Tourism Market Segmentation Based on Price Sensitivity: Finding Similar Price Preferences on Tourism Activities

Lorenzo Masiero, Juan L. Nicolau

Research output: Journal article publicationJournal articleAcademic researchpeer-review

38 Citations (Scopus)

Abstract

This article builds on the double role of the effect of prices on the choice of tourism activities: not only is it the sole component of the destination marketing mix that represents revenue but also a determinant factor in tourist choice. On this account, identifying patterns of tourists with different degrees of sensitivities to prices would help destinations design an appropriate bundle of activities and have a clear definition of the segment they should try to attract. Accordingly, the objective of this article is to identify tourist segments from individual price sensitivities to activities. The results show-although price has a dissuasive influence on the choice of activities-a differentiated effect (as this dissuasiveness is not general for all individuals); this heterogeneous responsiveness to price supports its use as a segmentation criterion. In the empirical application, four segments are found with significantly different price sensitivities.
Original languageEnglish
Pages (from-to)426-435
Number of pages10
JournalJournal of Travel Research
Volume51
Issue number4
DOIs
Publication statusPublished - 1 Jan 2012
Externally publishedYes

Keywords

  • individual price sensitivity
  • segmentation strategy
  • tourism activities
  • tourist choice

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation
  • Tourism, Leisure and Hospitality Management

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