predict behavioral choice among the sample. Specialization, as measured by past experience, commitment, media involvement, club membership, and preferred hunting style, did not differ significantly when comparing Horicon goose hunters and exterior zone hunters. Novice hunters hunted alongside experienced hunters, and behavioral choice appeared to be more a function of structural constraint than attitu‐dinal preference. Specialization did explain differences in hunter judgments of quality, correlating negatively with shooting and bagging and positively with social and natural components of a quality experience. These findings indicate that although the specialization framework can effectively predict attitudinal differences among participants in a given activity, it is less efficient at predicting behavioral choice. Consequently, specialization researchers need to be cautious about inferring levels of specialization from observations of locational choice.     

Regionalism in Tourism-The Case for Kenya and Ethiopia

Abstract

To understand the behavior of tourists from different cultures, a cross-cultural study was conducted to examine Japanese and American college students' travel preferences. A psychographic approach based on value orientations was used to understand the relationship between travel preferences and students' cultural tendencies of horizontal and vertical individualism and collectivism. The study confirmed previous findings that Japanese and American college students have different cultural tendencies and travel preferences. In addition, horizontal and vertical individualism and collectivism significantly correlated with several travel preferences among Japanese and American college students.     

Heritage tourism: A question of age

This research analyzes the demographic characteristics and motivations of the senior and non-senior market segments in selecting a heritage site. By studying how these two groups of individuals select heritage sites, planners will be better able to comprehend what these individuals expect from their visit. A survey consisting of a historic preservationist scale, benefits sought scale, services sought scale, historic site preference scale, and demographic information was mailed to a systematic random sample of 700 travelers requesting tourism information about Virginia. The findings show that many similarities exist between the senior and non-senior market. However, the senior market is more likely to visit a historic site that is less convenient to reach, has fewer facilities, and is more authentic and less developed; while the non-seniors are motivated more by opportunity to escape work overloads.     

Outdoor recreation participation and views on resource development and preservation

Abstract

Views on the preservation of resources versus their development for recreation are compared among participants in three types of outdoor recreation: “appreciative”; activities (cross‐country skiing, hiking, and canoeing); “consumptive”; activities (fishing and hunting); and “mechanized”; activities (motorboating, snowmo‐biling, and trail biking). The results from a 1984 questionnaire survey conducted in Edmonton and Calgary, Canada, indicate a stronger preservationist orientation among participants in appreciative activities, whereas (with the exception of hunters) participants in consumptive and mechanized activities hold stronger pro‐development views. These differences cannot be attributed to simultaneous variations in socioeco‐nomic characteristics or environmental attitudes among the recreational groups. The findings suggest that differences in outdoor recreational activity preferences represent an important source of variation in views about appropriate levels of preservation versus development of Alberta's natural and wildernesss resources.     

An Analysis of Cruise Ship Meetings

Abstract

Cruise ships have become one of the many options for corporate meeting planners when faced with a decision regarding a destination for meetings and incentives (employee rewards). In the past five years, all major cruise lines have unveiled mega cruise ships to attract a piece of the more than $20 billion corporate meeting and incentives market (Buia, 2001). But how much interest really exists among the meeting planners in holding their meetings aboard cruise ships? Are cruise ship meetings really comparable to meetings planned in land based meeting facilities? This paper explores the meeting planners' perceptions and interests in cruise ship meetings.