1. TOURISM MARKET
SEGMENTATION IN CONTEXT
OF NEPAL
1

2. OUR TEAM
Jivan Nepali
IOE, Pulchowk
Campus
June 18, 2013
Narayan Pd. Kandel
IOE, Pulchowk Campus
2

3. TOURISM
Huge possibility
of Employment
Generation
Covers 4.3% of
National GDP
(2012)
So, if we can effectively market the tourism industry in
Nepal & abroad?
3

4. TOURISM MARKET
SEGMENTATION
Segmentation
Small group bearing similar behavior
characteristics
Market Segments & Target Market
Means of implementing marketing
strategy
4

5. WHY MARKET
SEGMENTATION IN TOURISM
Natural
Resources?
Cultural
Resources?
5

6. WHY MARKET
SEGMENTATION IN TOURISM
“focus resources on the customers who are most likely to be
persuaded to visit their destination or to purchase their
product or service”
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7. DATA TO BE SEGMENTED
Tourist Details Records (TDRs)
Demographic characteristics along
with
purpose of visit
total duration stay
tentative places of visit
7

8. SEGMENTATION
APPROACHES
A-priori Segmentation
Data-driven Segmentation
“Study shows Older People Travel More & Go Farther”
- Journal of Travel Research
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9. BASIS FOR SEGMENTATION
Geographic
Demographic
Psychographic/Life-style
Benefits
Usage
Loyalty
Situation
Behavioral
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10. BUILDING SEGMENTATION
MODEL
Step 1: Selection of the Segmentation
Base
(e.g. Travel Motivations, Vacation Activities)
Step 2: Grouping of respondents
Step 2(a): Selection of segmentation
algorithms(s)
Step 2(b): Stability Analysis
Step 2(c): Computation of final
segmentation solution 10

11. BUILDING SEGMENTATION
MODEL
Step 3: Profiling (external validation) of
segments by identifying in which personal
characteristics segments differ significantly
Step 4: Managerial assessments of the
usefulness of the market segments (and
formulation of targeted market activities)
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12. SEGMENTATION RESULTS
Purpose of Visit
Data Source: Nepal Tourism Statistics Report-2010
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13. SEGMENTATION RESULTS
Travel Partners
Data Source: Nepal Tourism Statistics Report-2010
2009
2010
13

14. SEGMENTATION RESULTS
Country of Origin
Data Source: Nepal Tourism Statistics Report-2010 14

15. SEGMENTATION RESULTS
Satisfaction Level
Data Source: Nepal Tourism Statistics Report-2010
15

16. References
[1] Hanlan J., Fuller D., Wilde S. J. (2006). “Segmenting tourism markets: a
critical review”. Southern Cross University, Melbourne, Australia.
[2] Barahi S., Fan R., Hung P., Malla P., Yeung R. (2011). “Tourism Cluster in
Nepal - Microeconomics of Competitiveness”. Harvard Business School, USA.
[3] Angus C., Brocklesby J. (2010). “Tapping the Domestic Tourism Market”.
Angus & Associates, Tourism Resource Consultants and The Knowledge
Warehouse, Ministry of Tourism, New Zealand.
[4] Khatri, L., B., Kayastha R., P. (2010). “Nepal Tourism Statistics 2010-
Provisional Report”. Ministry of Tourism & Civil Aviation, Government of
Nepal, Singh Durbar, Kathmandu.
[5] Khatri, L., B., Kayastha R., P., Pokhrel M., P., K.C., J. (2011). “Nepal
Tourism Statistics 2011- Annual Statistical Report”. Ministry of Tourism &
Civil Aviation, Government of Nepal, Singh Durbar, Kathmandu.
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17. Thank
You!
Questions & Answers Session
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