tourism market segmentation in context of nepal
TRANSCRIPT
TOURISM MARKET SEGMENTATION IN CONTEXT OF NEPAL
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OUR TEAM
Jivan NepaliIOE, Pulchowk
Campus
June 18, 2013
Narayan Pd. KandelIOE, Pulchowk Campus
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TOURISM Huge possibility of Employment
Generation
Covers 4.3% of National GDP
(2012)
So, if we can effectively market the tourism industry in Nepal & abroad?
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TOURISM MARKET SEGMENTATION
SegmentationSmall group bearing similar behavior characteristicsMarket Segments & Target MarketMeans of implementing marketing strategy
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WHY MARKET SEGMENTATION IN TOURISM
Natural Resources?
Cultural Resources?
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WHY MARKET SEGMENTATION IN TOURISM
“focus resources on the customers who are most likely to be persuaded to visit their destination or to purchase their product or service”
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DATA TO BE SEGMENTED
Tourist Details Records (TDRs)Demographic characteristics along with
purpose of visit total duration stay tentative places of visit
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SEGMENTATION APPROACHES
A-priori Segmentation
Data-driven Segmentation
“Study shows Older People Travel More & Go Farther” - Journal of Travel Research
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BASIS FOR SEGMENTATION
GeographicDemographicPsychographic/Life-styleBenefits
UsageLoyaltySituationBehavioral
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BUILDING SEGMENTATION MODEL
Step 1: Selection of the Segmentation Base(e.g. Travel Motivations, Vacation Activities)Step 2: Grouping of respondents
Step 2(a): Selection of segmentation algorithms(s)
Step 2(b): Stability Analysis Step 2(c): Computation of final
segmentation solution10
BUILDING SEGMENTATION MODEL
Step 3: Profiling (external validation) of segments by identifying in which personal characteristics segments differ significantlyStep 4: Managerial assessments of the usefulness of the market segments (and formulation of targeted market activities)
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SEGMENTATION RESULTSPurpose of Visit
Data Source: Nepal Tourism Statistics Report-201012
SEGMENTATION RESULTS Travel Partners
Data Source: Nepal Tourism Statistics Report-2010
2009
2010
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SEGMENTATION RESULTSCountry of Origin
Data Source: Nepal Tourism Statistics Report-2010 14
SEGMENTATION RESULTSSatisfaction Level
Data Source: Nepal Tourism Statistics Report-201015
References[1] Hanlan J., Fuller D., Wilde S. J. (2006). “Segmenting tourism markets: a critical review”. Southern Cross University, Melbourne, Australia.[2] Barahi S., Fan R., Hung P., Malla P., Yeung R. (2011). “Tourism Cluster in Nepal - Microeconomics of Competitiveness”. Harvard Business School, USA.[3] Angus C., Brocklesby J. (2010). “Tapping the Domestic Tourism Market”. Angus & Associates, Tourism Resource Consultants and The Knowledge Warehouse, Ministry of Tourism, New Zealand.[4] Khatri, L., B., Kayastha R., P. (2010). “Nepal Tourism Statistics 2010- Provisional Report”. Ministry of Tourism & Civil Aviation, Government of Nepal, Singh Durbar, Kathmandu.[5] Khatri, L., B., Kayastha R., P., Pokhrel M., P., K.C., J. (2011). “Nepal Tourism Statistics 2011- Annual Statistical Report”. Ministry of Tourism & Civil Aviation, Government of Nepal, Singh Durbar, Kathmandu.
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Thank You!
Questions & Answers Session