Marketing Research in Travel & Tourism

Marketing Research in Travel Marketing Research in Travel and Tourism (Middleton et. and Tourism (Middleton et. al. 2009)al. 2009)Prepared by: Blesilda B. Gonzales

Marketing Marketing ResearchResearch

Is used in its broad sense of embracing all forms of research-based all forms of research-based informationinformation used in making marketing decisions, including consumer research, database analysis and marketing information system (MIS).

“the lower the quality (or absence) of information

used for marketing decisions, the higher the

risks of marketing failures, especially in strongly competitive

markets”

Research category

Used in/for Typical research content and methods

1. Market Analysis & forecasting

Marketing planning Measurement & projections of market volumes, shares & revenue by relevant categories of market segments and product type

2. Consumer research

Segmentation, branding & positioning

a. Quantitative measurement of consumer profiles, awareness attitudes and purchasing behaviours including consumer audits

b. Qualitative assessments of consumer needs, perceptions and aspirations

3. Products & Price Studies

Product formulation, presentation, pricing & market assessment

Measurement & consumer testing of amended & new product formulation, and price sensitivity studies.

Six main categories of marketing Six main categories of marketing research and their usesresearch and their uses

Research category

Used in/for Typical research content and methods

4. Promotion & Sales Research

Efficiency of communications

Measurement of consumer reaction to alternative advertising concepts & media usage; response to forms of sales promotion, & sales-force effectiveness. Measurement of website responses

5. Distribution research

Efficiency of distribution network/channels

Distributor awareness of products, stocking and display of brochures, & effectiveness of merchandizing, including retail audits & occupancy studies, analysis of website usage & of call centers

6. Evaluation & performance monitoring studies

Overall control of marketing results & product quality control

Measurement of customer satisfaction overall & by product elements, including measurement through marketing tests & experiments & use of mystery shoppers

Six main categories of marketing research and Six main categories of marketing research and their usestheir uses

NINE TYPES OF MARKETING NINE TYPES OF MARKETING RESEARCH COMMONLY USED IN RESEARCH COMMONLY USED IN

TRAVEL & TOURISMTRAVEL & TOURISM1. Continuous2. Ad hoc3. Quantitative4. Qualitative5. Primary6. Secondary7. Omnibus8. Syndicated9. Occupancy Studies


TRAVEL & TOURISMTRAVEL & TOURISMContinuous Continuous

◦ Commercial organizations Commercial organizations have to measure key have to measure key trend data on a regular or trend data on a regular or ‘continuous’ basis.‘continuous’ basis.

◦ Continuous information is Continuous information is increasingly incorporated increasingly incorporated into databases that into databases that provide a fertile source of provide a fertile source of information for user information for user satisfaction & for satisfaction & for marketing-mix decisions.marketing-mix decisions.

Continuous means:Continuous means:◦ Daily, weekly, or Daily, weekly, or

monthlymonthlyData covering Data covering

enquires:enquires:◦ Sales, Sales, ◦ booking types & booking types &

patterns, patterns, ◦ market shares, market shares, ◦ customer satisfaction, &customer satisfaction, &◦ Seat or hotel bed Seat or hotel bed

occupancyoccupancy


TRAVEL & TOURISMTRAVEL & TOURISMAd hoc Ad hoc

◦ Specific problems in Specific problems in marketing that marketing that require research require research relevant to a relevant to a particular particular circumstance.circumstance.

◦ To inform such To inform such management management decisions a specific or decisions a specific or ad hoc investigation ad hoc investigation would be needed.would be needed.

Examples:Examples:◦ Could a redesigned Could a redesigned

guidebook for a visitor guidebook for a visitor attraction with a print attraction with a print life of 3 years, produce life of 3 years, produce extra sales revenue?extra sales revenue?

◦ Would the introduction Would the introduction of a buffet-style of a buffet-style instead of full-service instead of full-service breakfast reduce breakfast reduce customer satisfaction customer satisfaction or increase it?or increase it?


TRAVEL & TOURISMTRAVEL & TOURISMQuantitative Quantitative

◦ Studies from which Studies from which numerical estimates numerical estimates can be estimated.can be estimated.

◦ Always based on Always based on ‘structured’ ‘structured’ questionnaires in questionnaires in which every which every respondent is asked respondent is asked the same questions.the same questions.

ExampleExample A coach tour operator will be A coach tour operator will be

aware from national surveys aware from national surveys that some 60% of adults take that some 60% of adults take a long holiday in a given yeara long holiday in a given year

Of whom a 3Of whom a 3rdrd part travelled part travelled abroad, stayed an average of abroad, stayed an average of 10 nights away from home & 10 nights away from home & spent $600 per person.spent $600 per person.

The operator would need to The operator would need to know what proportion used know what proportion used coaches and cars, how that coaches and cars, how that proportion varied from year proportion varied from year to year…to year…


TRAVEL & TOURISMTRAVEL & TOURISMQualitativeQualitative

◦ Commence from the Commence from the standpoint that there standpoint that there are consumer (or staff) are consumer (or staff) attitudes & motivations attitudes & motivations to be explored for to be explored for which the answers which the answers cannot be predicted.cannot be predicted.

◦ Essential for larger Essential for larger companies to companies to understand and understand and communicate communicate positioning and positioning and branding values .branding values .

Most quali. studies commence Most quali. studies commence with exploratory or open-ended with exploratory or open-ended research in which small samples research in which small samples of carefully targeted individuals of carefully targeted individuals are asked to express their views.are asked to express their views.

Examples:Examples: How customers feel about Brand How customers feel about Brand

A compared with Brand B; A compared with Brand B; What attributes and values are What attributes and values are

perceived as adhering to Brand perceived as adhering to Brand A and not Brand B;A and not Brand B;

What sort of people are thought What sort of people are thought most likely to buy Brand A rather most likely to buy Brand A rather than B; and so on.than B; and so on.


TRAVEL & TOURISMTRAVEL & TOURISMPrimaryPrimary

◦ Covering both Covering both quantitative & quantitative & qualitative data, is the qualitative data, is the label applied to label applied to marketing research that marketing research that is specifically is specifically commissioned by a commissioned by a business to contribute business to contribute to its decisions.to its decisions.

◦ It requires the gathering It requires the gathering of data not available of data not available from any other from any other (secondary) source.(secondary) source.

Example:Example: A survey commissioned by A survey commissioned by

one airline to study the one airline to study the current attitudes of business current attitudes of business travelers towards its own travelers towards its own and other airlines competing and other airlines competing on the same route. on the same route.


TRAVEL & TOURISMTRAVEL & TOURISMSecondarySecondary

◦ Are information Are information gathered originally gathered originally for a purpose not for a purpose not related to the needs related to the needs of a particular of a particular business, but which business, but which may be used by it as a may be used by it as a part of its market part of its market information system.information system.

Example:Example: All published sources All published sources

including including Internet usage data, Internet usage data, government statistics, government statistics, trade association surveys trade association surveys

and and commercial publishers’ commercial publishers’

market surveys.market surveys.


TRAVEL & TOURISMTRAVEL & TOURISMOmnibusOmnibus◦ Large market research Large market research

companies operate their companies operate their own regular (continuous) own regular (continuous) sample surveys and sell sample surveys and sell space in them to a range space in them to a range of customers.of customers.

◦ Known technically as Known technically as ‘omnibus’ surveys ‘omnibus’ surveys because they are because they are potentially open to all potentially open to all users.users.

◦ Data is cross-tabulated by the Data is cross-tabulated by the usual range of socio-usual range of socio-demographic profile datademographic profile data

Example:Example: UKTS (United Kingdom Tourism UKTS (United Kingdom Tourism

Survey) is a national consumer Survey) is a national consumer survey designed to measure the: survey designed to measure the:

Volume (visits and nights spent)Volume (visits and nights spent) Expenditure on visits and the Expenditure on visits and the

main characteristics main characteristics (accommodation, transport mode (accommodation, transport mode and areas and type of and areas and type of destinations visited) of tourism destinations visited) of tourism visits taken by UK residentsvisits taken by UK residents

Visits away from home lasting Visits away from home lasting one night for the purpose of one night for the purpose of holidays, visit to friends & holidays, visit to friends & relatives, business and relatives, business and conferencesconferences


TRAVEL & TOURISMTRAVEL & TOURISMSyndicatedSyndicated

◦ Are usually Are usually commissioned by a commissioned by a group of clients on a group of clients on a cost-sharing basis.cost-sharing basis.

◦ Members not only share Members not only share costs and receive details costs and receive details for their own attraction; for their own attraction; they also gain access to they also gain access to relevant comparisons relevant comparisons with competitor sectors with competitor sectors in the context of overall in the context of overall trends in the attractions trends in the attractions market. market.

Example:Example: The regular survey of a The regular survey of a

customer value for money customer value for money and satisfaction, co-and satisfaction, co-ordinated for its members by ordinated for its members by the Association of Leading the Association of Leading Visitor Attractions (ALVA) in Visitor Attractions (ALVA) in the UK since the late 1990s.the UK since the late 1990s.


TRAVEL & TOURISMTRAVEL & TOURISMOccupancy studiesOccupancy studies

◦ A common solution for A common solution for inability of key trend inability of key trend information is to recruit a information is to recruit a small but representative small but representative sample of businesses in a sample of businesses in a sector such as hotels.sector such as hotels.

◦ These data can be These data can be analyzed to provide a rich analyzed to provide a rich source of data for source of data for marketing planning marketing planning purposes that can be purposes that can be measured on a weekly, measured on a weekly, monthly or quarterly monthly or quarterly basis.basis.

Example:Example: Hotels are asked to maintain Hotels are asked to maintain

daily records for example:daily records for example: Arrivals and departuresArrivals and departures Rates paid by the main Rates paid by the main

segments of the market they segments of the market they deal with.deal with.

Assignment!Assignment!Read the Mini Case 9.1 entitled

THE BALEARICS TOURISM SECTOR SURVEY (2004) pages 170-171 in the book entitled MARKETING IN TRAVEL & TOURISM by Middleton et. al.

Documents

Marketing Research in Travel & Tourism