STATISTICS – Helping Malta make better decisionsThe Westin Dragonara, St Julian’s, 12th September 2017

CONVERTING NUMBERS INTO TRAVEL STYLES

How the MTA uses segments to better understand customer needs and allocate

marketing budgets effectivelymarketing budgets effectively

✖The purpose of market segmentation is to p p gdistinguish, in a diverse market, a number of

homogeneous groups of travellers having similar travel styles, motivations, needs andsimilar travel styles, motivations, needs and

preferences.

✖This enables MTA’s marketing team to✖This enables MTA s marketing team to target the identified segments with the same

product mix to trigger responses to a particular set of marketing variablesparticular set of marketing variables.

Criteria adopted for market segmentation

Measurable Accessible Sizeable

Differential Durable

2016

1,96 Million2016

1,96 MillionTotal Inbound Tourists

14,96 million14,96 millionTotal guest nights

1 71 billion1.71 billionTourist Expenditure

Top 10 Travel Styles for Malta in 2016

Sun & Culture seekers 48.0%

Sun seekers 15.5%

VFR 9.4%

Culture seekers 8.6%

Business 7.0%

Special occasion 6.6%p

Wellness 5.5%

Scuba diving 5.2%g

TEFL 3.9%

Other sports 3.0%

Motivational Segment Travel Styles

2016 Sun seekers Culture seekers Scuba divers

Size 305,00015.5%

169,0008.6%

102,0005.2%

Profile49 yrsEmployed full-timeTertiary education

61 yrsRetiredTertiary education

42 yrsEmployed full-timeTertiary education

Preferred travelseason July to September

October to DecemberApril to June July to September

Destinationchoice influencers

1. Digital media2. Recommendation3. Tour operators

1. Recommendation2. Tour operator3. Digital media

1. Digital media2. Recommendation3. Tour operators

Behaviour1. Swimming2. Dining3. Visit historical sites

1. Visit historical sites2. Visit churches3. Visit temples

1. Scuba diving2. Swimming3. Dining

Expenditure and Length of stay

€ 1,067 per capita8.0 nights

€ 1,138per capita6.7 nights

€ 1,219 per capita8.9 nights

Travel Styles by Source Market

2016 UK Italy Germany Spain

Sun &Sun & Culture 54.1% 34.1% 50.1% 27.9%

Sun 15 8% 19 7% 11 8% 7 5%seeker 15.8% 19.7% 11.8% 7.5%

VFR 13.5% 11.9% 8.3% 13.4%

Culture seeker 5.8% 10.8% 10.5% 14.0%

S bScuba diving 3.5% 4.3% 5.8% 10.8%

✖Allocation of funds by source market✖Allocation of funds by source market

✖Allocation of funds by motivational segment

✖Prioritisation of marketing initiatives✖Prioritisation of marketing initiatives

✖Prioritisation of product development initiatives

Evidence-based decision making

Methodology

NSO Tourism Statistics2016

NSO Tourism Statistics

MTA Traveller Survey-Voluntary, postal survey-Distributed at the MIA

Sample size:

6,000-Targeting incoming flights

covering 80% of incoming tourists

Conclusion

Considering the travel market is far too large and di h ff i l h Adiverse to reach effectively, the MTA uses

segmentation to better understand customer needs and allocate marketing funds effectively.

Effective segmentation is based on extensive quantitative research focusing on large numbers of

people and grouping them together based-upon h d h i ishared characteristics.

Thanks for your attention!You can find me at:

tania.sultana@visitmalta.com@