Tourism: The Business of Hospitality and Travel: Marketing To The Traveling Public

Tourism: The Business of Hospitality and Travel
Sixth Edition
Chapter 2
Marketing to the
Traveling Public
Copyright © 2018, 2014, 2010 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
1. Explain the importance of segmenting the
tourism market
2. Identify the four major models of tourist
motivations
3. List and describe the steps involved in
segmenting a market
4. Describe the major approaches that are used to
segment the tourism market
Learning Objectives (2 of 2)
5. Discuss the importance of business and
professional, incentive, SMERF, mature, and
special-interest travelers
6. Describe how information gained from
segmenting the tourism market can be used to
target and meet the wants, needs, and
expectations of the traveling public
Center of the Tourism Model
• The center of the tourism model is
travelers/tourists
• Highly diverse groups with some same and some
different needs
• Important to understand consumer behavior
Consumer Behavior
• Consumer behavior is the study of consumer
characteristics and the processes involved when
individuals or groups select, purchase, and use
goods and services to satisfy wants and needs
• Consumers are likely to return to buy the same
products when their needs are met
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"
– Stick to the plan or modify during the trip
Figure 2.1
The Travel Decision-Making Process
Information Seeking (1 of 3)
• Existing base of knowledge and experiences
– This form of memory reliance is called internal
information search
• Information seeking
– External search of two types, personal sources and
non-personal sources
 Personal sources – friends, relatives, salespeople
 Non-personal sources – print media, advertising, etc.
– Tourism suppliers often control the content of non-
personal sources, e.g., website and advertising, but not
travel guides
– Induced information: messaging that is controlled by
the supplier
– Business travelers and tour package travelers often
have decisions made for them
– Independent travelers may make all decisions prior to
trip or be completely spontaneous en route
Foundations for Understanding Tourist
Motivations
• Push and Pull Motivations
• Maslow’s Hierarchy of Needs
• The Travel Career Patterns
• The Psychocentric-Allocentric Model
Push and Pull Motivations
• Push to travel by individual personality traits or
individual needs and wants
• Pull to travel from appealing attributes of travel
destinations
• Inhibitors to travel: lack of time, money, health, or
security
Table 2.1
Push and Pull Travel Motivations
Maslow's Hierarchy of Needs
• Physiological to self-actualization
– Higher order (top three) vs. lower order (bottom two)
needs
– Lower needs must be satisfied before higher needs
become important
– Lower-order needs of most consumers in advanced
economies have been met
– Travelers may seek satisfaction of any/all levels of
needs when they travel
Figure 2.2
Maslow's Hierarchy of Needs
Travel Career Patterns (TCPs)
• Explaining individual behaviors on the basis of
stages in a tourist's life cycle
• Three layers of travel needs, the core being the
most important
Figure 2.3
Travel Career Patterns (TCPs)
The Psychocentric-Allocentric Model: Plog's
Model
• Use of personality characteristics to understand
tourist travel patterns
• Continuum from psychocentrics to allocentrics
– Psychocentrics/Dependables: Tradition-bound travelers
who prefer traditionally popular locations and
experiencing commonplace activities; desire
predictability in their travels
The Psychocentric-Allocentric Model: Plog's
Model
• Continuum from psychocentrics to allocentrics
– Allocentrics/Venturers: Innovators who seek out new
locations and activities
– Most travelers are somewhere in between venturers
and dependables
Figure 2.4
Psychographic Positions of Destinations
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
– Heterogeneous market: One composed of people
having differing characteristics and needs
– Homogeneous market: One with people of similar
characteristics and needs
Approaches to Segmenting Markets
• Geographic segmentation
• Demographic segmentation
• Psychographic segmentation
• Product-related segmentation
Geographic Segmentation
• Grouping potential tourism customers based on
their location
• Oldest and simplest basis for market
segmentation
• Group by nation, region, state/province,
county/parish, city, neighborhood
• Common for tourism suppliers to market to a
limited region: Time and money involved in
traveling often a factor in travel decision making
Demographic Segmentation
• Grouping potential tourism customers based on
objective characteristics
– gender, age, ethnicity, occupation, education level,
income, household size, and family situation
• Most popular basis of segmentation
• Demographic information routinely collected and
widely available
Psychographic Segmentation
• Grouping potential tourism customers on their
lifestyle and personality
• Lifestyle is the way people live identified by their
activities, interests, and opinions (AIOs)
Table 2.3
Psychographic Lifestyle Dimensions
Product-related Segmentation
• Group potential buyers directly from what people
indicate they need or want in a particular good or
service
– The benefits people seek in the good or service
– The amount of good or service used
– The degree of company loyalty shown by the consumer
in relation to the specific good or service
Putting Segmentation Knowledge to Work
(1 of 3)
• There are almost as many potential market

segments as there are groups of people
• Most important reason for segmenting is to better
meet customer needs
(2 of 3)
• 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?
– Is the segment large enough to be potentially
profitable?
– Can the segment be reached efficiently and effectively
through advertising/promotions?
(3 of 3)
• The task of deciding when and how to segment

can be clarified by addressing the following
questions (cont’d):
– Is the segment interested in the service offered?
– Is the segment expected to be long term and will it
grow or shrink in size?
Table 2.4
The Segmentation Process
Specialized Tourist Segments
• Business and professional travelers
• Incentive travelers
• SMERFs (Social, Military, Education, Religious,
and/or Fraternal Groups)
• Mature travelers
• Special-Interest Travelers
Table 2.5
Business Traveler Profile
Table 2.6
Profile of Mature Travelers
Table 2.7
Evolution of Special-Interest Tourism
Table 2.8
Examples of Special-Interest Trips
Table 2.9
Types of Sport Tourists
Delivering High-Quality Service
• Must meet customer expectations by satisfying
their wants and needs
• Need to provide consistently high-quality service
• As market becomes more competitive, service
quality becomes more critical for success

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• There are almost as many potential market

• The task of deciding when and how to segment

• The task of deciding when and how to segment

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