Benefit segmentation of Japanese pleasure travelers to the USA and Canada: selecting target markets based on the profitability and risk of individual market segments

Abstract

Many previous research studies have offered alternative approaches to segmenting travel markets, but few have provided any decision rules for selecting target markets. This study used factor-cluster analysis to define three benefit-based segments of the Japanese outbound travel market (novelty/nature seekers, escape/relaxation seekers, and family/outdoor activity seekers). The demographic and trip-related characteristics of these markets were compared. Four criteria were then used (profitability, risk, risk-adjusted profitability index, and relative segment size) to reach a decision on the choice of the optimum target market.