Consumer Influences in Consumer Influences in Travel BehaviorTravel Behavior

Presented by: Presented by:

Yifu FeiYifu Fei

Jonathan GervacioJonathan Gervacio

Supranee GeorgeSupranee George

Jen IskierskiJen Iskierski

James QingJames Qing

IntroductionIntroduction

Formal Problem Statement:Formal Problem Statement: Applying group influence effectiveness to travel Applying group influence effectiveness to travel

behavior.behavior.

Examining shifts in the travel industry from individual Examining shifts in the travel industry from individual targeting, to group targeting strategies.targeting, to group targeting strategies.

Emerging markets are generating greater potential for Emerging markets are generating greater potential for travel industry.travel industry.

Applying Past Research to TravelApplying Past Research to Travel

Past travel consumption has been targeting on an Past travel consumption has been targeting on an individual basis.individual basis.

Past psychology findings indicate that individuals find Past psychology findings indicate that individuals find comfort through others.comfort through others.

Importance:Importance: distinctive subgroups self select on the distinctive subgroups self select on the importance of shared commitment.importance of shared commitment.

Our IntentionOur Intention: to capitalize expenditures through group : to capitalize expenditures through group dynamics through emerging market segments with great dynamics through emerging market segments with great potential in the traveling industry.potential in the traveling industry.

OutlineOutline

Traveling Behavior

EnvironmentGlobal

TerrorismSocial

InfluencesEconomic Influences

Culture / Religion

Class / Education / Occupation

Limitations on International

TravelEmotions Gender

Travel Consumption

Decision

Issues Changing Traveling BehaviorIssues Changing Traveling Behavior

Environmental ChangesEnvironmental Changes

Shifts in the EconomyShifts in the Economy

Global TerrorismGlobal Terrorism

Social ChangesSocial Changes

Environmental ChangesEnvironmental Changes

Slight increases in temperature Slight increases in temperature leading to shifts in vacationer leading to shifts in vacationer numbers for every destination.numbers for every destination.

More severe number of violent More severe number of violent storms affecting the number of storms affecting the number of non-enjoyable days.non-enjoyable days.

Outcome: The determined traveler will continue to Outcome: The determined traveler will continue to travel, but the destination choice will be modified.travel, but the destination choice will be modified.

Shifts in the EconomyShifts in the Economy

Higher cost of livingHigher cost of living Reduced disposable income Reduced disposable income

for recreation and travel.for recreation and travel. Rising cost of fuel, being Rising cost of fuel, being

passed onto the consumers passed onto the consumers through fuel surcharges.through fuel surcharges.

Outcome: The distance from where the traveler is Outcome: The distance from where the traveler is traveling from, to the destination will be closer. Causing traveling from, to the destination will be closer. Causing travelers to settle for closer destinations. travelers to settle for closer destinations.

Global TerrorismGlobal Terrorism

Not affecting the amount Not affecting the amount of people traveling as a whole.of people traveling as a whole.

Affecting destination choices, Affecting destination choices, for places deemed by the for places deemed by the government too dangerous government too dangerous to travelto travel

Media worrying the public, Media worrying the public, just to sell a story.just to sell a story.

Outcome: Increased security due to terrorism, causing Outcome: Increased security due to terrorism, causing delays and less efficiency for travelers. delays and less efficiency for travelers.

Social ChangesSocial Changes

Current travel being more Current travel being more

individualistic.individualistic. More promotion of traveling More promotion of traveling

as a family. as a family. Promotion of family travel as Promotion of family travel as

beneficial for all members beneficial for all members

of the family.of the family.

Outcome: Education and understanding of other Outcome: Education and understanding of other cultures, specially by kids can be done through travel.cultures, specially by kids can be done through travel.

Family & Friend Influences in Travel Family & Friend Influences in Travel ConsumptionConsumption

Highly influential & greater Highly influential & greater

conformity due to presence conformity due to presence

of trust in group members.of trust in group members.

Children playing a more active Children playing a more active

role in decision making process.role in decision making process.

Strong family ties educating children through travel creates a long Strong family ties educating children through travel creates a long term memory and positive satisfaction.term memory and positive satisfaction.

Strong affiliation with friends links positive feelings with travel Strong affiliation with friends links positive feelings with travel purchases.purchases.

Underlying Key Issues in TravelUnderlying Key Issues in Travel

Behind the key issues which have been discussed, there are underlyingBehind the key issues which have been discussed, there are underlyingFactors, which have great impact on consumer’s traveling behaviors. Factors, which have great impact on consumer’s traveling behaviors. Since people identify more internally with group identification, in our Since people identify more internally with group identification, in our research, we analyzed five segments:research, we analyzed five segments:

Culture / ReligionCulture / Religion Class/Education/Occupation Class/Education/Occupation GenderGender Emotion Emotion Limitation on international travelLimitation on international travel

Culture / ReligionCulture / Religion

Culture and religion have great Culture and religion have great influence on individual influence on individual destination chosen.destination chosen.

Culture:Culture: Individuals may feel more Individuals may feel more comfortable in a place where comfortable in a place where some similarities may be in some similarities may be in language, food, and culture.language, food, and culture.

Ex. Chinese travellers may prefer Ex. Chinese travellers may prefer traveling to a location in China, or traveling to a location in China, or something similar (Chinatown).something similar (Chinatown).

Religion:Religions are often the ideals in which a person lives

life. Through these ideals decisions are made in accordance of the teaching of the religion being followed.

Ex. According to Islam, Muslims are to at least travel once to Mecca in their lifetime.

Culture / Religion

Class/Education/OccupationClass/Education/Occupation

When associating status, image, and class on destination choices, we When associating status, image, and class on destination choices, we

Must look at how our society is driven to maintain the portrayal of being Must look at how our society is driven to maintain the portrayal of being

a certain class or even a higher class than in actuality.a certain class or even a higher class than in actuality.

People in western societies are especially image conscious on how People in western societies are especially image conscious on how others view them and take the measures to try and project their others view them and take the measures to try and project their ideal self with their real self. This may effect on the type of vacation, ideal self with their real self. This may effect on the type of vacation, length of duration, and method of travel.length of duration, and method of travel.

Ex. Private Jet VS Grey hound Ex. Private Jet VS Grey hound

$10,000 per night exclusive package VS budget traveling$10,000 per night exclusive package VS budget traveling

Ever since the beginning of human travel, knowledge has been Ever since the beginning of human travel, knowledge has been associated with the number and types of destinations one travels to.associated with the number and types of destinations one travels to.

Ex. Traveling to Ex. Traveling to Egypt to explore the pyramids of Gyza versusEgypt to explore the pyramids of Gyza versus

ttraveling to Atlantic City to gambleraveling to Atlantic City to gamble

With the increase of global trading, business travel has already With the increase of global trading, business travel has already become a large segment of traveling markets. Since the use of low-become a large segment of traveling markets. Since the use of low-cost carriers and better-designed planes with large capacity over cost carriers and better-designed planes with large capacity over this few years, it incurs a huge demand of business travel. this few years, it incurs a huge demand of business travel.

GenderGender

We take look at Gender from two aspects.We take look at Gender from two aspects.

With women becoming a more important part of the workforce,With women becoming a more important part of the workforce, Women have more purchasing power, thus made their opinions Women have more purchasing power, thus made their opinions more influential on either travel location choosing, or travel more influential on either travel location choosing, or travel expenditure. expenditure.

Another aspect is just being noticed recently ---- gender based trips.Another aspect is just being noticed recently ---- gender based trips. Industry research indicates that today, 8 million gender-based group Industry research indicates that today, 8 million gender-based group trips occur annually, and it bring $40-billion-a-year in hotel industry trips occur annually, and it bring $40-billion-a-year in hotel industry

(Brian Harrington, 2007).(Brian Harrington, 2007).

EmotionsEmotions

Emotions are the fuel in determining how we feel about Emotions are the fuel in determining how we feel about the products that we choose to purchasethe products that we choose to purchase

Traveling is something that many people hold near and dear to their Traveling is something that many people hold near and dear to their inner selves. Therefore, traveling causes an emotional attachment. inner selves. Therefore, traveling causes an emotional attachment.

Consumers think less logically about their purchase when they are Consumers think less logically about their purchase when they are emotionally attached. emotionally attached.

““GroupthinkGroupthink” once in a group consumer likely change their ” once in a group consumer likely change their emotions and thought patters to adhere to . emotions and thought patters to adhere to .

Limitation on International TravelLimitation on International Travel

Because of the safety issues and the globe of Because of the safety issues and the globe of Terrorism expansion, Terrorism expansion,

most countries increase their security level. The government most countries increase their security level. The government

regulations regarding the safety, have great influence on international regulations regarding the safety, have great influence on international

travel.travel.

Ex. Due to a relative easier policy on Ex. Due to a relative easier policy on

issuing tourist Visas, the number issuing tourist Visas, the number

of tourists traveling to Canada is of tourists traveling to Canada is

increasing fifty times faster than increasing fifty times faster than

the United States. the United States.

Research FindingsResearch Findings Group Questionnaire: 2 extremesGroup Questionnaire: 2 extremes

1.) Individuals who prefer to travel alone & no 1.) Individuals who prefer to travel alone & no identification identification with groups with groups

2.) Individuals who enjoy traveling within a group and 2.) Individuals who enjoy traveling within a group and consider themselves as part of a subgroup consider themselves as part of a subgroup

91% would have a better time traveling with 91% would have a better time traveling with others.others.

Travel agencies are seeking to undertake anyone Travel agencies are seeking to undertake anyone and everyone. This strategy makes it difficult to and everyone. This strategy makes it difficult to target any specific segment.target any specific segment.

Concluding RemarksConcluding Remarks

More people prefer group travel over solo, thus creating More people prefer group travel over solo, thus creating opportunity in travel market.opportunity in travel market.

More people = More $$$More people = More $$$

Group travel creates a longer lasting recall of excursions Group travel creates a longer lasting recall of excursions due to group affiliation & sense of belongingness.due to group affiliation & sense of belongingness.

Group influence will lead to less concern about price.Group influence will lead to less concern about price.

Recommendations for ManagersRecommendations for Managers

Expand on student programsExpand on student programs Create more inclusive Create more inclusive

tailored packages for segmentstailored packages for segments Family travel needs to promote Family travel needs to promote

children as a significant segment children as a significant segment

to target.to target. Online booking should incorporate Online booking should incorporate

chat rooms and message boards to seek more info.chat rooms and message boards to seek more info. Gay / Lesbian travel segmentGay / Lesbian travel segment Senior travel segment –Baby boomersSenior travel segment –Baby boomers

Questions?Questions?

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