Marketing in the NTU student travel market

Abstract

This report was motivated by the authors' curiosity regarding the marketing effectiveness of travel agencies in positioning themselves in the $4.4 million NTU student travel market. Four travel agencies operating in this market were selected to be the research subjects for this study. They were the two market leaders, Chan Brothers Travel Pte Ltd. and Ken-Air Tours Pte Ltd., and two active niche players, namely Destinations Holidays Pte Ltd. and Transinex Travel & Tours Pte Ltd. Differences between the travel agencies' perceptions as to their images and positions in this market and those of NTU students were ascertained by a survey carried out during the NTU Students' Union Travel Service Travel Fair in October 1993. The statistical data compiled for this research were generated through the evaluation of nine important evaluative criteria of the respondents. These criteria were rated both by managers of the four agencies as well as a sample representative of the NTU student population. Factor analysis was used to reduce the collected data to three attributes; Image, Value and Destination. The effectiveness of the travel agencies' marketing strategies were evaluated based on these three attributes. Relative positions of the agencies based on them were then plotted on three-dimensional product space maps. In the conclusion of this report, recommendations based on the findings of this study and observations made during the Travel Fair were proposed to the agencies on possible changes and improvements to their marketing strategies. These proposals were made in the belief that they would help the agencies to move towards their ideal market positions.