2. Background Recent strong performance on both a domestic and overseas tourism o Overseas growth of 12 percent in value and 6 percent in volume (2013 v 2012) o Domestic growth of 7 percent in value and 2 percent in volume (2013 v 2012)

3. What is segmentation & why is it useful ? Segmentation is a process through which potential customers that display similar needs, motivations and characteristics are grouped together The most competitive destinations and businesses are the ones that understand who their best customers are, what these customers want to buy and how best to communicate with them

4. Our segmentation models The emphasis of new segmentation models is on customer motivations (think about it like this!) The same segment?

5. Our segmentation models New models emphasis is on customer motivations Rather than assuming that everyone who is of a certain age and social class want the same thing from a holiday, the new models look at why people take holidays and what they want to feel, both during and after that holiday

6. So let’s take a look at our best prospect segments… …and remember it is not about excluding anyone, rather focusing on the customers that hold the greatest potential

8. Domestic Segments Connected Families 23 percent of market Footloose Socialisers 15 percent of market Indulgent Romantics 14 percent of market

9. Connected Families Relatively young families, with parents in their thirties and early forties and children generally under the age of ten Family holidays are a special opportunity to spend quality time together as a family, creating memories to last a lifetime They are seeking a variety of things to see and do in a place that feels special (as long as they are doing things together they are happy) For the parents it’s all about their children being happy and enjoying themselves, making the most of the opportunity to really ‘be’ with their children

10. Connected Families – Key Behaviors They tend to plan and book their holidays well in advance (3-6 months) and do most of their booking online Average family breaks last between four and seven days and they are most likely to stay in hotels or holiday homes Rely heavily on hotel/accommodations websites, review websites, social media and personal recommendations when deciding on where to holiday and their choice of accommodation Share holiday stories and photos with friends and family on social networks

11. Footloose Socialisers On average in their late forties and well educated, they are made up of groups of friends that enjoy getting away and spending quality time together They believe that it’s good to go off the beaten track every now and again, try out different places, meet the locals and really get under the skin of a place They enjoy good food and drink and tend to be interested in the history and culture of the place they are visiting

12. Footloose Socialisers – Key Behaviors Footloose Socialisers tend to book their breaks closer to actually taking them On average their breaks tend to be for between one to three days and they demonstrate a stronger tendency to stay in holiday homes/rentals than other segments, although they are also likely to stay in hotels They tend to rely heavily on review websites, booking agent sites (OTAs) and personal recommendations when deciding on where to holiday and their choice of accommodation

13. Indulgent Romantics Although relatively broad in terms of age profile they are more likely to be aged between 45 and 64 They are interested in going to different places, particularly if they offer opportunities for shopping, pampering, enjoying great food and the little indulgences in life Their ultimate goal is to find the perfect, romantic hub for their holiday where they can soak up the luxury, reward themselves, be well looked after and reconnect with one another

14. Indulgent Romantics – Key Behaviors Indulgent Romantics are more likely than any other segment to book their accommodation well in advance; however they do also act spontaneously and may book at short notice if the right offer comes up They do most of their booking online and tend to rely heavily on hotel and booking agent sites (OTAs) when deciding on where to holiday and their choice of accommodation Although they actively research and review destinations and accommodation online they are not active users of social media

16. Social Energisers Easy Going Socialisers Nature Lovers Top Tenners Culturally Curious Great Escapers Spoil Us 7 - Tourism Segments © 2014 Arkenford Ltd

17. Global Segments Culturally Curious 32 million people Great Escapers 67 million people Social Energisers 45 million people Across the top four markets (GB, US, Ger, Fra) 145 million people

18. Social Energisers

19. Culturally Curious – Key motivations

20. Social Energisers:- Demographics Social Energisers over-index on the younger age groups They have a lower than average proportion of people in the older age groups Evenly split by gender Above average on adult sharing © 2014 Arkenford Ltd

21. Social Energisers:- Defining fun & Exci tement

22. Culturally Curious

23. Demographics This is an older age group segment (couples) – well educated – over 50 Time to spend (3 times more likely to stay longer) New Experiences Gentle exploration – get off beaten track Higher proportion of single adults and couples, fewer family groups Good Food Historic sites Cultural Events

24. Curiously Cultural They choose their holiday destinations carefully, they are independent 'active sightseers' looking to visit new places. They want to 'do a place' and are unlikely to return for sometime once they have visited it. They’re interested in all that a place has to offer and they want it to be authentic They love to discover history and always find ways of getting real insight. They like to feel that they have not only broadened their mind but also immersed themselves in a place.

25. Culturally Curious – Self-directed rich discovery

26. What Culturally Curious are prepared to pay for % of Holiday takers

27. Culturally Curious – Key Behaviors They will usually choose to stay somewhere with access to scenery and good walks - plenty to do and see (hotels, b&b’s, guesthouses) They are three times more likely to take long breaks than average but they also take more short breaks than average, both at home and overseas

28. Great Escapers

29. They are often couples, approximately 30 years old, some with babies or quite young children Great Escapers are on holiday for a break, to get physical with nature, and to reconnect with their partner They are more likely to take part in slightly more strenuous activity, but not extreme They are seeking to rebalance and take stock of their lives, concentrating on what’s important to them Most importantly, Great Escapers want to come home refreshed and revitalised, their batteries recharged

30. Great Escapers – Key Behaviors They are likely to take more short breaks than the average visitor and Ireland offers plenty of what they’re looking for Although relatively light users of social media they do rely heavily on the internet for gathering information It’s important that “getting away from it all” is easy– they want the ‘wow’ factor without too much effort

31. Taking action

32. Taking Action – Key Steps Identify the segments most relevant to your business Fine tune your product to make sure it is inline with key customer motivations Package experiences that will resonate and appeal to your target segments Communicate what you have to offer in a way that is motivating and relevant Make it easy to buy!

33. www.failteireland.ie

34. Thank you