Flight Centre & Segmentation

8/6/2019 Flight Centre & Segmentation

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1. Travel agency customers have varied needs and wants, and come from different walks oflife. Accordingly, in order to compete effectively in this sector, agencies must concentrate

their marketing efforts on those customers that are mostly likely to purchase from them

including by:

a) Identifying and profiling consumers who differ in their needs and preferences, andaggregating those consumers with similar needs (market segmentation);

b) Choosing which market segments to enter (market targeting); andc) For each segment, establishing and communicating the distinctive benefit of the

agencys market offering (market positioning).1

2. Flight Centre Limited (FCL) is a leading example of segmentation, targeting and positioning inthe Australian sector. FCL has more than 30 brands, including the flagship Flight Centre

brand2. It is a house of brands

3, with companys marketing activities being geared towards

developing the range of leisure and corporate brands to cater for specific customer

segments.4

3. FCL takes a demographic segmentation approach to its leisure brands:Escape Travel:

Escape Travel is FCLs second largest leisure brand, targeting middle-market consumers and

specialising in tailoring complete and affordable international and domestic holiday

packages. Shops are predominantly located in major shopping centres. Customers can

expect a professional and friendly service from the Holiday People and a diverse product

range.

5

Travel Associates

The Travel Associates businesses target experienced travellers with discerning tastes, keen

interests in exploring unique destinations specialises in luxury travel options. The boutique-

style offices are located in fashionable shopping and eatery locations. Travel Associates

team leaders are as well travelled as their customers, and the team can deliver highly

customised itineraries.6

1Marketing Management, Kotler, Keller, Burton 13

thEd, p224

2Flight Centre Limited Annual Report 0910 , p1

3See Attachment 1

4Flight Centre Limited Annual Report 2007, p10




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Student Flights :

Student Flights is FCLs targeted and niche youth and adventure brand, targeting Generation

X and Y (predominantly aged between 18 and 30 years) student travellers, adventure

seekers, independent travellers and those on working holidays. Shops are located in High

Streets, near major universities/TAFE campuses, shopping centres, transport hubs and in

high foot traffic locations. Its diverse product range includes tours and activities, music

festivals, events, sailing and contemporary cruising, overseas working holidays, teaching

opportunities and volunteering programs.7

4. FCL has positioned its various offerings so that they are distinctive in its customers minds sothere is little chance of the market being confused with the positioning or target market of

each of these brands8. Additionally, the brands websites

9have a strong affinity with their

target markets, even down to terminology used to describe the price guarantee10

, allowing

FCL to successfully integrate the online positioning with its direct retailing.11

Mostconsumers would not be aware that these brands are all owned by FCL the fact that these

are part of a house of brands, as opposed to a branded house, allows FCL to clearly

differentiate these brands from each other and their competitors brands.


8Marketing Management, Kotler, Keller, Burton 13

thEd, p288

9www.travel-associates.com.au, www.studentflights.com.au, www.escapetravel.com.au

10For example, on escapetravel.com.au the price guarantee is Dont forget, we wont be beaten on price. On

studentflights.com.au, customers are told If you find a cheaper quote, well beat it or you take a mate for

free11

Flight Centre Limited Annual Report 2007, p13


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ATTACHMENT 1 FLIGHT CENTRE LIMITEDS HOUSE OF BRANDS

LEISURE TRAVEL

CORPORATE TRAVEL

WHOLESALE

ONLINE

JOINT VENTURES

Documents

Flight Centre & Segmentation