Question

You have just been appointed the new marketing manager for Bon Voyage, a large travel group. Bon Voyage offers a range of holiday packages aimed at several parts of the market including package tour operations, a nationwide chain of travel shops and a fleet of aircraft.

One of the fastest growing segments of the travel market in recent years has been the cruise market. Once the domain of the privileged few, cruises are now available to a much wider target market as costs have come down and incomes have risen. Until now, Bon Voyage has not been a player in the cruise marketplace. It now realizes it may have been mistaken in this respect and wishes to enter the market as soon as possible. The company has negotiated the provision of two cruise ships which will, next season, sail round the Mediterranean and the Caribbean respectively. The ships have just been refurbished and offer the most up-to-date facilities.

Other companies in this market have been predominantly targeting middle-income groups. However, there remains a part of the market which is aimed primarily at the luxury end, with high prices and prestigious ships.

• What are the competitors doing to acquire customers?

• What are the segments and customers locking for?
• How much customer trying to pay?
• Do secondary research?
• What market looks like?

How to segment this market?

Which target segment might be best appropriate and why? Discuss.

How its product offerings in this area might be positioned so as to differentiate if from existing competitors.

Answer 1

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1. There in the travel market, the competitions increase at a larger rate and every industry want to take lead in the market to increase their popularity and revenue so they are doing some practices as advertisement, offer a discount, make events, better customer service provided at optimum cost, comfortable luxury accommodations, events during the package, target customers.

2. Companies are mainly looking for accommodation segments, transportation segment, food and beverages segment, lodging, and recreation segment. The Travel industries are mainly looking for youth customers, a newly married couple, high-class customers, travellers, etc.

3. A customer tries to pay on the basis of their income, higher-income customers want to pay for luxury services and they not looking for how much amount to pay, the middle-income customer thinks about how much to pay and which travel provides better services at optimum cost and the middle-income customer trying to pay less as possible.

4. To do secondary research key trend data are used on a regular or weekly time period based and these key trend helps to research what customer wants, the requirement of services, future planning, and forecasting, etc.

5. The market is to be more competitive compare to before because every customer wants to get more service and companies provide more offers for customers to increase the business revenue and advertising by unique methods that make the travel market more competitive.

6. To segment travel market some techniques to be used as a demographic technique, on lifestyle bases, based on geography, based on the behavior and ethics

7. The lifestyle segment is best appropriate because a person or community lifestyle provides information on what services the customers looking for.

8. To highlights their travel industry product, the travel industry should offer in this area to take lead in the market by mouth word marketing, providing better accommodation, better transportation, engage with customers on social networks, find a travel niche market, entertainment facilities, food, and beverage quality. Providing these product's best services offer a better position from the existing competitors.