Segmenting Leisure Travelers by Risk Reduction Strategies

This study is an initial attempt in using risk reduction strategies as the basis for segmenting leisure travelers. Results of the study generated insights into the nature of consumer markets and created three segments of travelers who adopted risk reduction strategies in different ways. The three leisure travelers' segments include: socially reliant risk reducers, self-initiated risk reducers, and unconcerned about risk reduction. Travel behaviors and sociodemographics of the three segments were also compared.     

Heterogeneity in risk and safety perceptions of international tourists

The travel decisions of international tourists have, over the past decade, been significantly affected by external events, such as the fear of pandemics and terrorist attacks. Yet, little attention has been paid to heterogeneity among tourists with respect to risk perceptions. The question whether some tourist segments are less sensitive to external risks and thus more attractive to tourism industry in times of crises remains largely unanswered. This study conducts a data-driven segmentation of heterogeneity in the tourist population with respect to perceived risks of international travel and assesses if market segments with different risk perception patterns are distinct in other behavioral and personal characteristics. Additionally the study includes nationality as a proxy for “cultural background”, here analyzed in light of Hofstede's (1983) model. Practical implications are discussed.     

Pricing of experience products under consumer heterogeneity

An experience is designed to engage the customer and leave a lasting memory. While experience is relevant to a broad array of marketing situations including retailing, leisure, entertainment, and hospitality industries, no prior studies could be located that have assessed the values of experience components to customers, and the pricing implications of such assessments.This study illustrates how an experience offering can be designed and priced using the context of the upscale dining experience. Choice-based conjoint analysis and a hierarchical Bayes methodology are used. A cluster analysis of the part-worth scores reveals three very distinct benefit segments. This study shows how a marketer can: (1) Design and price experience products to match the needs of the different benefit segments. This study also shows how to find optimum price for maximization of revenue and profit. (2) Examine how a product would perform against known competitors, and the potential impact of new competitive entries. (3) Determine own and cross-price elasticities of demand to assess resiliency in the face of price competition.     

Wildfires and tourist behaviors in Florida

The impacts of wildfires on tourism have largely been examined with emphasis on economic losses and recovery strategies. Given the limited research from a demand perspective, this study examined tourist risk perceptions and reactionary behaviors toward wildfires in Florida. Data (N = 771) was collected among a U.S. sample of non-resident overnight leisure travelers that had visited Florida previously. Three clusters were identified with a larger segment in the middle (Conscious Travelers) of the curve, and higher risk (Cautious Travelers) and lower risk (Courageous Travelers) segments at each end. In addition, the segments formulated a pattern with respect to their perceived levels of risk, threat level of wildfires based on risk types, and travel behavior modifications over specific wildfire situations that could influence future travel behaviors in fire prone destinations. This segmentation strategy is useful for Destination Management Organizations as differential marketing messages could be targeted to each segment during crisis situations.     

Strategic consumer behavior in online hotel booking

This study investigates strategic consumer behavior in online hotel booking. Free cancellation policies enable consumers to rebook the hotel room at a later time should the price drop prior to the date of stay. A discrete choice experiment is used to infer consumer preferences for free cancellation and non-refundable rates under different scenarios. The study also examines the moderating role of the risk attitude of consumers. Risk-seeking consumers show preference for a free cancellation rate that increases with the availability of an automatic rebooking service. Although a higher booking window increases the utility of the free cancellation rate, such impact decreases as risk propensity increases. The identification of four distinct consumer segments provides clear implications for industry practitioners.     

Mitigating tourism seasonality: A Quantitative Approach

Seasonality is one of the most problematic but least understood aspects of tourism. Many destinations are suffering from this phenomenon every year, yet limited efforts have been made to overcome the troublesome issue. This research proposed an approach to obtaining quantitative solutions which can ultimately assist marketers in mitigating seasonal effects. The study applied financial portfolio theory, widely used in securities allocation decisions. While determining the segment mix solutions to seasonality and describing the Seasonal Demand Efficient Frontier, this paper suggests that marketers should select a mix of tourism segments that fall along the Frontier given a demand–risk target.     

Generation Y consumers’ selection attributes and behavioral intentions concerning green restaurants

The objectives of this study are to examine the Generation Y consumer segments’ selection attributes and behavioral intentions toward green restaurants. A survey was administered to college students between the ages of 17 and 30 at a university in a Southeastern United States city. This study identified four different consumer segments of Generation Y college students according to their food-related lifestyles. Across the four segments, there were significant differences in selection attributes. In addition, significant differences were identified between the four segments regarding their behavioral intentions toward green restaurants. Finally, the marketing implications for the target groups are discussed.     

Analysis of Structural Equation Model for the Student Pleasure Travel Market: Motivation,Involvement, Satisfaction,and Destination Loyalty

Greater understanding of the model that plays a role in attracting certain visitor segments thus allows travel businesses to develop marketing strategies. This research analyzes an empirical model including push motivations, pull motivations, cognitive involvement, affective involvement, satisfaction, and loyalty to students' top domestic and international destinations. Results suggest push motivations are a good predictor of pull motivations, which in turn are considered a good predictor of cognitive involvement. Cognitive involvement is a good predictor of both affective involvement and satisfaction. Affective involvement is a good predictor of satisfaction. This study also confirms the significant association of satisfaction with destination loyalty. Hence, the proposed model provides a good quality of theoretical framework to positively predict travel demand toward domestic and international destinations.     

Tourism,risk tolerance and competences: Travel organization and tourism hazards

Research on how individual tourists respond to risk has largely focussed on risk perceptions. This paper draws on behavioural economics to analyse the influence of risk tolerance and risk-related competences on how tourists organize their tourism travel, and the importance that they ascribe to specific types of tourism hazards. Whereas most tourism research on risk has been based on small, or highly age-specific surveys, or particular market segments, this paper utilises an innovative, large-scale survey drawn from the range of the UK population. There were significant differences between package tourists and individual ‘drifter’ tourists in terms of their socio-demographic characteristics, general and tourism-specific risk tolerance, and competence – both real and illusory – to manage risk. Age, and tolerance of both general and tourism-specific risks, were associated with the importance of hazards as deterrents to tourist behaviour, but the evidence for competences was mixed.     

Understanding tourism leaders’ perceptions of risks from climate change: an assessment of policy-making processes in the Maldives using the social amplification of risk framework (SARF)

Coastal tourism destinations are highly vulnerable to climate change risks, including sea-level rise, inundation, and extreme weather events. While such risks pose major challenges to the sustainability of these destinations, they have been insufficiently examined in tourism research. This study uses the social amplification of risk framework as a basis for understanding how climate change risks are perceived and what processes lead to an amplification or attenuation of risk perceptions at management and governance levels. In the context of the extremely low-lying Maldives, 12 leading tourism stakeholders, including representatives of government, industry, and NGOs, were interviewed to gather empirical data on risk perceptions. Results indicate that, while climate change risks are amplified for international audiences, several factors lead to an attenuation of risks for domestic audiences. As a result, local tourism stakeholders are not immediately concerned, and adaptation measures are woefully inadequate to cope with future climate risks. Detailed reference is made to the policy inertia found, the conflicts inherent in playing down risk in order to attract jobs, profitable tourism investment and tourists, and the equally pressing need to stress risks in order to attract expertise and funds to enable adaptation policies to be designed and funded.     

Testing Segment Stability: Insights from a Rural Tourism Study

The majority of earlier segmentation studies have focused on finding segmentation solutions rather than on applying the results to practice, and testing the viability of the results. In this study a unique opportunity is used to test how the segmentation solutions of an earlier rural tourism segmentation study conducted in 2009 represent rural tourist segments in 2011, and how well rural tourists can relate to the segments found in the earlier study by using multiple choice questions. Also, different segmentation methods are compared regarding their accuracy to identify the segments. These results show that the four segments identified in the earlier study continue to exist two years later as respondents are able to relate to the segments quite well. However, segment sizes are crucially different and there is some overlap between segments. Travel motivations measured using binary scale produce more accurate segments than motivations measured using a Likert-type scale.     

Mature consumers’ patronage motives and the importance of attributes regarding HMR based on the food-related lifestyles of the upper middle class

The objectives of this study are to explore the food-related lifestyle segments of the mature market, to identify its socio-demographic characteristics, and to investigate the differences in their attitudes toward Home Meal Replacement (HMR). A survey was conducted of adults 55 years of age and older living in Seoul, South Korea. Out of the 600 distributed questionnaires, 361 were retained for final analysis, which is a response rate of 60%. Cluster analysis identified five consumer segments. Significant differences were found among the five segments in terms of socio-demographic characteristics and attitudes toward HMR. This study shows operators of HMR the patronage motives and attributes that each segment values when considering HMR.     

Profiling the segments of visitors to Portuguese protected areas

This study identifies the diversity of domestic visitors to Portuguese protected areas (PPA) based on benefit segmentation. The segments of PPA visitors are also compared with other nature-based tourist segments using some empirical benefit segmentation literature. Data were collected by means of a self-administered questionnaire and multivariate statistics techniques (principal components, hierarchical and K-means cluster analyses) were applied. Five distinct segments of visitors were identified based on the motivation for their visit and further characterized by the perceived importance of activities, facilities and services, frequency of visit and socio-demographics. Three segments are nature-focused and two are focused on activities or events. Only one segment shows specific interests and motivations associated with ecotourism and similar characteristics to international ecotourists; moreover, the reasons for the visit in one segment are unrelated to any of the motivations of nature-based tourism. Some implications for management are also described.     

Local government intervention in tourism-driven rural gentrification: Types and interpretative framework

Exploring the role that the local government plays in tourism-driven rural gentrification has the potential to make a contribution to rethinking the influence of power mobility on local development. Using 115 in-depth interviews and non-participant observation, this study examines the local government's changes in interventions in Pingnan county, Fujian province in China. It was found that the Pingnan County Government adopted deregulated, performative, and contractual interventions as strategies in three different spatio-temporal scenarios of tourism-driven rural gentrification; the underlying logic of tourism-driven rural gentrification is the vertical and horizontal mobility of power, which is directed by the internal mechanism of “political utility-power flexibility-risk control.” This study is expected to extend the applicability of rural gentrification theory to government-dominated contexts and provide practical insights for policymakers to intervene in an adaptive and periodic manner in local socio-economic affairs, including rural tourism development.     

The sustainability–profitability trade-off in tourism: can it be overcome?

This paper answers key questions about personal and industry decision-making in implementing sustainable tourism. Being environmentally friendly is typically associated with sacrifice, including sacrifice of comfort (e.g. walking rather than driving), sacrifice of time (e.g. recycling garbage) or sacrifice of money (e.g. buying more expensive locally grown vegetables). Consequently, the tourism industry perceives sustainable tourism as a sacrificial touristic niche, one that is associated with additional cost but appears to attract customers who do not spend enough money to compensate for the extra effort. This paper explores a perceived trade-off between minimising environmental damage and maximising revenue, by finding market segments that are environmentally friendly and have high expenditures. An online survey was made of 1003 Australian domestic tourists. Results indicate that tourist segments vary significantly in terms of their environmental impacts and vacation expenditure. Six segments were identified. Two market segments, containing 40% of the total market, that leave small environmental footprints while maintaining high expenditure were found, indicating that market segmentation when coupled with marketing/demarketing policies can be used as a strategy complementary to the development of destination-based initiatives to reduce the environmental impact of tourism.     

Understanding US Traveler Behavior to Asian Countries: A Secondary Analysis Approach

Over the last few decades, US travelers have taken an increasing number of trips to Asian countries. Considering the strong growth of the Asian tourism market and the consistent growth in numbers of US travelers to Asian countries, an examination of these travelers to identify meaningful market segments can benefit Asian destination marketers in developing better marketing strategies. This study aims to conduct a distinctive analysis for segmenting the US travelers to Asia market through empirical examination. The study data set, obtained from a Travel Activity and Motivation Survey, identified three lucrative segments: ProTravelers, Safety Conscious Travelers and Traditionalists. The study presents the distinctive characteristics of the three segments and discusses managerial recommendations.     

Image-Based Segmentation of Cultural Tourism Market: The Perceptions of Taiwan's Inbound Visitors

This paper aims at testing the effectiveness of using an image-based approach to segment the cultural tourism market. Identifying 14 image attributes of cultural attractions, Taiwan's inbound tourists were then surveyed to rate the importance of these attributes. Applying a factor–cluster segmentation approach, four discrete image segments were identified, including arts and museum, heritage, living culture, and resulted in a sample of 954 respondents. The research findings reveal several theoretical and empirical implications, including the propositions of cultural distance, omnivorous/univorous, experiential and informational familiarity of destination and the two-dimensional model of cultural tourist typology.     

Performance Analysis of Lodging REITs in Relation to Market Segments

This article examines the financial performance of lodging real estate investment trusts (REITs) in relation to their market focus. Secondary data were collected for from 2004 to 2008 from lodging REITs that were traded on major U.S. stock exchanges. Data envelopment analysis (DEA) was used to assess the efficiencies of market segments to generate financial performance. The results showed that two lodging REITs were consistently efficient during the study period relative to other lodging REITs. In particular, lodging REITs investing and/or operating in one or more relatively similar market segments and those focusing on the upper-upscale segment were more efficient than others. This study could provide managers, owners, and investors of lodging REITs preliminary evidence of the relationship between market segments and firm performance. This article also proposes a framework for future investigations to assess the performance of REITs.     

Market structure and demand-side substitutability of chained urban hotel segments

This study analyzes how the demand in hotel markets is divided amongst chained hotel segments. Hypotheses regarding consumers’ switching behavior due to changes in income levels and relative prices are tested using data from 25 major urban markets in the United States, encompassing segments ranging from luxury to economy over 43 quarters. The effects of differentiation and market concentration are also investigated in this context. The results suggest that leisure and individual consumers of the low-scale segments may be trading “up” to higher scales when their income increase, but that upscale segments’ corporate consumers are not necessarily trading “down” when Corporate Income fall. In addition, only low-scale segments appear to be substitutes to upscale segments, but the inverse seems not to be true. Also, properties in mid-range segments are found to be the only ones benefiting from a high market concentration, while low-scale properties turn out to be the ones gaining from differentiation through price.     

Exploring asymmetric effects of attribute performance on customer satisfaction in the hotel industry

Understanding the asymmetric effects of attribute performance (AP) on customer satisfaction (CS) is important for the managers in the hotel industry. Although several studies concerning this issue have been conducted, the varies of asymmetric effects across different market segments have not been revealed. To this end, this study aims to explore the asymmetric effects of AP on CS with respect to different market segments, including different types of hotels, different types of travelers and travelers from different regions. Four theories, i.e., expectation-disconfirmation paradigm, three-factor theory of CS, customer delight theory and prospect theory, are adopted to explain the formation of CS from the perspective of different market segments. The penalty–reward contrast analysis (PRCA) and asymmetric impact-performance analysis (AIPA) are used to analyze 1,547,869 user-generated ratings collected form TripAdvisor posted by the travelers from 140 countries concerning 9,596 hotels from 75 capital cities around the world. The results suggest that the asymmetric effects of AP on CS may vary across different market segments, including different types of hotels, different types of travelers and travelers from different regions. In addition, the priorities of hotel attributes for each type of hotel with respect to different types of travelers and travelers from different regions are also analyzed by AIPA. The obtained results will be valuable for researchers to conduct further studies and hotel managers to formulate improvement strategies.