Segmenting Markets by Bagged Clustering: Young Chinese Travelers to Western Europe.

Abstract

Market segmentation is ubiquitous in marketing. Hierarchical and nonhierarchical methods are popular for segmenting tourism markets. These methods are not without controversy. In this study, we use bagged clustering on the push and pull factors of Western Europe to segment potential young Chinese travelers. Bagged clustering overcomes some of the limitations of hierarchical and nonhierarchical methods. A sample of 403 travelers revealed the existence of four clusters of potential visitors. The clusters were subsequently profiled on sociodemographics and travel characteristics. The findings suggest a nascent young Chinese independent travel segment that cannot be distinguished on push factors but can be differentiated on perceptions of the current independent travel infrastructure in Western Europe. Managerial implications are offered on marketing and service provision to the young Chinese outbound travel market.