chapter 14 purposes of travel

The Tourism System 6th edition Kendall Hunt Publishing Company

Chapter 14 Purposes of Travel

Robert C Mill and Alastair M Morrison © 2013 1

© 2013 1

PART 4

Part 1. Destination: Planning, Developing, and Controlling

Tourism An identification of the procedures that destination areas follow to set policies,

plan, control, develop, and cater to tourism, with an emphasis on sustainable

tourism development.

Part 2. Marketing:

Strategy, Planning, Promotion, and Distribution

An examination of the process by which destination areas and tourism businesses market services and facilities to potential

customers with an emphasis on the effective use of promotion and distribution channels.

Part 3. Demand: The Factors Influencing the Market

A consumer behavior approach to market demand emphasizing the internal and

external influences on travelers including needs, motivation, and perception, the alternatives to travel, the marketing by tourism organizations, and the process

by which travelers make buying decisions.

Part 4. Travel: The Characteristics of Travel

A description of major travel segments,

travel flows, and modes of transportation used.

TRAVEL

Photo by Jose Manuel

Chapter 14

Purposes of Travel

© 2013 Castle of Almourol, Portugal, Photo by Jose Manuel




© 2013 Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo

Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa

Contents Explores the many segments of the

travel market. Divides the market into two main

parts: leisure/pleasure and business.



Purpose Readers will be able to demonstrate their knowledge of tourists by suggesting appropriate vacations, packages, services, and messages to the major segments of the market.






Learning Objectives: Leisure Markets Describe the characteristics of the

major segments of the travel market. Suggest appropriate vacations,

packages, and services to individual segments of the travel market.

Suggest appropriate messages to engage individual segments of the travel market.



Traditional Segments of The Travel Market

Note: Pleasure/personal = leisure travel






Leisure Travel Market Segments Friends and Relatives: Non-active visitor:

Look for familiar surroundings Do not participate in any activity

Friends and Relatives: Active city visitor: Also look for familiar surroundings More inclined to shop, sightsee, etc.

Family Sightseers: Look for new vacations places to

enrich and entertain their children



Leisure Travel Market Segments Outdoor Vacationers: Want clean air, rest

and quiet, beautiful scenery, recreation facilities, facilities for children.

Resort Vacationers: Want outdoor sports, good weather, and a big city atmosphere.

Foreign Vacationers: Seek new destinations; want an exciting and enriching atmosphere with beautiful scenery; good accommodations and service more important than cost.






Leisure Travel Types: U.S. Domestic Travel VFR Weekend getaway General vacation Niche markets Ideal American vacation trip

Leisure Travel Activities: U.S. Domestic Travel Visiting relatives Shopping Visiting friends Rural sightseeing Beaches



Niche Leisure Markets Gen Xers and Millennials Travelers with disabilities Girlfriend getaways Mancations Destination weddings Procreation vacations Babymoons Medical/life enhancement travel Voluntourism Pet travel Space travel Culinary travel Gay/lesbian market Adventure travelers






Ideal American Vacation Trip (Cook, Burnett, Hopkins, and Loeb, 2007) Rest and relaxation Spending time with one’s spouse,

partner, or family Exploration and discovery Luxury Adventure Socialization



The Family Market The interests of children are important

when planning a vacation. Freedom and flexibility is reduced when

traveling with children. Why vacation with the family?

Spend time as a family Get away from the stress of home

and work Find rest and relaxation






The Family Market Husbands/wives without children Husbands /wives with children Grandparents with grandchildren Single parents with children

Now also “multigenerational” travel;

grandparents, mothers/fathers, and children



Group Tours Package tours were a major force in

the expansion of mass tourism in the past 60 years.

However, some argue that package travel has been declining due to greater preference for individualized and independent travel experiences, particularly in the U.S.

Group and package tours still remain of great importance in other countries.






The Gaming Market In the U.S., the West is the biggest

gambling destination (especially Nevada)

Gamblers are generally: Older Single with no children in the

household Less educated than non-gamblers

Types of casino locations: Transient Destination



The U.S. Gaming Market (AGA, December 31, 2011)

Type of Casino States with (#)

Total # by type

Land-based or riverboat casinos

15 445

Tribal casinos 29 459

Racetrack casinos

13 47

Card rooms 5 517

Electronic gaming devices

6 11,091

Note: There were 38 states with at least one of these types of casinos.






Gross Gaming Revenues in Macao (DSEC, January 2013)

Year Gross Gaming Revenues (in MOP millions)

2002 23,496.0

2003 30,315.1

2004 43,510.9

2005 47,133.7

2006 57,521.3

2007 83,846.8

2008 109,826.3

2009 120,383.0

2010 189,587.8

2011 269,058.3

2012 305,234.9

Note: 1 USD = 7.99 MOP, Jan. 22, 2013

Macao’s gaming revenues are greater than those of Las Vegas



The Senior Travel Market As people age, they tend to attempt

to maintain past behavior patterns Sub-segments of the market:

The Escape and Learn Group The Retirees Active Storytellers

Seniors will become an increasingly important travel market






Senior Travel Motivators Primary motivators for travel:

Needing to change routines Seeing new things Visiting friends and relatives Meeting new people and

experiencing new cultures Expand knowledge Creating memories



Concerns of Senior Travel Market Senior concerns:

Single supplement penalty Health/mobility constraints The fear of falling ill Uncertainty about political

conditions Quality and quantity of information The pace of itineraries Language Packing and unpacking Meals Concerns about transportation






Minority Travel Patterns Largest minority groups (U.S): African-Americans:

More likely to travel for business

Frequently visit southern states and the Caribbean

Hispanics Travel with children More likely to take long trips

and travel by plane Tend to travel in the

southwest of the U.S., and to Latin America

Asian-Americans

More likely to travel by rental car

Frequently travel alone Biggest spenders of the three

groups California, Nevada, Hawaii, and

Far East are the most popular



The Cruise Market Segments (CLIA) Market segments: Enthusiastic Baby Boomers Restless Baby Boomers Luxury Seekers Consummate Shoppers Explorers Ship Buffs






Trips by Canadians in Canada, by province and territory

(Person-trips (destination))

2006 2007 2008 2009 2010

Person-trips (destination)

thousands

Canada 207,470 214,559 214,498 227,121 229,158

Newfoundland and Labrador 3,068 2,939 3,006 3,256 3,500

Prince Edward Island 1,018 1,057 1,082 1,196 1,091

Nova Scotia 7,318 7,087 7,131 7,604 8,115

New Brunswick 5,254 5,349 4,937 5,358 5,458

Quebec 57,278 57,240 58,410 62,736 60,169

Ontario 83,036 86,903 84,995 88,412 90,174

Manitoba 7,275 7,294 7,109 7,935 7,984

Saskatchewan 7,874 8,164 8,028 8,464 8,624

Alberta 17,364 20,052 20,601 20,398 21,558

British Columbia 17,908 18,418 19,126 21,619 22,380

Yukon/Northwest Territories/Nunavut 77E 56E 74E 144E F E : use with caution.

F : too unreliable to be published.

Notes:

Estimates are based on the 2001 Census population counts.

Includes same day and overnight trips.

Same day trip: distance 40 km or more one-way.

Source: Statistics Canada, CANSIM, table 426-0013.

Last modified: 2011-09-16.



Learning Objectives: Business Markets Describe the characteristics of the




http://www5.statcan.gc.ca/cansim/search-recherche?lang=eng&searchTypeByValue=1&pattern=426-0013&p2=37








The Business Travel Market The “bread-and-butter” market for

tourism. Can be categorized: Regular business travel Business travel related to

meetings, conventions, and congresses

Incentive travel



Regular Business Travel Business travelers most likely to be

male, Baby Boomers, and have high-speed Internet connections.

Recent trend: the pleasure-business trip Business travelers bringing

spouses, children, friends, etc. Purchase more services

destinations than leisure travelers.






The Frequent Flyer Frequent flyer programs:

Recently have become less appealing, rewards fewer

Companies are seeking to have the reward given to them, not the traveler

Business flyers very constrained by time They value leg room, schedules, and

seat comfort At the destination, they value

comfortable bedding above all



Technology and Business Travel The majority of business travelers now

use the Internet for flight information, though not for reservations.

Teleconferences, webcasting, videoconferencing reduce the need for travel.

Some companies have systems that allow employees to make travel plans with their own laptops, but within corporate policy.






Business Traveler on the Ground Business travelers are easily

segmentable. Many hotels have taken to allocating

whole floors or wings for business travelers who desire more luxury. Hotels add a surcharge, which has been quite successful.

Airlines have added executive luxury lounges in airports where business travelers can relax.



Types of Business Travelers Frequent business travelers Women business travelers Luxury business travelers International business traveler

Typically a married male over 45 years old, in a director-level position at a small company

Occupational designations






Female Business Travelers Are generally married, over 40, with no

children Not members of the hotel’s frequent

guest program Do not book online Eat away from the hotel when with

others and at the hotel when alone, though they prefer room service to eating alone in the hotel restaurant

Often incorporate leisure time into trip Value good service, good hotel location,

affordable rates, and convenience



International Business Travelers Techno-savvy, generally owns and

brings a laptop computer Values in-room high-speed

internet access at the hotel Prefers making calls and

watching videos on the plane Prefer to make travel arrangements

through an agent, a printed flight guide, or through a secretary






The Future of the Business Market Economic factors

Rate of the growth of the economy affects the level of business travel

Travel moves ahead of the rate of growth of the economy during times of economic stability

Exchange rates Strong signs for business travel

Strong trade, investment, and output growth

Weak signs for business travel High interest rates and

unemployment levels



The Future of the Business Market Regulation: Deregulation of travel Government policy regarding the

treatment of business travel expenses for tax purposes

1978 – U.S. airline deregulation Appearance (and disappearance) of

many new airlines Lower ticket prices

Business travel is a business expense Tax deductibility of business meals

has defined how clients entertained






The Future of the Business Market Automation can increase or limit travel Online information, booking, and

purchasing encourage travel Picture phones, videoconferencing

take the place of travel Many business travelers combine

business with pleasure They participate in tourist activities

as well as business activities After their business is concluded,

they may return at a later time as a leisure traveler



Learning Objectives: MICE Markets Describe the characteristics of the









Conventions and Congresses Services considered important to

planners: No-smoking rooms, concierge, 24-

hour room service, gift shop Adequate meeting facilities are a must Predictions:

Second-tier cities will compete with first-tier cities for their business

Meeting planning cycles will continue to shorten

Planners will block fewer rooms



Conventions and Congresses The majority of all conventions are held

in downtown hotels Planners are looking to more

sophisticated means of using technology Baby Boomers want:

Fewer weekend meetings, the opportunity to include the family, and a greater emphasis on learning

Convention locations generally change from year to year

Corporate meetings need privacy more than recreational facilities and sightseeing opportunities






Incentive Travel As standards of living have increased,

incentives like cash and merchandise are no longer as appealing

For salespeople, travel is now the #1 incentive

Group travel is a very effective incentive



Incentive Travel People who “buy” incentive trip

destinations look for: Budget Time of year Participant background Incentive history Accessibility Facilities Activities




THE TOURISM SYSTEM

© 2013

Chapter 14

Dolphins, Azores, Photo by Norberto Diver

Chapter Summary Highlights

Leisure travel and business travel are very different and each has several component segments.

A review of the major segments of tourism markets is key to getting the big picture of why people travel.

Understanding the profiles of these segments gives an indication of how to appeal to the various markets.