Target Market Description

Target Market Description

Our marketing plan will t= arget American couples traveling to Uruguay for business meetings.

Demographics=

Approximately 27 million Americans traveled internationally during 2004 and over 28 million in 2005. According to The Office of Travel and Tourism Industries, 7.83 million of t= hose travelers, or 27 percent, traveled for business purposes (Office of Travel = and Tourism Industries, 2005).

Age U.S. su= rveys and research reports have placed the frequent business traveler within the = age range of 30 to 55 years old. According to a FORBES Traveler Media Kit, the average business traveler is 45 years old (Forbes Traveler, 2006).

Gender The gender r= atio of today’s business traveler is dramatically different than it was th= irty years ago. A study conducted by the Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management at New York University (2003) r= eported that 40 percent of business travelers are women. The Miami Herald (2006) al= so stated that women account for 40 percent of business travelers in the U.S. An= article from Working Knowledge, a Harvard Business School publication, reported that females are estimated to comprise 50 percent of frequent fliers. In addition, the article stated that a woman may make up t= o 70 percent of her family’s personal travel decisions. The author also predicted that the number of female business travelers would continue to increase, noting that thirty years ago women accounted for only one percent= of business travelers (Lagace, 2005).

Marital Status We a= re specifically targeting couples, which may include married couples or people= in long-term partnerships.

Geographic Location Our client has chosen the departure cities of New York and Los Angeles, which means we are specifically interested in customers located in these geographical regions. Fortunately, of the 7.8 million business travelers who went overseas, 41 percent departed from California or New York (OTTI, 2005).

Income According to= American Way, the official magazine for American Airlines, 86 percent of readers have a house= hold income above $100,000.00 (= American Way, 2006). Forbes Travel, a magazine that tar= gets the upper echelon of business and leisure travelers, reports an average rea= der income of $150,000 (Forbes Traveler.com, 2006).

Business Traveler Needs and Preferences

Business travelers are a = diverse mix; however, they do share specific needs and tend to express similar desi= res and preferences related to business travel.

Needs Unlike leisure travelers, business travelers are required to “take their work with them.” The ability to stay in contact with the corporate office and clients is a necessity for business travelers, which means that they need internet access, cell phone reception, and business services at their hotel (Business Travel World, 2005). Business Travelers also count on efficient check-in services and reliable transportation. Lastly, security is a primary need, especially with the increase in female business travelers. In certain forward-thinking hotels, women business travelers are “offered the op= tion of a room on a floor just for female executives” (Lagace, 2005).

Preferences Busines= s travelers’ value comfort, cultural experiences, the opportunity to learn something or engage in a leisure activity, and the opportunity to bring their family alo= ng (Fearis, 2006). In addition, business travelers share common interests of leisure travelers such as shopping and good food. Executives need to feel rested to perform their work responsibilities at an optimum level, which is= why they prefer business-class flights, extra-comfortable beds, and efficient, expedient service. Among the amenities rated very or extremely influential = by business travelers are: Premium quality bedding, free high-speed internet access, free breakfast, and complimentary newspaper of choice (Yesawich, 20= 06).

Men v. Women There = are differences between the needs and preferences of male and female business travelers. The business-travel culture has been largely influenced by the n= eeds of men; however, with more women traveling for business, the travel industry has begun to take notice of their different needs (Lagace, 2005). According= to a survey conducted by New= York University, women business travelers don’t currently feel valued by the travel industry (2003). With women comprising 40 percent of business travelers, it is cruci= al to address their unique preferences. At a 2005 travel conference, Jenifer Zeigler of Holiday Inn Express stated that female business travelers want softer towels, bigger baths, and different amenities. “Instead of goi= ng to the hotel bar, maybe they’d like a place where they can grab a sal= ad and a glass of wine; a place where they can do some business or read a book,” Zeigler said. She went on to comment that, “when you’re a business traveler, you really try to take advantage of perso= nal time in a foreign country” (Lagace, 2005).

Needs Exhibited by Business Tr= avel Market

With the innovation of te= lecommunications, many business meetings can be conducted via the internet (Stoller, 2006). However, many functions of business cannot be successfully performed in the absence of a physical meeting. The need for conventions and person-to-person business meetings is still strong and these meetings are likely to take pla= ce in vacation-like settings such as Hawaii= , The Caribbean, Jamaica, Florida, and Mexico. While routine business travel may have declined due to the innovation of web-broadcast meeting methods, specialty business travel has maintained, and possibly even increa= sed its market share.

U.S. International B= usiness Travel Statistics Approximately 7.8 million people traveled internationally to conduct business in 2005. Seven percent of those travele= rs visited South America, 2 percent visited Jamaica and 9 percent visited= The Caribbean (International Destinations of American Tourists, 2005). Hawaii reported that just over 650,000 business travelers visited during 2005. This number is up nearly 23 percent from the previous year. The report divided business travelers into two grou= ps: U.S. East and U.S. West. The groups were approximately equal, with 46 percent= of the visitors being from the East Coast and 54 percent from the West Coast (= Hawaii Department of Business, Economic Development, and Tourism, 2006).

Behavior of Competitors – Growth Many prominent companies in the hotel and travel industry= have embarked on new projects and campaigns to appeal to business travelers. Business Travel News reported in 2005 that The Ritz-Carlton, Four Seasons Hotels & Resorts, Mandarin Oriental Hotels a= nd other deluxe chains plan to establish resorts in more remote and exotic are= as to target upscale business travelers (Serlen, 2005).

Influence of Social Connection= s

Business travelers are well-educated, successful, and outgoing professionals (American Way, 2006). They may be in middle to upper management positions, experts in their field, or even CEO’s. They typically have a strong network of professional colleagues and coworkers (Forbes Traveler, 2006).

Colleagues/Peers The experience of other professionals is passed on through word-of-mouth. Predictability and reliability are key factors for business travelers, thus, their travel decisions may weigh heavily on the advice and experiences of t= heir colleagues or peers (Booker, 2006).

Family While family members cannot always directly influence the location, companies that are trying to please their employees may take familial needs into consideration when choosing a business meeting location. This is especially true if the business meeting is aimed towards rewarding employees.

Influence of Personal Factors<= o:p>

Business Travelers are of= ten wealthy and educated, which translates into refined tastes and the desire t= o be indulged while they travel.

Professional Status Business Travelers have reached a point in their life where they are comfortable mak= ing decisions and likely accustomed to being in a “power position.” They live a fast-paced life and value efficiency and comfort. For these reasons, business travelers are likely to prefer locations that not only kn= ow their wants and needs, but have the ability to meet them. A travel destinat= ion must be modern (both sanitarily and technologically), hotels must be well-staffed with English-speaking employees, and transportation must be efficient.

When, Where, and How Often Cus= tomers Buy

According to Melodie Hans= en, business travel agent for Montecito Travel in Santa Barbara, there is not so much of a “busy season” for business travel as there is an “off-season.” Business Travelers do not travel near= ly as often during the summer because they are taking personal vacations. In addition, business travel slows towards the end of the quarter due to compa= ny budget constraints. Looking at her records for 2005, Ms. Hansen reported th= at January was the busiest month for business travel (Hansen, 2006).

Online Purchases Ac= cording to The Office of Travel and Tourism Industries, 30 percent of business travelers use their computer as a source of information and 18 percent actu= ally book their trip online (2005).

Travel Agencies The computer has become a popular source of travel information and is increasin= gly used to book business travel; however, agents are still the primary source = of information for business travelers. A survey conducted by the Office of Tra= vel and Tourism Industries reported that 39 percent of business travelers consu= lt a travel agent when planning a trip. In addition, 40 percent of business travelers actually book their trip through a travel agency (2005).

Frequency Business travelers are rewarded by traveling often and there are many incentive prog= rams through various airlines and hotel chains. According to the National Busine= ss Travel Monitor, 46 percent of business travelers belong to one or more frequent-flyer programs (2005).

Suggestions for Integrated Mar= keting Strategy

To be successful, we must= answer to the primary needs and preferences of business travelers and present Punta Del Este as the premier location for business travel. We must communicate that Punta Del Este is a place where b= usiness travelers are catered to; a place where they can have an exotic experience = while conducting business; somewhere they can feel safe; a place where they can l= earn something new, experience foreign cuisine, and unwind after a long meeting = by playing a sunset round of golf or going on an scenic coastal drive. We must promote Punta Del Este as the perfect tropical destination for work and play. We must appeal to the corporate decision-makers by promoting the work-friendly atmosphere of Punta Del Este and the favorable exchange rate. We must appeal to spouses by promoting hotel amenities, day tours, shopping, and recreational activities= . Lastly, it is imperative that we communicate these messages to our target audience through as many marketing channels as possible.