Segmentation in the travel business

Running Head Segmentation in the Travel Business

Segmentation in the Travel Business

iExplore is an online company which proposes a great number of travel services for diverse customer targets . Travel agencies , like iExplore are becoming more and more interlinked on a world-wide basis . Travel industry that deals in large transactions for companies are becoming increasingly globalised

iExplore proposes travel insurance services , medical services and concierge services . The main products and services proposed by iExplore involve tours and expeditions , hotel and air booking services . The main activities are bicycle touring , canal

and river cruising , canoeing fishing , mountaineering , safari , ecotours , snow sports , etc . iExplore provides detailed information about their products and activities . In to carry out their activities and the execution of work , the site provides a combination of informative , advisory and communicative features . These activities reflect the ability to get along with other people , and are important attributes at all levels of interaction . The degree of technical competence required varies according to the type of information provided

iExplore follows differentiated strategy oriented on diverse customer groups with different offerings . Product and price differentiation allows iExplore to attract diverse customers proposing unique services and products . For instance , customer can select a price from 1 ,000 or less to 5 ,000 or more according to their income and family size . Also they can select length of the tour and calculate the cost of holidays iExplore engages in differentiated target marketing , offering a full range of services within a given product category . Clearly there are advantages in following this approach based on the business efficiency Those products which lend themselves to a standardized approach are those for which there is a sufficiently large global market segment and cultural differences do not impose the need for adaptation . To an extent , then , the greater potential for raised profitability resulting from more efficiency in business functions is undermined by the additional costs required to market the brand on a broad scale . In iExplore , the price of the product conveys much more to the consumer than simply the amount of money required to make the transaction . Price plays a powerful role in product positioning as it indicates to customers the 'value ' of the product , that is , both the actual and perceived value (Fill 1999

Electronic commerce makes it possible to take market segmentation to another level , by providing an economical means by which iExplore can deliver individualized products and services to each and every customer based on feedback and interaction with the customers . Relationship marketing strategies embrace this idea of treating each customer in an individualized way . Behavior segmentation is focused on whether or not people buy and use a product , as well as how often and how much they use or consume . Specification in iExplore is determined as a result of an organization 's policy , which in turn resulted from decisions on its market policy , which in turn resulted from its consideration of the market or customer needs , requirements , and the activities of competitors . If customers...