8 Domestic Tourism Market Segments

new-zealand-domestic-tourism-market-segments“Domestic Tourism is big.”  It’s worth $12.4 billion to our economy per year (compared to $9.3 billion for international tourism) and so the Ministry of Tourism has recently completed comprehensive domestic tourism market segmentation research for the New Zealand market that “investigates the motivations behind taking a holiday, segments the domestic market and provides practical ways to apply the research for domestic tourism marketers.”

Understanding your customer target segments provides a key way to direct your marketing  message to the right people in the right way and develop tourism products/packages that cater for the segments you wish to target.  So we thought it would be useful to provide a summary on the blog of the “8 domestic tourism market segments” they have defined in the research.  You can download the full PDF document here.

Being There – 22% of the market

  • Market proposition: “Being with family and friends”
  • More likely to be retired and mainly 65 years+
  • 60% married/couple with children no longer at home
  • Likely to travel by private car or campervan and stay in private homes or motels
  • Ideal holiday characteristics: safe, scenery and heritage
  • Interests & Priorities: gardening, health, time with family/friends, paying bills, reading
  • Travel products that appeal: garden/nature, culture and heritage, assisted travel
  • Market to this segment through: major newspapers, special interest media (e.g. gardening TV channels and publications), affinity groups, targeted online channels, email marketing

Searching – 13% of the market

  • Market proposition: “Freedom and good times with friends”
  • More likely to be young (15-24 years) and live with parents or friends – mainly 15-24 age group
  • 70% single, no children
  • Likely to travel by bus or air and stay in hotels
  • Ideal holiday characteristics: exciting, different, nightlife, cities, beaches, shopping and entertaining
  • Interests & Priorities: computer games, texting, having a good time, finding life direction, education, cinema
  • Travel products that appeal: online gaming, urban product, Contiki style, sports product
  • Market to this segment through: online/social media, youth media (magazines, blogs), educational interest groups/institutions, events/parties, mobile applications, cinema

Rewarding – 13% of market

  • Market proposition: “You work hard, you deserve it”
  • More likely to be males in management or professional positions, living in Auckland – mainly 50-64 age group and mix of 25-39yrs and 40-49yrs
  • 28% married/couple, no children; 24% married/couple with children no longer at home; 20% married/couple with children at home
  • Likely to travel by company car or plane and stay in hotels, motels or serviced apartments
  • Ideal holiday characteristics: romantic, cuisine
  • Interests & Priorities: television, relationship, reducing debt, surfing online, travel/holidays
  • Travel products that appeal: golf products, short breaks, food and wine
  • Market to this segment through: business media, special interest groups/media/online (e.g. golf clubs or magazines)

Immersing – 13% of market

  • Market proposition: “Expand your mind, add to your experiences, enrich your life”
  • More likely to be female, living in the city and tertiary educated – mainly 25-39 age group
  • 38% single, no children; 32% married/couple, no children
  • Likely to travel by private car and stay in private dwellings and backpackers
  • Ideal holiday characteristics: relaxing, entertaining, different, scenic, affordable, nature-based, cuisine, heritage, peaceful
  • Interests & Priorities: financial obligations, finding direction in life, pets, education, building career, travel/holidays
  • Travel products that appeal: outdoors, culture and heritage
  • Market to this segment through: special interest and lifestyle media (e.g. health media, yoga/wellness media), online channels (travel/lifestyle sites), professional media/interest groups, tertiary education institutes

Making Do – 12% of the market

  • Market proposition: “You deserve a break”
  • More likely to be female, earning a low income and have children at home – mainly a mix of 25-39 and 40-49 age groups
  • 64% married/couple with children living at home
  • Likely to travel by car/van and stay in rented accommodation
  • Ideal holiday characteristics: affordable, family-friendly, peaceful, safe, easy
  • Interests & Priorities: raising family, paying the bills, time with family/friends, health, reducing debt
  • Travel products that appeal: childcare assistance, second hand shops, family friendly/theme park
  • Market to this segment through: women’s magazines, lifestyle media, daytime TV/radio, advertising at fairs/markets

Embracing Life – 11% of market

  • Market proposition: “A FULL life for you and your family”
  • More likely to be family-focused and earning a high income – mainly mix of 25-39 and 40-49 age groups
  • 83% married/couple with children living at home (including shared custody)
  • Likely to travel by private car and (sometimes) bicycle, and stay in motels and rented accommodation
  • Ideal holiday characteristics: relaxing, family-friendly, outdoors, nature-based, romantic
  • Interests & Priorities: raising family, relationships, friends/family, entertaining at home, reducing debt/building assets, career/business, travel/holidays
  • Travel products that appeal: outdoors, culture and heritage, food and wine, experiences for the whole family
  • Market to this segment through: business media, special interest groups/media/online (e.g. golf/outdoor. boating, fishing), major newspapers, outdoor events and shows

Creating – 8% of market

  • Market proposition: “Good times to share with your family”
  • More likely to form a range of ethnic groups and to have a tertiary (often trade) qualification – mainly 25-39 and 40-49 age groups
  • 65% married/couple with children living at home, 23% single with children living at home
  • Likely to travel by private car or company vehicle, and be visiting friends and relatives
  • Ideal holiday characteristics: relaxing, family-friendly, outdoor activities, nature-based experiences
  • Interests & Priorities: raising family, health, financial obligations, building career and assets
  • Travel products that appeal: outdoors, culture and heritage, beaches, events
  • Market to this segment through: special interest groups/media (e.g. cultural groups and media), online channels, targeted lifestyle media, major newspapers, cultural and community events

Aiming High – 8% of market

  • Market proposition: “More, bigger, best!”
    More likely to be students or young professionals from affluent backgrounds, often living with parents or friends – mainly 15-24 age group
    62% single, no children, 24% married/couple, no children
    Likely to travel with their parents and stay in commercial accommodation
    Ideal holiday characteristics: exciting, sporting, challenging, different, nightlife, big cities, beaches, shopping
    Interests & Priorities: having a good time, clubbing/parties, finding direction in life, sports/hobbies and fitness, education, travel/holiday
    Travel products that appeal: adventure, urban product, wellness experiences
    Market to this segment through: youth media (magazines, blogs), special interest media (e.g. skiing/snow boarding), online channels, interest groups (sports clubs, other affinity groups), cinema

There are free workshops about domestic tourism segmentation currently in progress, if you want to get a long to one coming up see this schedule.

4 Comments

  1. Robyn Bolton May 4, 2010 at 1:14 pm #

    Its timely to be reminded of the importance of the domestic sector and great to have the research to enable us to really target our marketing efforts.

    We should never forget that for most NZ regions the domestic market is the largest sector. Equally important is the fact that domestic visitors travel all year round not just during the summer.

    Some other food for thought – NZ’ers are becoming more and more environmentally conscious (according to the RVM) and are particularly concerned with recycling! When oh when will our District Councils get the message and provide us with proper recycling. That is one of the few situations when I would be happy to see an increase in rates.

  2. Carolyn Deuchar May 4, 2010 at 1:15 pm #

    These are useful also for the myriad of promotions groups and associations in New Zealand’s peripheral, ‘off the tourism radar’, ‘off the beaten track’ less favoured rural tourism destinations.

    Promotions Associations exist primarily on volunteer time and energy and are significantly under-resourced. They work tirelessly to try and retain and regenerate population. I know of several groups made up of local tourism SME, other businesses and community and this values-based approach will appeal to them – they want to attract like-minded souls to their region to work, visit, and live.

    Robyn … reading a good book you might be interested in … The Moralisation of Tourism: sun, sand and saving the world! by Jim Butcher (oldie but a goodie 1993).

    • Robyn Bolton May 4, 2010 at 1:52 pm #

      Where would NZ regions be without Promotions Associations, Business Associations and Tourism Group? They are always very passionate about their districts/regions but often lack the right tools upon which to base decisions. There is certainly a great deal of useful data out there if they just know where to look. Why I love what I do!!

      Thanks for the tip Carolyn.

  3. Steve Davies June 15, 2010 at 6:46 pm #

    No wonder Tourism Australia is focusing a huge part of their tourism budget at Australians.

    Your biggest market is your own.

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