Review: Study in Singapore About Preferences in Personalized Travel Services
Jason Toussaint ebook author
Review: Study in Singapore About Preferences in Personalized Travel Services
Executive Summary
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services The aims of this review is to analyze the study that explores the demand for personalized travel services within the affluent customer segment of travelers in Singapore. We review the desired service characteristics a travel worker should have according to this population. The international tourism sector has grown quickly over the last 10 years, according to the United Nations World Tourism Organization, international tourist arrivals in 2012 grew to 980 million. Since Singapore has experienced an economic growth in the las few years, the travel market has also grown. This study questioned Singapore high income population (higher than $100,000) with an email survey. The survey findings indicate that more than 64% of respondents prefer personalized travel services (PTS), 70% of the ones who book their trips with travel agencies also indicated their preference for PTS. And even the people who book themselves their tours where interested in a 60% in PTS. Travelers nowadays look for more value-added services and different and original tour packages. The growth for the desire for unusual tours is creating a niche market for travel agents to exploit.
Introduction
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services At the beginning of the traveler era, people used to travel for business, until in 19th century the wealthiest and aristocrats started to travel for leisure. The World Tourism Organization (UNTWO) describes tourists as people who travel out of their current environment for leisure or other purposes. Each year, more people become part of the tourism activity, which has been for a long time a dynamic and very fast growing sector of the economy. According to the Future Foundation research, consumers tend to perceive holiday trips as the number one luxury product. Growth of this area of the economy is being driven by markets that in the past years have been emerging, like Asia and South America. With help of technology and nowadays affordability of air travel, tourism grows at an annual rate of 7%. The World Trade Organization (WTO) reported that the international tourism accounts are about 12% of international spending, and also creates 1 in 12 jobs worldwide. The tourism industry has been defined as a set of related activities and processes a tourist will interact during his travel.
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services Since tourism has been growing at such fast rate, the initial model of arranging pre-selected itineraries and tours is starting to be replaced for a more customized travel planning, and this has opened a new way of managing the travel business, giving the opportunity to travel agencies to personalize more their services according to each client’s need. In this document we plan to review an investigation that aims to study and understand the travel behavior of tourists, with special attention to the group of affluent travelers who are the ones that most need and desire a customized travel plan. The authors of this investigation defined as affluent the customers with an annual household income of $100,000 and more. The study conducted a survey of a sample of the target market and considers the findings in evaluating the demand for personalized travel services (PTS) in Singapore. This will be useful to travel service providers in order to reach out to this customer segment.
Trends in Global Travel Industry
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services Asians spend the most per trip, ahead of Americans and Europeans. Asia Pacific has seen a 14% increase in outbound travel. UNTWO forecasts that the outbound travel sector will grow from 1 billion in 2010 to 1.56 billion in 2020. Travel has become more activity-based rather than destination-based. Travel experiences and personalized tours are more important. Travel spending and tastes have become more polarized. Smith has concluded in his studies that a tourism product is made up of five elements: physical plant, service, hospitality, freedom of choice and involvement. Many travelers nowadays have special-interest tours, for example culinary tours, nature-based tours, adventure travel, cultural tours, eco-tourism, among others. The growth of this tendency has created the need for personalized and customized approach for travel agencies. The national tourism agency of Britain, Visit Britain, unfolded some characteristics of the most economically important luxury travel market. They categorized luxury travelers in three groups:
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services 1. Gold: overt, demonstrates and broadcasts wealth. 2. Platinum: lees overt, comfortable luxury. 3. Black: understated, minimal, ultimate in exclusivity. Synovate, a global marketing research company, developed a survey in 2011, which involved 1,678 affluent Singaporeans, and it showed that this group of people want and need exclusivity and understands quality perception. Customers now demand higher service levels, personalized packages and better quality information, and this is proved by the fact that 38% of travelers are willing to pay up to 20% more for customized services and products.
Objectives The objectives of this investigation are two. The first one is to establish the market potential for personalized travel services (PTS) in Singapore. The second one is to create an inventory of desirable service attributes of PTS.
Methodology The authors of this research used as primary data collection instrument a survey questionnaire. Respondents were selected from business associates and customers of any travel related products.
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services The questions of the survey the researchers made, were designed in order to disclose the following points: Demand for personalized travel services. Criteria participants use in picking a travel agent. The service attributes they would expect from the personalized travel services. Frequency of holiday travel. Who arranged their trips? Their experience with their travel arranger. Their acceptance of “standard tour packages� offered by travel agents.
Findings It is clear the growing demand of PTS, a more professional service according to the one is currently available. Respondents prefer the services of a professional agent who understands their needs. Regarding the frequency of travel, 100% of the respondents took at least one holiday trip a year. 42,9% take two trips a year, 7,1% 3 a year, and 11,9% take more than 3 trips a year. The ones that take two or more trips demand PTS in a 71,4%, but the ones who make only one trip only in 57%.
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services
Discussion There is a huge market potential for PTS, as the literature and the survey findings show. Affluent travelers, who are mostly high income people, are seeking for travel services that can supply all their needs and desires. This survey findings assures that the five value propositions of PTS, proposed by Cheyne et al, are in correspondence with the desired attributes. Professionalism is related to the staff capacity to be reliable and to assure that they will meet all the aspects of the travel needs each customer has. Security and to handle complexity comes along with providing an excellent experience for the customer. Good deals are related to value. And trust is essential because of the time and financial commitment a holiday trip means to the customer. The report “Mega-Trends of Tourism in Asia Pacific� reveals that travel agents must transform themselves and their agencies into travel advisors and consultants. And ensure personalized services by having thorough knowledge and expertise to provide the best experience to customers.
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services Conclusion The last trend in tourism and traveling is to seek for the most personalized service an agent can provide. Customers want to have the best experience with all their needs and personal specifications covered.
The travel markets have changed to niche markets. The suggestions of the survey respondents certify that this gap that has been created by new tendencies can be covered with PTS. This evolution will advance in an increasing demand for this customized services.
The travel industry is very competitive, but most travel agencies have limitations when providing travel services to affluent customers. This is caused by the options they provide to customers, usually it involves a retail set up, and also have poorly trained staff.
Additional Resources
Review: Study in Singapore About Preferences in Personalized Travel Services
Review: Study in Singapore About Preferences in Personalized Travel Services
1. Abhishek singh bhati et al..(2013). Personalised Travel Services: an Exploratory Study in Singapore Context. Journal on Business Review (GBR), 3(1), 108-113. 2. UNWTO Tourism Highlights (2011). Retrieved on 2 February 2012 from: http://mkt.unwto.org/sites/all/files/docpdf/unwtoh... 3. Mega-Trends of Tourism in Asia-Pacific. (2006). Retrieved on 30 January 2012 from http://www.tourism.wuwien.ac.at/summit/material/me... 4. Cheyne, J., Downes, M. & Legg, S. (2005). “Travel agent vs internet: What influences travel consumer choices?� Journal of Vacation Marketing. 12(1):48 5. Smith, S.L.J. (1994). The tourism product. Annals of Tourism Research, 21(3), 582-595. 6. VisitBritain (2010). Luxury Tourism Trends Summary. Retrieved on 3 February 2012 from http://www.visitbritain.org/Images/Luxury%20%20Tourism%20Trends_tcm2915230.pdf
Review: Study in Singapore About Preferences in Personalized Travel Services