Segmentation analysis of domestic tourists — A case study

Abstract

This paper presents the segmentation analysis of domestic leisure tourists in India. Samples were taken from visitors to 6 cities categorised by ‘leisure value’ and the population was further segmented based on ‘household income’ and ‘trip frequency’. Key salient features were substantial numbers of tourists belonging to middle-income group, and major share going to train. Logit analysis was carried out. NL structure was justified for seven categorisations out of nine. The proposed sub-categorisation was found to be significant and statically different then the parent population. Factors like household income, comfort and convenience of use of a travel mode, service levels in travel modes, budgetary constraints, presence of children and older persons in a family and affordability of travel mode were found to be influencing the leisure travel. Consideration set got influenced by user and destination connectivity. Frequency of travel was affected by economic affordability and status of the tourist. Value of travel time kept shifting judiciously across the sub-categories. The tourists valued their time highly if visiting spiritual locations or made less number of leisure trips in a year. Middle income group was found aspiring to avail higher facilities on leisure travel and was willing to pay more for the same. Policy initiatives are proposed based on the work. The approach is applicable to any city across the countries, which has either cultural, religious or waterfront value.