Hi,
So this is actually my work for Marketing Communication assignment.
"Study Case about Segmentation, Targeting, Positioning and Forecasting Holiday Business".
Regards,
Jazzy
2. 1. What base for segmentation might be appropriate in the holiday business?
Answer :
Market can be segmented in four customer characteristics:
1. Geographic
Where the consumers live, the climate, the topology, etc
2. Demographic:
Concerned with the structure of the population in terms of ages, lifestyles, economic factors
So, for this case (based on what I read on the passage) I divided the demographic into this :
a. Gender : Men and Woman
b. Age : Unlimited age.
c. Income : Class A & Class B
* Geo-Demographic
Refers to a range of methods used for classifying and characterizing neighborhoods or localities
based on the principal that residents living near each other are likely to have similar demographic,
socio-economic and lifestyle characteristics.
for example : People who lives in 4 seasons country. On summer day, people who lives in here
tend to go for a holiday to tropical country.
3. Psychographic
Classifies consumers according to their personalities. But psychographic segmentation remains
problematical because of the difficulties of measuring consumers’ psychological traits on a large
scale.
4. Behavioral
This approach examines the benefits, usage situation, extent of use and loyalty.
Normally marketers would choose the most profitable segment, but equally a firm may decide to
aim for a particular segment of the market that is currently neglected, on the grounds that
competitors are less likely to enter the market. The process of selecting a segment to aim for is
called targeting.
Demographic and geographic segmentation might be the most appropriate base in segmenting
the holiday business. The people in holiday business has segmented the market to make it easier
targeted the market. If a segment is correctly identified, it should be possible for the marketer to
meet the needs of the segment members much more effectively than their competitors can.
2. Which segments are likely to show the strongest grow within the next 10 years ?
Answer :
It’s really hard to do business projection for the next 10 years. From my point of view, where a
company wishes to forecast with reference to a particular product, it must consider the stage of
the product’s life cycle for which it is making the forecast. Forecasting the future is always difficult.
But, we can use Time Series Analysis, so this method uses the company’s past sales records to
predict what will happen in the future. Although this can be quite accurate, it does not take
account of the unexpected – a sudden entry by a competitor, a change in legislation, or a change
in the company’s fortunes through takeover or merger. Time-series forecasters usually perform
four types of analysis, they are : Trend Analysis, Cycle Analysis, Seasonal Analysis and Random
Factor Analysis to help us predict the future.
Keeping up with the latest tourism trends it’s important. Many tourist service providers have
already changed their business model in order to meet the challenges arising from all the
identified trends. Destinations, travel companies, hotel companies and other players along the
value chain will have to be constantly on their toes, tracking future developments of these trends.
It will continue to be a story of those who were prepared, those who were not, and those who
managed to adopt the change quickly enough
3. And from my point of view which segments are growing in Holiday Business, is :
1. Online Travel
2. Independent Travel
3. Solo Travel
4. Eco Travel
5. Local Experience
6. Bleisure Travel - (The concept of combining leisure and tourism with travel for business).
Sometimes a client who is travelling for work decides to engage in tourism on their downtime;
in other cases, a company may arrange for tourist activities on work trips as a perk. Another
increasingly popular set of tourism trends relate to the “digital nomad” phenomenon where
online workers engage in travel.
7. Robot, Chatbots, Automation - One of the more eye-catching examples of these particular
tourism trends is Connie, the Hilton Hotel chain’s robot concierge. Other hotels have also got
in on the robot-staff trend, installing interactive robots to handle certain reception duties or
even having them serve food and drink to visitors.
8. Healthy and organic food - Healthy food and the kind of fare consumed by tourists used to
be antonyms in the minds of many travellers, with holidays traditionally representing a chance
to break one’s diet and indulge in forbidden treats. Today’s travellers know that delicious and
nutritious are not exclusive concepts. Demand for excellent cuisine with a view to better
nutrition is driving new tourism trends.
3. Which segments are likely to shrink in the next 10 years ?
Answer :
1. Tour guide - in the technology era I don’t think that tour guide will still exist in the next 10
years. Since people tend to post everything on social media about everything. So, it will be so
easy to know about some places or historical things in the future with internet rather than
using tour guide services.
2. Conventional Travel Agency (that don’t have website / social media)
4. How might tour operators respond to the growth in the independent sector?
Answer :
The development of technology like the internet had big impacts on the travel and tourism
industry too. Customers are able to research destinations and make their own bookings online,
either through online bookers such as Traveloka and Ticket.com, or directly with providers of
accommodation, transport and support services in the destination. Travel and tourism
providers have responded to this technological development so that even small- and medium-
sized enterprises have their own websites, e-mail addresses and online booking capabilities,
including accepting online debit and credit card payments from around the world.
Recession had a big impact on the business travel environment and the number of business
travelers declined as their employers tried to introduce cheaper ways of attending meetings like
telephone and web conferencing which saved travelling time and money. Most of the business
travelers answered in the surveys and questionnaires that they are seeking for budget airlines and
accommodations which still offer them great value with the basic facilities included. Therefore
there are more flight and accommodation providers which are trying their best to compete for
business travelers. Budget airlines such as Lion Air and Air Asia have prospered in recent years.
They have tapped into a variety of changes, such as increased internet booking and the
consequent growth in self-packaging, the related trend of more independent travel.
4. 5. How might a holiday marketer track people who apparently shift from one segment to
another?
Answer :
The first thing that can affect a segmentation model is changing customer needs. Customer
needs can change over time, and one reason for these changes can be a shift driven by adoption.
Segmentation can also shift when customers in the customer chain change their roles and take on
new responsibilities. First, a changing market requires flexibility. Customer needs can change in
an instant—or, rather, the prevailing customer trends can change as adoption evolves—so you
need to be flexible to stay on top and respond. Second, it is necessary to monitor your needs-
segmentation and adjust for new entrants/evolving roles in real time. With the right flexibility, it is
possible to evolve your customer segmentation in tandem with a rapidly maturing market, to
better serve customers, and reach a win-win outcome.