Business Tourism - The Traveling Public

Tourists: The Traveling Public
Chapter 2

In the first chapter, we talk about model highlighting the scope and complexity of the tourism industry and that you actually realize that the center is the focal point and primary season for all tourism is travelers. Here we will learn more about these travelers and how we can plan to meet their wants and needs successfully. To know that we need to find out who they are, why they travel, and what they expect during the travels.
Nowadays, the travels have a lot of needs and these needs bring us to a lot of activity too. In respond to the task of understanding consumers, their needs, and the actions they take to satisfy these needs, a whole branch of marketing and consumer behavior has developed.
Consumer behavior is the study of consumer characteristic and the processes involved when individuals or groups select, purchase, and use goods and services to satisfy wants and needs.
So here we will learn about: Foundation for Understanding Tourist, Segmenting the tourism market, and specialized tourist segments.

FOUNDATION FOR UNDERSTANDING TOURIST
          In this section we will learn to consider what psychological reasons compel individual travel. Psychologists have long studied motivations for a variety of human behaviors including the drive to travel. Here we will discuss 3 of the most accepted theory for tourist motivations:
a.Maslow’s Hierarchy of Needs
This theory made by Abraham Maslow that provided a good general framework for describe human needs in  his classic model depicting the hierarchy of needs. Maslow further grouped these needs into two broader categories : lower order and higher order needs. Lower order need to be full fill first before we can jump to the next higher order needs, this is the model of Maslow’s Hierarchy of Needs :




b. The Leisure Ladder Model:
           
This model developed by Pearce and this model is similar to Maslow’s hierarchy of needs, but it further by providing more detailed insights into specific tourist behavior.



 c. The Pyschocentric-Allocentric Model:
Theory that divide, people into 2 type in general that are:
Psychocentrics
Allocentrics
Prefer familiar travel destinations
Prefer non “Touristy” destinations
Like commonplace activities at destinations
Enjoy discovering new destinations before others have visited them
Prefer relaxing sun-and-fun spots
Prefer unusual destinations
Prefer low activity levels
Prefer high activity level
Prefer driving to destinations
Prefer flying to destinations
Prefer heavy tourist accommodations, such as hotel development, family-style restaurants, and souvenir shops.
Prefer services such as adequate to good accommodations and food and few developed tourist attractions
Prefer familiar rather than foreign atmospheres
Enjoy interacting with people from different cultures
Prefer Purchasing complete tour packages featuring a full schedule of activities
Prefer tour arrangement that include basics (transportation and accommodations) and allow for considerable flexibility.

SEGMENTING THE TOURISM MARKET
Common approaches (called “bases”) to segmenting market can be achieved by grouping customers according to the following variables:
Geographic Segmentation
            Geographic segmentation is the oldest and the simplest basis for market segmentation. Even though people in the same geographic location do not usually have similar wants and needs, their location sometimes has an important impact on their selection of tourism goods and services. Commonly used geographic segmentation variables include nations, regions, state/provinces, cities, and even neighborhoods.


Demographic Segmentation
Demographic segmentation is the basis most commonly used for market segmentation. Using this approach, consumer are grouped according to variables such as gender, age, ethnicity, occupation, education level, income, household size, and family situation.
Psychographic Segmentation
          Psychographic Segmentation involves grouping people on how they live, their priorities and their interest. Put all this together and we will have description of a person’s lifestyle and personality. Psychographic segmentations had been used by cruise lines and resorts to target individuals with similar hobbies, sports, and musical interest.

Product-Related Segmentation
          On the 3 segmentation before, the marketers make group them base on their characteristic. The marketers assume all of that is related to their needs and wants. Since assumptions can sometimes get us into trouble the marketers often try to segment less indirectly and more directly, they segment their target from 3 parts:
1.      The benefits people seek in the good or services (for example, the ability to guarantee the availability of a room at a hotel)
2.      The amount of good or services used (light users such as occasional leisure travelers versus heavy users such as business travelers)
3.      The degree of company loyalty shown by the consumer in relation to the specific good or service (participation in frequent-user programs)

SPECIALIZED TOURIST SEGMENTS
There are five large and specific segments of tourism consumer that are business and professional travelers, incentive travelers, mature travelers, international travelers, and single travelers.

Business and Professional Travelers
          Business travel is considered to be one of the most important in the tourism industry because business people are often required to travel as part of their day-to-day activities. Since travel is part of their job, the amount of money they spend on tourism services tends to stay fairly constant and they are not as price-sensitive as vacation and leisure travelers. Professional travelers are similar to business travelers, they are more satisfied by meeting and convention facilities.
          The Marriott Company provides good example of how to further segment the business and professional travel market successfully. The first is the full service Marriott Hotel that is targeted to the business traveler who wants all the facilities needed while on business trip. The second, Courtyard by Marriott, targeted to the business traveler who wants the basics of a business hotel but does not have the budget to pay the extras not used. The third concept is Fairfield Inn that is targeted for the traveler who is simply looking for a clean, comfortable room for the nights without the extras.

Incentive Travelers
          One of the faster-growing segments of the tourism industry is incentive travelers which generates over 11 million trips annually worldwide. Incentive programs are designed to create competition with the winner receiving many different type awards including complete holiday get-away packages. All aspects of incentive travel are structured so that everything is first class filled with pleasant surprises, and arranged so that participants never have to pay for anything.

Mature Travelers
          Another large and growing segment of tourism consumers is mature travelers. The United Nations estimates that the number of senior citizens in the year 2025 will be 1.1 billion worldwide, almost double the number in 2000. The mature traveler market segment is especially important since they spend 30% more than younger travelers and account for 80% of all commercial vacation travel. Mature travelers most likely take cruise vacation, long trip vacation usually more than 5 nights and most likely to purchase package tours.

International Travelers
          International travelers are a large and growing segment of tourism consumer. There are 4.52 million international travelers that come to Bali during January-July 2017. The largest number of visitors to Bali come from China and Australia. There are 896.000 Chinese travelers that visit Bali during January-July 2017, they are interested by the cultural of Bali. The second majority of international travelers that visit Bali come from Australia. There are 632.000 Australian travelers that visit Bali during January-July 2017, one of the reasons is probably the flight ticked to Bali is cheaper than the flight tickets from one city to another city in Australia.

Single Travelers
           A single traveler is defined by the Travel Industry Association of America by person who lives alone and travels with or without companions. This represents 22% of all travelers. A number of social trends has led to an increase of the single traveler segment. Traveling alone can be extra costly. Most tours, all-inclusive resorts and cruise lines charge a single supplement that ranges from additional 25% to 100% more than the per person price a couple would pay. The internet is now making it possible to for a single traveler to find a roommates so they can avoid the single supplement premium and meet new friends.

DELIVERING HIGH-QUALITY SERVICE

          Simply identifying and attracting targeted customers is not enough. Tourism or organization must then meet customer expectations by satisfying their wants and needs. Providing consistently high quality service is the key to establishing and maintaining a successful operation. Travelers now expect superior service, and delivering superior service requires understanding travelers’ wants and needs.
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