4. Market Segmentation IN Tourism PDF

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MARKET SEGMENTATION IN TOURISM...

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● 4.MARKET SEGMENTATION IN TOURISM ● what influences motivation? ● Personal Factors ● Age, gender, stage in the family lifecycle ○ ○ ○ ○

Adolescence (15-19) Young adults (to late 20s) Family establishment (25-55) Later years (55 up)

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SOCIAL & SITUATIONAL FACTORS

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Social class and income: categorising people into

different groups based on income and participation. A Higher managerial, administrative or professional B Intermediate managerial, administrative or professional C1 Supervisory or clerical and junior managerial, administrative or professional C2 Skilled manual workers D E

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Semi and unskilled manual workers Casual or lowest grade workers, pensioners and others who depend on the state of their income

Social Class and tourism

○ People in a higher social class enjoy a more active

and wider range of leisure activities. ○ Various social classes have differences in perceptions, attitudes and preferences for holiday experiences ○ Changes in the price of holidays at a destination can influence the perceptions of customers of the destination.

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Motivation Constraints

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Market Segmentation

Although there may be motivation to travel, people also experience factors that hinder them from fulfilling them such as limitations of ○ Income ○ Time ○ Physical mobility

○ Market segmentation is a process of classifying

various types of customers in groups, because every group has their own needs. ○ A market segment or group demonstrates similar buying behaviour, that is, preferences and attitudes towards a product.

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Why is segmentation important?

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Segmentation is important as it helps to market the tourism product more effectively by:-

○ Targeting the types of tourist that is best suited and

valuable for the destination ○ Managing the image of the destination

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Business travellers want to have special facilities in the hotels that they are staying at (WI-FI, printing services, checking out easily, conference rooms)

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Types of market segmentation There are different ways to segment the tourism market:○ Segmentation by purpose of travel:Business, leisure, VFR, health, sport ○ Interactional segmentation:- based on the effects of different types of tourists may have on the same destination

Demographic Segmentation ○ This is grouping consumers by where they live, their income, their age…

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When we were younger we used to travel with our families and now we are traveling in order to find more experiences.

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Psychographic Segmentation ○ Divides a population into groups that have similar psychological characteristics, values and lifestyles. ○ Lifestyles: people’s decisions about how to live their daily lives including family, job, social and consumer activities ○ Remember Plog’s typology?- it is a psychographic

segmentation of tourists

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FAIR TRADE - trade between companies in

developed countries and producers in developing countries in which fair prices are paid to the producers. Some people that care about the ethical shopping are willing to pay.

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Geographic Segmentation ○ Demand for some holidays experiences can vary according to the geographic region ○ North American tourists want more fun, resort hotel based holidays ○ European tourists want more culture e.g. Germans prefer green holidays?

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Travel Decisions ○ Large number and variety of decisions go into a vacation or any trip away from home ■ General decision to travel away from home ■ Length of trip; time period ■ Destination choice; single or multiple ■ Use travel agent to help ■ Book in advance or "wing it"

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Information Gathering ○ Amount and timing is important to tourism suppliers. ○ Information seeking ■ External search of two types, personal sources and non-personal sources and non-personal sources ● Personal sources – friends, relatives, salespeople

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Segmenting the tourism market

○ Marketing principles can be used to find out what different types of tourists want and need. ○ Market segmentation is the process of dividing a large heterogeneous market into two or more smaller more homogeneous market segments; consumers with similar needs.

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Applying Segmentation Theory ○ There are almost as many potential market segments as there are groups of people. ○ The task of deciding when and how to segment can be clarified by addressing the following questions: ○ Can the market segment be easily identified and

measured in terms of both purchasing power and size? ○ The task of deciding when and how to segment can be clarified by addressing the following questions: ○ Is the segment large enough to be potentially

profitable? ○ Can the segment be reached efficiently and effectively through advertising/promotions?

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Specialised Tourist Segments ○ Business and professional travelers ○ Incentive travelers ○ SMERF (Social, Military, Education, Religious, and/or Fraternal Groups) ○ Mature travelers ○ Special-Interest Travelers

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MATURE TRAVELERS

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SPECCIAL-INTEREST TRIPS

BUSINESS TRAVEL PROFILE

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DELIVERING HIGH QUALITY SERVICE ○ Must meet customer expectations by satisfying needs ○ Need to provide consistently high-quality service ○ As market becomes more competitive, service

quality becomes more critical for success

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Cooper (2008) Ch. 2.

SEMINAR. ADVERTISMENTS. ● AUSTRALIA ● INDIA ● JAMAICA

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