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THE RATIONALE OF MARKET RESEARCH

Market research is defined as the systematic design, collection, analysis, and report of data and findings
relevant to a specific marketing situation a company is facing. It provides detailed insights into the competitors
and understands the customers’ pain points (real problems) and preferences, latest market trends, consumer
buying patterns, economic shifts, and demographics. Tour operators, travel agencies, and other travel
businesses may use these insights as leverage to create effective strategies.
Market research monitors the effectiveness of sales, the existing business practices, the quality of services,
and the tools used for communication. It also assesses the current market competition by evaluating the
business plans of competitors. Tour operators use this to practice gathering and analyzing data about their
market. It allows them to act based on real data rather than assumptions making it a crucial element of their
respective business strategy. These are the following benefits of conducting market research:
• It understands the target market better. Market research can help tour operators and travel agencies
map out the full profile of their target market, as well as gain knowledge and valuable insights on their
market’s buying habits, age, location, gender, and income, which can help them come up with
effective, tailored marketing and pricing campaigns.

• It helps gain knowledge about competitors. Conducting market research can help tour operators and
travel agencies assess the market to identify who the key players are and who are on the rise. By
understanding and gaining knowledge on competitors, they can figure out which business strategy will
give them leverage on the market.

• It allows testing the product or service before being exposed. Through market research, tour
operators and travel agencies may opt to experience their package holidays before being exposed and
launched to the market and consumers. By doing this, companies can lessen the risk of providing
package holidays to the wrong market.
• It helps tour operators and travel agencies with their business growth. Market research helps tour
operators and travel agencies comprehend the demands of their market, detect more business
opportunities, plan an efficient marketing campaign, minimize their business losses, and keep track of
the competition. It allows them to classify their objectives while following the current trends and take
advantage by reaching out to their target market.
In summary, market research provides companies with relevant information that can help them identify and
analyze the market’s needs, the market itself, and their competitors. Processing and analyzing the information
obtained through market research provide them with relevant knowledge based on which they can make
better decisions on the development of a product or service. The knowledge generated through market
research is therefore classified into the content areas of making, enabling, or keeping a promise.

CUSTOMER NEEDS AND WANTS

A need is a conscious feeling of deprivation in a person. In other words, it is something that a customer requires
to experience satisfaction. In the case of business travelers, the punctuality of service is a good example of
what constitutes a need. In contrast, an airline failing to provide a high standard of punctuality may likely lose
business to its competitors. Guests or clients may expect to have breakfast, Wi-Fi or Internet access, a fitness

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center, and car parking facilities in a hotel. They may also demand accessible rooms if they have reduced
mobility.
Not every customer requirement can be put under the heading of a need. For example, a warm and friendly
attitude on the part of the cabin staff, though pleasant, cannot be said to have a crucial influence on the
traveler’s choice of an airline. It should, therefore, be classified as a want rather than a need. Wants are highly
significant in marketing today because, in many markets, airlines can meet customer needs the same way as
that of their competitors. On many routes, passengers fly similar aircraft and could notice that several airlines
offer similar timetables and punctuality records. In such situations, the customers’ choice of airline is
frequently based on less significant wants.
A want turns into a need after being influenced by culture, society, and an individual’s personality. For
instance, business travelers appreciate the product feature of a separate class of service on-board. Business
passengers who have the option to travel in separate dedicated cabins with a peaceful environment, (such as
being away from other passengers) where they can rest or work is an example of wants.
In order to comply with the needs and wants of the customers, understanding the types of travelers (as shown
in Table 1) is important (Camilleri, 2018).
TYPES OF TRAVELERS
Short-haul Long-haul
Independent Corporate Business Leisure
Needs • High frequency of service (e.g., convenient • Comfortable seats and • Hassle-free scheduled
local airport) legroom flights
• Suitable flight schedule • Substantial (large • Cheaper plane tickets
• Flexible seat accessibility enough to satisfy
• High standards of punctuality hunger) meals
• Ease of ticket cancellation and rebooking
Wants • Extra features of a • Extra features of a • In-flight services (e.g., • Safety and security
product or service product or service entertainment facilities) • Pleasurable inflight
as long as it is free in exchange for a • Safety and security services
of charge fee as long as it
can make their
travel experience
more convenient
Table 1. Assessing the customer’s needs and wants
Source: Travel Marketing, Tourism Economics and the Airline Product: An Introduction to Theory and Practice, 2018. pp. 32–33

The examples in Table 1 are merely applicable to travelers traveling by air, but these are similar to travelers
traveling by land or sea. They will always look forward to a convenient and pleasant experience and getting to
their destination safe and secured.
Asking leading questions is one way of understanding the needs and wants of the customers. Listening
attentively to the customers may give tour operators a better grasp of how interested customers are on a
product or service. Being friendly and empathetic are ways to make customers feel that they are welcome,

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acknowledged, and appreciated. Because of these, customers are not likely to think that money is the
company’s highest priority; instead, it is the passion and dedication of the company to the travel business.

THE MARKETING RESEARCH PROCESS

Marketing research is the process of finding out about the market in which the firm or company hopes to
succeed. It is also assessing all aspects of the firm’s marketing strategies and tactics.
Marketing managers research data to personalize their products or services to their customers. For instance,
the guests of ABC Tours may have their own set of needs and wants similar to that of leisure travelers.
However, ABC Tours could also have business travelers and short-haul travelers who have different needs and
wants. Therefore, relevant market research can help the agency in acquiring insights on its guests and their
preferences. Through this research, the front liners are equipped in delivering appropriate customer service
to match the guests’ profiles. This, in turn, may contribute to providing the guests with total customer
experience.
There are different stages in marketing research, as shown in Figure 1 (Camilleri, 2018).

Developing Implementing
Defining the
the research the research Interpreting and
problem and
plan for plan (Collecting reporting the
research
collecting and analyzing findings
objectives data)
information

Figure 1. The Marketing Research Process

Source: Travel Marketing, Tourism Economics and the Airline Product: An Introduction to Theory and Practice, 2018. p. 34

1. Defining the problem and the research objectives is the initial stage of the marketing research process.
This is where the research problem and the research objectives can be identified. Market researchers
should decide what form of information they would require.
• Exploratory research gives an insight into problems that are in the preliminary stage of
investigation. It helps the marketer better define the problem and hypothesis;
• Descriptive research is used to describe the characteristics of a population or phenomenon being
studied. It could reveal information on the market potential, demographics, consumer attitudes,
and so on. It allows researchers to test a hypothesis about cause and effect relationships.
2. Developing the research plan for collecting information is where the designing of the research plan takes
place. This involves the following:
a. Specifying the type of data to be collected and the sources from which these may be collected
b. Determining the methods to be used for data collection
c. Deciding whether to use random or non-random samples
d. Calculating the time and cost of research
Researchers may collect primary and/or secondary data. Primary data consists of pieces of information
which are not presently available but needed to deal with the issue/s under investigation. Secondary

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data consists of existing information that may be used for the problem at hand, although not originally
gathered for this purpose. These data may be gathered from internal sources such as booking data and
fare type analysis or external sources such as data compiled by government sources, airport authorities,
consultant reports, and the chamber of commerce reports.
Marketing research techniques refer to the different techniques that may be used for data collection
purposes, which are as follows:
• Survey questionnaires allow researchers to gather information with a considerable level of
accuracy at an affordable cost. These are a vital element of market research and should be
skillfully and intelligently constructed. The questions must elicit information that researchers seek
to know or understand.
• In-flight survey is a data collection method used in the aviation industry. It aims to understand
the customers’ feelings toward product specifications—for instance, seating comfort, quality of
meals, and other airline services.
• Face-to-face interviews and focus group meetings are where researchers explore the informants’
reactions, opinions, and behaviors. The findings from this technique may give an insight into
existing trends.
• Telephone interview is a good way of accessing research participants. It is often perceived as a
way to invade one’s privacy, however, which may damage the corporate image of a company.
• Test marketing is a remarkably versatile market research technique. It may be a costly exercise
and may lead to confusion among travelers, especially if new product features are discontinued
at the end of the testing period. For instance, ABC Tours is considering to launch a 3D/2N Siargao
Package. The agency plans to open its newest package holiday to select tourists for a short period
before officially considering it as one of its package holidays.
The first impression, reaction, and feedback from the select tourists who experienced a particular
package holiday will all be recorded for researchers to subsequently analyze and interpret.
Depending on the result, the agency will then decide whether to add it to their package holidays
officially or move on from the project.
• Complaints and complaint analysis is a valuable and simple indication of customer dissatisfaction
on the businesses’ existing products or services. A consistently high frequency of complaints is a
clear indication of customer argument on certain aspects of the business. Respective businesses
must operate a system for classifying complaints and compliments before being implemented.
• Customer contact staff refer to the sales and customer service staff who provide a company with
first-hand information on the customers’ feelings toward its products and services. They are the
bridge that connects the customers to the management or the company itself.
• Desk research involves the analysis and interpretation of available data. This market research
technique is considered practical and provides fast results, but the changes in the marketing
environment should also be taken into consideration.
3. Implementing the research plan (collecting and analyzing data) is known as the most expensive part of
the marketing research process. Typically, data collection begins by reviewing any existing research and

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data that provide information about or insight into the problem. As a rule, this is secondary research.
Prior research projects, internal data analyses, industry reports, customer-satisfaction survey results, and
other sources of information may be worthwhile to review. Even though these resources may not answer
research questions fully, these may further make the problem to be solved easier.
Secondary research and data sources are nearly always cheaper than capturing new information alone.
After exhausting everything from secondary research, the next thing to do is to conduct primary research.
This involves asking questions and then listening to and/or observing the behavior of the target audience
being studied. In order to generate reliable, accurate results, use the proper scientific methods for
primary research data collection and analysis. These include identifying the right individuals and the
number of people to talk to using surveys and interview scripts and capturing data accurately.
4. Interpreting and reporting the findings are where marketers interpret their findings. Interpretation is
easier if the data analysis methods are carefully planned in the research process. How the data gathered
is analyzed and presented is an influential factor in how valuable the research will be. These findings will
be analyzed and interpreted by the researchers and will be presented to the respective marketing
managers. It is important that the researchers will be in a position to understand the main findings and
research implications.
Individuals who are knowledgeable of the business should be involved in interpreting data because they
are in the best position to identify significant insights and make recommendations from the research
findings. Marketing research reports incorporate both the analysis and the interpretation of data to
address the project objectives. The final report for a marketing research project may be in written form
or in a presentation format, depending on the organization’s culture and management preferences.

References:
Camilleri, M. A. (2018). Travel marketing, tourism economics and the airline product: An introduction to theory and practice. Cham,
Switzerland: Springer.
Claravall, B. G. (2013). Travel and tour operations in the Philippines. Sampaloc, Manila: Accumiro I.T. Solutions.
Holland, J. & Leslie, D. (2017). Tour operators and operations: Development, management and responsibility. Boston, MA: CABI.

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