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 Japanese Travel Life Cycle

Summary

This paper offers an alternative way of segmenting a non-western travel market, namely, the Japanese outbound market. The segmentation schema comprises several institutionalised forms of travel likely to be undertaken by a Japanese individual in the course of his or her life. Coined the ‘travel life cycle,' the concept fits Japanese society well due to the highly organized and group-oriented patterns of travel that have emerged over the past one hundred years. While this form of segmentation is unlikely to be usefully applied to western travel markets, its application in the Japanese context may suggest that it has relevance when examining the travel patterns of other tradition-bound and group-oriented Asian travel markets such as Korea, China or Indonesia. The paper's conceptual contribution lies in the implicit suggestion that particular cultures may develop and exhibit unique forms of consumption behavior that lie outside the conceptual framework normally adopted by western academics and marketing practitioners. Manageri-ally, the paper suggests ways by which tourism operators and tourism promotion bodies can more efficiently and effectively target Japanese travellers according to the stage of travel life cycle.     

The Development of Travel Supplier Selling Strategies Based on a Taxonomy of Corporate Travel Department Policies

Abstract

The author argues that company policies which govern the selection and procurement of frequently purchased goods by end users replace individual buying center decisions. A taxonomy of these policies can be used to develop more effective selling strategies than traditional segmentation schemes using company demographics. An empirical illustration is provided in the area of corporate travel policy and travel product marketing strategy.     

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.     

The Situational Influence of Travel Group Composition

Abstract

A substantial amount of statistics and articles in travel magazines indicated that family vacation travel is one of the major worldwide trends. However, very limited empirical research has been dedicated to this special market segment. This study examined Japanese family travelers to Taiwan by comparing and contrasting them with other travel companionship groups including traveling with friends and traveling alone. The importance of travel group composition segmentation was explained and conceptualized through the understanding of the value of social groups from sociology perspective. The results indicated that Japanese family travelers exhibited unique characteristics when traveling. Family travelers tended to be more motivated by learning oriented themes and participated enthusiastically in activities that facilitated experiential learning as well as total physical relaxation. The “traveling with friends” and “traveling solo” segments tended to be seeking more of activities that had strong entertaining and socializing undertones. The traveling solo group appeared to be the most evasive or the least understood in what their needs and preferences were. Marketing implications were discussed.     

A Lifestyle Segmentation Analysis of the Backpacker Market in Scotland

ABSTRACT

The purpose of the research outlined in this article is to provide a travel lifestyle segmentation analysis of one particular tourist group, commonly known as 'backpackers', who reside in Scottish Youth Hostel Association hostels. This research was undertaken due to the lack of understanding and knowledge of this market in the United Kingdom, specifically their needs, wants and motivations. Five cluster groups were uncovered in total: Typical Backpackers, Discoverers, Outdoors, Family Ties, and Routine Travellers. The aim of this article is to provide a wider understanding beyond the demographics of the backpacker and thus provide useful marketing and promotional advice for suppliers to the backpacker market. It also aims to contrast the Scottish backpacker market with findings in Australia, to determine whether cluster groups uncovered are similar in both countries.     

Developing,Operating, and Maintaining a Travel Agency Website

SUMMARY

Travel agencies have increasingly utilized agency Websites on the Internet to enhance their marketing efforts. This exploratory study aims to provide an analysis of the Internet use by travel agencies in the United States. A survey conducted with 102 travel agency professionals collected primary data to examine the perceived value and contribution of a Website to the agency business, purposes for developing and operating a Website, and benefits and challenges faced in operating a travel agency Website. The results of this study not only identified various issues in developing, operating, and maintaining a travel agency Website but also made various suggestions to address those issues. Implications are discussed as to how travel agencies could better understand e-consumer behavior and effectively market their product offerings online.     

How does family influence the travel constraints of solo travelers? Construct specification and scale development

ABSTRACT

Attracting the solo travel market is increasingly important for destination marketing organizations. Despite the wealth of literature on travel motivations of solo travelers, a related domain of research that deserves more attention are the travel constraints that could hinder solo traveling. More specifically, although solo travelers may wish to embark on a journey alone, they must nevertheless address a number of constraints that oftentimes stem from their family’s concerns for them as family represents a critical influencer that could impact their travel decision. Yet, research measuring the influence of family remains under-studied. In order to address this gap, this study connects knowledge on travel constraints with literature on family dynamics to develop a valid and reliable measurement scale for assessing family pressures on solo travelers. Destination marketers can apply this scale to evaluate the effectiveness of their marketing strategies at easing the concerns of solo travelers as a result of family pressures.     

Escaping the Jungle

ABSTRACT

One of the most challenging, but also most interesting, features of tourism and hospitality as an area of study is that there is considerable variability in the backgrounds and training of those who are involved in its management. In some commercial sectors there is a lengthy tradition of the use of marketing as an integral component of management practice, while in public management organisations, marketing concepts are either unknown or mistrusted. This lack of application of marketing is particularly apparent in the management of tourism to protected areas such as National and State Parks and forests. An ongoing challenge in this sector is to conduct research into visitors and how they choose and enjoy their nature based leisure experiences. This article will report on a project to improve the study and management of visitors to the Wet Tropics World Heritage Area in the North Eastern part of Australia. The study involved a travel lifestyle market segmentation of over 1200 visitors to the area based on travel interests, activities and desired rainforest based tourism experiences. The analysis identified four core types of rainforest visitor and these groups were compared and contrasted in terms of their service quality ratings and overall satisfaction. The article concludes with links to the management frameworks for this tourism destination and the value of different segmentation techniques     

Buyer Characteristics Among Users of Various Travel Intermediaries

SUMMARY

As online travel purchases increase, travel intermediaries must change to meet consumer demands. A survey was conducted to identify travelers' selection criteria and expectations of traditional travel agents. Responses from 382 individuals were compared by their methods of purchasing travel arrangements, including those who purchased online, offline, or both. Differences were found among the groups in terms of travel agent selection criteria and expectations; however, the groups were similar in their frequency of travel and number of information sources used. Results and conclusions identified strategies for travel intermediaries to attract and retain clientele.     

Activity Based Segmentation on Pleasure Travel Market of Hong Kong Private Housing Residents

Abstract

If selection of activity types like outdoor sports, entertainment and sightseeing by the travelling public is better understood, more efficient marketing planning strategies can be developed to suit target markets, attract new target markets or increase customer volume in off-peak periods. In the present study, activity based segmentation was used to identify four groups of Hong Kong private housing travellers. They were ‘Sightseeing,’ ‘Outdoor Sports,’ ‘Entertainment and Outdoor Activities,’ and ‘Friends/Relatives Visiting.’ Statistically significant differences among activity-based clusters were found in socio-economic, demographic and trip related variables. Results showed that activity segmentation was a viable approach and that implications existed for packaging and programming, training programmes and promotional materials when targeting the pleasure travel market of Hong Kong.     

Targeting Rural Tourists in the Internet: Comparing Travel Motivation and Activity-Based Segments

This study aims to compare activity-based segmentation and travel motivation segmentation from the perspective of information search behavior and online use behavior by comparing segment heterogeneity. The data were collected from users of three Finnish rural tourism websites with 1754 completed and usable questionnaires to create segmentation solutions based on travel activities and motivations using hierarchical cluster analysis and then comparing the results. The results indicate that travel activities are more useful than travel motivations in finding heterogeneous segmentation solutions, making the travel activity segments more heterogeneous than travel motivation segments as regards their information search behavior and Internet use. The results suggest that in this era of Internet marketing, travel activities are a better segmentation base than travel motivations in order to target different market segments as activities form more heterogeneous segmentation solutions.     

A content analysis of travel agency web‐sites in Korea

The Internet has become a dominant issue in today's tourism environment. This paper is to provide large travel agencies in Korea with a better understanding of their Web‐based competitive environment. A content analysis of the top 60 travel agencies Web‐sites in Korea suggests that many travel agencies do not develop their own Web‐sites and although travel agencies are using the Web, they have not, as yet, fully utilized capabilities of Web‐sites. This study also suggests some implications for successful cyber tourism marketing, including the establishment of a Web‐site, on‐line selling, customer supports, and cyber marketing mix strategy on the Web. Limitations and further research issues are also suggested.     

A Cross-Cultural Comparison of Travel Push and Pull Factors

Abstract

Tourism marketers are confronted with the dilemma of whether standardization or the tailoring of services, products and marketing programs for specific markets is more effective and efficient. It remains to be addressed in tourism research whether travelers from varying cultural backgrounds seek different travel benefits and have different preferences for travel products and services, and to what extent they are similar in their travel behaviors. This research study used national household travel surveys conducted by the Canadian Tourism Commission and U.S. Tourism Industries for a cross-cultural comparison of two different countries, the United Kingdom (U.K.) and Japan. Results showed that travelers from these two countries had different travel motives and benefit-seeking patterns. From a marketing perspective, the branding and positioning of a destination for U.K. and Japanese long-haul travel markets will be more effective if the destination marketing organization (DMO) projects different images within its advertising campaigns. These images should reflect the different travel motivations and benefits desired by the two groups of travelers.     

Travel Agents and Their Survival Thomas

Abstract

The travel agency industry depends upon commissions for a majority of its revenue. When these commissions decrease or stop the industry must change the means in which revenue is made. The Internet has caused a significant reduction in airline ticket sales and therefore has caused travel agencies to change. In addition travel agencies have reduced commissions paid to airlines thus causing more changes. There were four categories of travel agencies discussed in the article along with their adaptation styles. These types include (1) the independent operator of a small travel agency with very limited resources (2) the normal agency with 2 or 3 agents which does a substantial business (3) the larger agency that is high-tech and high touch and depends on automation and the Web to some extent (innovators) (4) agencies that are Web based with very little automation otherwise and who were technologically adaptable and saw opportunity in the Web. The study examines how agencies have adapted and prospered through this transitional period.     

Consumer's Perceptions and Adoption of Online Buying for Travel Products

Abstract

This study examines: (a) the relationship between the advantages and disadvantages of electronic travel shopping, in comparison to traditional in-store shopping from high street travel agents, and consumers' perception of the innovation characteristics (relative advantage, compatibility and complexity) of e-shopping, and (b) the relationship between consumer's perception of these characteristics and their intention to adopt electronic travel shopping. These relationships are examined using a sample of 127 households in Greece. The results indicate that the advantages and disadvantages of physical efforts and time pressure related to traditional in-store travel agency shopping positively influence consumer's perception of the characteristics of e-shopping. The results further show that consumers' perception of the relative advantage and compatibility of electronic travel shopping positively influence their intention to adopt e-shopping. It is also explored whether income, education and age moderate these relationships.     

Analysis of Korean millennials’ travel expenditure patterns: an almost ideal demand system approach

ABSTRACT

Generational cohorts can differ in their consumption patterns and preferred travel behavior. As the millennial generation represents an important economic force and influences new consumption trends, this study utilizes nationwide data and almost ideal demand system (AIDS) approach to examine expenditure patterns of Korean travelers during holidays. In this process, the joint effects of travel-related characteristics are also examined. The results of the AIDS estimation on data from 871 domestic travelers reveal significantly different travel expenditure patterns for cohorts. The findings contribute to furthering the understanding of how different generational cohorts allocate their travel budgets to respective travel expenditure categories.     

Terrorism,Economic Uncertainty and Outbound Travel from Hong Kong

Abstract

This paper reports on the findings of three consumer surveys conducted in Hong Kong examining and outbound travel frequency and future travel intentions. The surveys were conducted in December, 2000, October, 2001, some three weeks after the September 11th terrorist attacks, and in April/May 2002, thus enabling the researchers to track the immediate and medium term impacts of the 9–11 incident on outbound tourism. The study revealed that a dramatic softening in intentions to travel was reported, yet no apparent differences were noted in overall travel participation rates before and six months after the event. However, consumers have modified their travel activities, taking shorter trips and expressing greater concerns about the safety of travel. The study further reveals that consumer confidence in the safety of outbound travel is returning, but more enduring economic concerns are beginning to affect travel intentions.     

The Importance of Food Safety in Travel Planning and Destination Selection

Summary

This study investigates the strength of the relationship between the destination choices of respondents and the perceived risk of food-borne illnesses, as well as respondents' sources of information regarding food safety prior to traveling. Results indicate that food safety was of secondary importance to respondents with frequent travelers more willing to discount the use of food safety in their travel decisions. Female respondents were likely to regard food safety as more important than their male counterparts. Africa was the top region that most respondents would avoid due to food safety concerns. Friends and relatives, travel agents, and magazines and newspapers were the most common sources turned to for health and food safety information. Travel agents were not perceived as a reliable source of food safety information.