Source - Applications of Multivariate Analysis in International Tourism Research: The Marketing Strategy Perspective of NTOs by Satish Chandra & Dennis Menezes
• In recent times International tourism has increased exponentially. With this growth the industry has become significantly more competitive, and the marketing role of National Tourism Organizations (NTOs) has taken on added significance. Correspondingly, research related to the marketing aspects of international tourism has increased.
• The paper focuses on:
– 1. identifying and describing the key components of marketing strategy that must be addressed by NTOs, and
– 2. identifying and describing the multivariate statistical techniques most relevant to research that relates to enhancing the marketing strategies of NTOs along with citing some of the recent related research.
Multivariate Techniques used for achieving the Marketing Strategies.
Refer Above Diagram. Prior to addressing these tasks, a SWOT analysis should be completed.
• Cluster Analysis (In Baseline/Post Hoc Segmentation): In Baseline/Post Hoc Segmentation tourists are classified into clusters on the basis of their appropriate attribute similarities.
• Baseline segmentation involves analyzing a large cross sectional sample of tourists where data has been collected on a variety of variables, such as psychological, life style, demographic, and other variables of interest. The preferred mode of analyzing this large set of data is Cluster analysis. In the baseline segmentation approach using Cluster analysis, the segments are produced analytically.
• Cluster analysis classifies the subjects into clusters, so that each subject is very similar to other subjects in that cluster with respect to selected criterion variables. The clusters formed exhibit high within cluster homogeneity and high between cluster heterogeneity. Thus, when good classification is achieved, subjects within clusters will be close together when plotted geometrically, but different clusters will be far apart. (Refer Figure 3 above).
• In the context of segmenting tourism markets, Cluster analysis can be used to identify different clusters of tourists that exist within a larger group or market of tourists. As a result, Cluster analysis may be used to develop a taxonomy of different types of tourist segments and thereby gain a better understanding of the composition of the larger population of tourists. The within cluster similarity of the tourists is typically determined using an inter subject Euclidean distance measured on two variables.
Conclusion
• International tourist arrivals increased from approximately 25 million in 1950 to 625 million in 1998, an increase of 2,500 percent. A WTO survey of NTOs and leading experts in tourism envision the following :
– (1) international tourism arrivals by 2020 to be 1.6 billion, with spending in excess of 2 trillion U.S. dollars,
– (2) the percent of the traveling population involved in international travel increasing from 3.5 percent in 1998 to 7 percent by 2020,
– (3), Europe continuing to be the largest international tourism region, although by 2020 its market share being significantly eroded,
– (4) by 2020 China being the largest receiver of international tourists,
– (5) among the various international tourism market segments, eco-tourism, cultural tourism, theme based tourism, adventure tourism, and the cruise market growing in importance, and
– (6) tourism as a sector growing at a faster rate than the global economy.
• These predictions by the WTO suggest that the international tourism market will continue to expand at a rapid rate and become increasingly competitive. In this environment, the use of effective and efficient marketing strategies (based on appropriate usage of Multivariate Techniques) by NTOs as well as other international tourism organizations will therefore become increasingly important.
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