Consumer Influences in Travel Behavior Presented by: Yifu Fei Jonathan Gervacio Supranee George Jen Iskierski James Qing
IntroductionFormal Problem Statement: Applying group influence effectiveness to travel behavior. Examining shifts in the travel industry from individual targeting, to group targeting strategies. Emerging markets are generating greater potential for travel industry.
Applying Past Research to Travel Past travel consumption has been targeting on an individual basis. Past psychology findings indicate that individuals find comfort through others. Importance: distinctive subgroups self select on the importance of shared commitment. Our Intention: to capitalize expenditures through group dynamics through emerging market segments with great potential in the traveling industry.
Outline Traveling Behavior Global Social Economic Environment Terrorism Influences InfluencesCulture / Class / Limitations onReligion Education / International Emotions Gender Occupation Travel Travel Consumption Decision
Issues Changing Traveling Behavior Environmental Changes Shifts in the Economy Global Terrorism Social Changes
Environmental Changes Slight increases in temperature leading to shifts in vacationer numbers for every destination. More severe number of violent storms affecting the number of non-enjoyable days. Outcome: The determined traveler will continue to travel, but the destination choice will be modified.
Shifts in the Economy Higher cost of living Reduced disposable income for recreation and travel. Rising cost of fuel, being passed onto the consumers through fuel surcharges. Outcome: The distance from where the traveler is traveling from, to the destination will be closer. Causing travelers to settle for closer destinations.
Global Terrorism Not affecting the amount of people traveling as a whole. Affecting destination choices, for places deemed by the government too dangerous to travel Media worrying the public, just to sell a story. Outcome: Increased security due to terrorism, causing delays and less efficiency for travelers.
Social Changes Current travel being more individualistic. More promotion of traveling as a family. Promotion of family travel as beneficial for all members of the family. Outcome: Education and understanding of other cultures, specially by kids can be done through travel.
Family & Friend Influences in Travel Consumption Highly influential & greater conformity due to presence of trust in group members. Children playing a more active role in decision making process. Strong family ties educating children through travel creates a long term memory and positive satisfaction. Strong affiliation with friends links positive feelings with travel purchases.
Underlying Key Issues in TravelBehind the key issues which have been discussed, there are underlyingFactors, which have great impact on consumer’s traveling behaviors.Since people identify more internally with group identification, in ourresearch, we analyzed five segments: Culture / Religion Class/Education/Occupation Gender Emotion Limitation on international travel
Culture / ReligionCulture and religion have great influence on individual destination chosen.Culture: Individuals may feel more comfortable in a place where some similarities may be in language, food, and culture. Ex. Chinese travellers may prefer traveling to a location in China, or something similar (Chinatown).
Culture / Religion Religion: Religions are often the ideals in which a person liveslife. Through these ideals decisions are made in accordance of the teaching of the religion being followed. Ex. According to Islam, Muslims are to at least travel once to Mecca in their lifetime.
Class/Education/OccupationWhen associating status, image, and class on destination choices, weMust look at how our society is driven to maintain the portrayal of beinga certain class or even a higher class than in actuality. People in western societies are especially image conscious on how others view them and take the measures to try and project their ideal self with their real self. This may effect on the type of vacation, length of duration, and method of travel. Ex. Private Jet VS Grey hound $10,000 per night exclusive package VS budget traveling
Ever since the beginning of human travel, knowledge has been associated with the number and types of destinations one travels to. Ex. Traveling to Egypt to explore the pyramids of Gyza versus traveling to Atlantic City to gamble With the increase of global trading, business travel has already become a large segment of traveling markets. Since the use of low- cost carriers and better-designed planes with large capacity over this few years, it incurs a huge demand of business travel.
GenderWe take look at Gender from two aspects. With women becoming a more important part of the workforce, Women have more purchasing power, thus made their opinions more influential on either travel location choosing, or travel expenditure. Another aspect is just being noticed recently ---- gender based trips. Industry research indicates that today, 8 million gender-based group trips occur annually, and it bring $40-billion-a-year in hotel industry (Brian Harrington, 2007).
Emotions Emotions are the fuel in determining how we feel about the products that we choose to purchase Traveling is something that many people hold near and dear to their inner selves. Therefore, traveling causes an emotional attachment. Consumers think less logically about their purchase when they are emotionally attached. “Groupthink” once in a group consumer likely change their emotions and thought patters to adhere to .
Limitation on International TravelBecause of the safety issues and the globe of Terrorism expansion,most countries increase their security level. The governmentregulations regarding the safety, have great influence on internationaltravel.Ex. Due to a relative easier policy on issuing tourist Visas, the number of tourists traveling to Canada is increasing fifty times faster than the United States.
Research Findings Group Questionnaire: 2 extremes 1.) Individuals who prefer to travel alone & no identification with groups 2.) Individuals who enjoy traveling within a group and consider themselves as part of a subgroup 91% would have a better time traveling with others. Travel agencies are seeking to undertake anyone and everyone. This strategy makes it difficult to target any specific segment.
Concluding Remarks More people prefer group travel over solo, thus creating opportunity in travel market. More people = More $$$ Group travel creates a longer lasting recall of excursions due to group affiliation & sense of belongingness. Group influence will lead to less concern about price.
Recommendations for Managers Expand on student programs Create more inclusive tailored packages for segments Family travel needs to promote children as a significant segment to target. Online booking should incorporate chat rooms and message boards to seek more info. Gay / Lesbian travel segment Senior travel segment –Baby boomers
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