Tourism is a vast industry that encompasses various types of markets. Understanding the different types of markets in tourism is crucial for businesses to Target their marketing efforts effectively. In this article, we will take a closer look at the various types of markets in tourism.
Domestic Market
The domestic market refers to the tourists who travel within their own country. This market segment tends to be significant for countries that have a large population and diverse geography. For instance, India’s domestic market is vast due to its large population and diverse cultural heritage.
Key features of the Domestic Market:
- The tourists are familiar with the local culture, language, and customs.
- They tend to travel during national holidays, weekends and school breaks.
- Their travel decisions are influenced by factors such as affordability, distance, safety, and convenience.
Inbound Market
The inbound market refers to foreign tourists who visit a country. For tourism-dependent countries such as Thailand, this market segment is crucial for their economy. The inbound market can be further divided into different sub-segments based on the tourist’s purpose of visit such as leisure, business or education.
Key Features of Inbound Market:
- The tourists are unfamiliar with the local culture, language, and customs.
- Their travel decisions are influenced by factors such as destination image, safety, political stability and visa regulations.
- Inbound tourists tend to stay longer than domestic tourists and spend more money on accommodation, food and shopping.
Outbound Market
The outbound market refers to residents of a country who travel abroad. This market segment tends to be significant for developed countries with high disposable incomes such as the United States and Japan.
Key Features of Outbound Market:
- The tourists are familiar with the local culture, language, and customs.
- Their travel decisions are influenced by factors such as destination image, affordability, visa regulations and safety.
- Outbound tourists tend to stay longer than domestic tourists and spend more money on accommodation, food, and shopping.
Special Interest Market
The special interest market refers to tourists who have a specific interest in a particular activity or theme. This market segment is becoming increasingly popular due to the rise of niche tourism products such as adventure tourism, wellness tourism and cultural tourism.
Key Features of Special Interest Market:
- The tourists have a specific interest in a particular activity or theme.
- Their travel decisions are influenced by factors such as the availability of activities related to their interests, accessibility and safety.
- Tourists in this market segment tend to spend more money on specialized tours, activities and accommodations that cater to their interests.
Conclusion
In conclusion, understanding the different types of markets in tourism is essential for businesses to Target their marketing efforts effectively. Each market segment has unique characteristics that influence tourist behavior. By identifying these characteristics, businesses can tailor their products and services to meet the needs of each market segment effectively.