LESSONS:
6.1 CUSTOMER DEMOGRAPHICS
6.2 THE BUSINESS TRAVELER
6.3 THE LEISURE TRAVELER
6.4 THE INTERNATIONAL TRAVELER
Goals:
Define Target MarketExplain role of demographicsDefine Business TravelerDescribe trends affecting travelersDefine Leissure TravelDescribe trends in leisure travelDescribe importance of international travel
Hotel and motels must determine whom they wish to have as their clients and study these target markets to be successful.
TARAGET MARKET
TARAGET MARKET IS:
The specific group of people that a business intends to reach for customers You must know the needs and wants of the
group You must know their preferences and specific
information about the group
Demographics:
Specific information about a target market which includes: Customers’ age Gender Marital status Income Educational Level Attitudes
Niche Marketing
Involves selling goods and services to a smaller, uniquely defined group Examples:
Business travelers Leisure travelers Sports travelers Families Senior Citizens
(most sought after group) Ethnic groups
Market Segment
Group within a larger market who share one or more characteristics Example
There are millions of country music fans but there is a smaller market segment that just likes to go to Branson, Missouri for the shows
Five Elements Of Market Segmentation
1. Geographic Segmentation: dividintg markets into physical locations such as South, Midwest, West Coast, East Coast
2. Demographic Segmentation: focuses on income, profession, gender, education level
3. Psychographics: focuses on attitudes and lifestyles-ex. fans of athletic teams, gamblers, theater goers, stock car racing
Five Elements Of Market Segmentation
4. Product Usage: customers that use a particular product or service
5. Benefits Derived: the value people attach to a product or service, such as the enjoyment they get from staying at the beachfront hotel instead of inland or the pleasure they get when eating at a restaurant instead of a fast food outlet
More Demographics
Seniors are a growing segment of hospitality market, many are retired business executives that have money
Seniors like travel and dining
They like to travel with people their own age
Seniors are made up of more women than men (4 to 1)
More Demographics
Baby Boomers: Born in the 50s and early 60s, raised in more prospereous times, use credit, huge potential market, seek expensive hospitality venues, more luxury
More Demographics
Interactive Marketing: like a high-tech Yellow page Directory
Involves putting information about local history, culture, restaurants, museums, and other attractions on the guest room television
The guest selects what ads they want to see, what they want to know about in the area
The Business Traveler
Travel to meetings, conferences, and trade shows
Often use airlinesThis type of travel
is at an all time high
Business Traveler Trends
Take about 10 trips per yearAverage stay of 4 daysOnly about 15% shopped
for travel dealsOften took spouse with
themUsually have the latest
technology with them
Traveler Trends
Health Trend: “staying healthy” is high priority, exercise areas are important, spas, recreational facilities
Dining Styles: good dining is a favorite reason to travel, also alcoholic drinks
More Female Executives: nearly 50% of business travelers are women, very few women travel with their children
Women Travelers: What they want
Responsive service from the hotel Less night travel Pay more attention to hotel security More often order room service Prefer separate vanities, make-up
mirrors Use hair dryers more Use airport shuttles more Tour cities on trip more often than
males
The Leisure Traveler
Travel taken solely for vacation or pleasure
Examples: Family vacations Weekend getaways Cruises Guided tours Ballgames
The Leisure Traveler
Adventure Travel Hard Adventure Travel: requires
physical strength and endurance for such things as whitewater rafting, snorkeling, scuba diving, off-road biking
Soft Adventure Travel: includes activities that require less rigorous exertion, such as a cruise ship tour of Alaska, birdwatching in Texas
The Leisure Traveler
Casinos Gaming industry is large and
growing Sometimes set up on boats Raise millions of tax dollars for
schools, roads, and other public works
Provides many jobs Las Vegas is the premier casino
city Have added children attractions
The Leisure Traveler
Preferences: Hotels with basic cable
and irons with ironing boards
In-room coffee makers Premium TV channels Pay-per-view TV USA Today Newspaper
Senior Travelers
Soon will be the largest target market They have greater disposable incomes They have more time to travel Half of the Baby-Boomer
generation will live to be 100 Seniors seek experiences that are
educational and are an adventure They expect high-quality facilities
and services
Alternative Leisure Lodging
Timeshares: Lodging properties owned by
multiple families and individuals
Available to each owner for one week during the year
Property taxes and interested paid on Timeshare loans are tax deductible
Partnerships allow you to trade for different locations
Incremental Revenue
Sales to new customers outside the normal distribution channel
Prime example: Internet customers on Priceline.com and Cheap Tickets which sell more than 20,000 airline tickets a day that would otherwise go unsold
International Traveler
International Travel is on the riseThe number of Americans
traveling internationally is almost 100 million
Average spending is $3,500 eachMust have passports, visas,
immunization records, international driving permits, and other documents
International Traveler
Usually stay longer Expect to pay higher prices Often want long-term
commitments from facilities for return trips
Usually expect earlier check-in and later check-out times
Appreciate special touches that make them feel at home-special meals-beverages
Research
You must learn as much as possible about your destination when planning a trip to avoid problems
Travel Agents
More than 200,000 U.S. travel agents account for almost 80% of the airline, cruise, and package tour sales
They book more than 50% of all car rentals
Types of Travel Agents
Full-Service: make money on commissions
Specialists or Destination agents: focus on travel niche such as trip to on country
Rebaters: return part of commission to traveler to give them lowest price
Fee-based: charge clients a fee
Insurance
Most think it’s a good idea Flight insurance covers death and injury Baggage and personal effect insurance
covers damage to your stuff Trip cancellation and interruption
insurance applies to charter and package tours that are canceled
Automobile insurance is a good idea if you drive a rental car outside the U.S.
Personal health and accident can cover you outside the U.S.- your regular health insurance may not be good in another country
Making Reservations
Booking reservations through an agent usually does not increase cost
Agents usually make their money from commissions
Rates vary greatly between peak and off-peak seasons
When at a hotel, the Concierges can provide personalized service, travel information, transportation, restaurant and entertainment suggestions