Travel Today – Market Segmentation and Analysis

free essayTravel Today has experienced a slowdown in business for the past 5 years. Having been in operation for the past 25 years, the company considered that it has done everything right to remain relevant in the market. Thus, it was unaware of recent market dynamics that revolutionized the way of doing business. The travel agency believed that the recent slowdown in business would be partly attributable to the increased use of internet-based technologies used by its existing customers and the general market while planning and booking vacations. In the past module, it was proposed that Travel Today should introduce an innovative product that would sell out vacations to regions that are almost impossible to travel alone, thus making it necessary for travelers to team up with others to have successful tours. The innovative product called ‘travelingtours’ is expected to turn around the Travel Today’s business.

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Market Segmentation and Target Market Analysis

Market segmentation is a marketing practice whereby an organization divides its market into small segments that share common interests (Kotler & Keller, 2013). Market segmentation is meant to enable an organization to introduce customized products and services that meet the specific needs of the small market segment (Mariani, Buhalis, Longhi, & Vitouladiti, 2014). On this issue, it is important to address the importance of target market analysis. A target market is a specific niche that consists of customers who share common needs and interests. It is worth highlighting that good marketing practices take into consideration the target market analysis in market segmentation (Popkova, Morkovina, Patsyuk, Panyavina, & Popov, 2013). Linking this to Travel Today and travelingtours, it can be acknowledged that the innovative product seeks to provide extreme adventure and exploration travelers a chance to satisfy their needs through the traveling agency. Customers were using internet-based technologies to book their travels to contemporary and widely known travel destinations such as game drives and historic scenes. However, there existed a gap in making travel bookings and plans to destinations that necessitated group travels or special arrangements. Such destinations included those with political instability and little available information on the internet, those that subjected travelers to extreme health conditions, and those that required special arrangements. As such, travelingtours provides customers with a chance to make bookings and traveling plans to destinations where they would not have been able to make arrangements by themselves.

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Taking into consideration the market segmentation based on geographic, behavioral, psychographic, and demographic features, the target market for this product includes researchers, businesspersons, journalists, medical practitioners, industrialists, religious travelers and any other person who requires specialized travel arrangements. The target market covers all customer’s locations, both genders, and 18-64 age group. Moreover, it will include those who prefer to book extreme adventure and exploration tours.

In addition to travelingtours, there is a need for Travel Today to implement an internet-based platform that will enable its clients to make bookings and travels to their destinations of their choice. As such, the travel agency will be able to align its business operations with the current trends in the market, thus being able to provide utility to the growing market base using internet-based travel arrangements.

Competition Analysis

Competition analysis is meant to assess a company’s position in the market relative to its competitors with an objective of identifying how it manages the competition (Trieloff & Buys, 2013; Kotler & Keller, 2013). The travel industry is highly competitive. As highlighted previously, the internet has revolutionized the way of doing business in this industry, a factor that was associated with the current business slowdown at Travel Today. There are three main competitors of Travel Today, namely Global Travels, Experience Travels, and Out and About Travels. Just like Travel Today, Global Travels is an old player in the industry, having been in operation for 30 years. The company is experiencing a slowdown in business just like Travel Today. It is cutting down its workforce and operations as a measure to decrease its costs. Like Travel Today, the company is also developing an internet platform to align its business with the current market demands. It can be acknowledged that Travel Today is more competitive that Global Travels.


Experience Travels is a young player in the market, established 4 years ago. The company has a young workforce that has dynamic ideas aligned with the modern business world. Moreover, it has a strong online presence and a strong airline ticketing business line as a partner of Emirates Airlines. However, the company does not have a strong brand name. In an overhaul, it presents Travels Today with intense competition as it can be considered the organization of the future.

Lastly, Out and About is the oldest player among the 3 with more than 40 years of operation. The company has stuck to the old way of doing business and is a preferred choice for travelers aged 55 years and above. It can be acknowledged that the company is slightly better than Travel Today in the market age above 22 years. However, the company is not learning, hence cannot be considered a strong competitor in the end.

SWOT Analysis

Strengths

  • Strong brand name.
  • Travelingtours is promising since it addresses specific market needs.
  • Good market intelligence and global network.

Weaknesses

  • Poor online presence.
  • Aging employees, who do not develop new ideas.
  • Outdated business practices.

Opportunities

  • Travelingtours is promising since it addresses specific market needs.
  • The strong online platform would provide the company with a chance to address needs of an internet-based market.
  • Partnering with other stakeholders in the travel industry.

Threats

  • Stiff competition from new and old companies.
  • Rise in the use of free online travel and tours services.
  • Aging employees, who might go with organizational knowledge without having the platform for transition to young employees.

Conclusion

This essay has been successful in giving a situation analysis of Travel Today. The essay identified that market segmentation and target market analysis would be critical in enabling the travel agency address specific market needs. A competition analysis identified that although the company enjoys a competitive advantage over several of its competitors, it faces stiff competition from Experience Travels, hence the need to develop its online travel and tours platform.