Characteristics of the Visiting Friends and Relatives Markets in Prince Edward Island: A Longitudinal Approach
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1 Characteristics of the Visiting Friends and Relatives Markets in Prince Edward Island: A Longitudinal Approach Melissa MacEachern, Dongkoo Yun Roberta MacDonald & Sean Hennessey Tourism Research Centre, School of Business Administration University of Prince Edward Island, Canada 38th TTRA International Conference, Las Vegas June 17-20, 2007
2 OUTLINE BACKGROUND The Study Purpose METHODOLOGY Data Source Sample Variables Data Analysis RESULTS Types of Visitation Accommodations Party size Trip duration Expenditures Activities DISCUSSION
3 BACKGROUND Tourism marketers and researchers realize the VFR markets importance and economic benefits. (Lehto, Morrison & O Leary, 2001, Paci, 1994, Seaton & Palmer, 1997) Prior studies have found that VFR travellers have unique characteristics requiring unique marketing efforts. (Morrison & O Leary, Moscardo, et. al, 2000)
4 BACKGROUND Previous research has argued complexity of the markets (hybrid travel): misunderstanding of the concepts issues in domestic vs. international short-haul vs. long-haul VFR and difficulties in promoting the market. (King, 1996; Seaton, 1994) Prince Edward Island under researched and underestimated VFR travellers, as compared to other pleasure markets.
5 BACKGROUND Size 2,200 square miles Warmest waters north of the Carolinas Known for pristine, pink sandy beaches
6 BACKGROUND Canada s smallest province Population 138,632 Visitation currently exceeds 1.3 million visitors (TPEI, 2006) Tourism has been relatively flat
7 BACKGROUND Traditional industries fishing and farming tourism is the 2nd largest industry. Known as the million acre farm Home to Anne of Green Gables/LM Montgomery land of rubies, emeralds & sapphires.
8 The Study Purpose This study attempts to better understand VFR markets and provide some insights for tourism planning and marketing. Thus, the purpose of this study is to identify characteristics of the VFR markets by comparing the differences between VFR and general pleasure travellers.
9 Data Source METHODOLOGY Prince Edward Island s Tourist Exit Survey Data Sets were measured over the 5 year period from 2000 to 2004 Overnight Pleasure Travellers VFR vs. Pleasure
10 Sample Year Total Number of Cases Overnight Pleasure Trips VFR Pleasure , (16.5) 1,802 (83.2) , (17.8) 2,554 (82.2) , (16.5) 2,662 (83.5) , (15.1) 2,588 (84.9) , (18.3) 2,563 (81.7) Total 16,640 2,472 (16.9) 12,169 (83.1)
11 Variables To identify characteristics of VFR markets in Prince Edward Island, Trip-related variables were used including: Types of Visitation (First Timer vs. Repeat Visitor) Types of accommodation used Party size Trip duration Expenditures Activities
12 Data Analysis This study employed a longitudinal approach- a series of data was used and the units of study observed or measured at more than one point in time, possibly repeatedly, and developed over time. Chi-Square analyses and T-tests were conducted to compare general pleasure visitors to those who visited friends and relatives.
13 RESULTS Types of Visitation 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Pleasure first-time Pleasure repeat VFR first-time VFR repeat
14 Types of Visitation VFR s repeat visitors accounted for 75.3% to 84.2%, while the first time pleasure travellers accounted for 50.5% to 54.7%. Not surprisingly, VFR market has the highest ratio of repeat visitation.
15 Types of Accommodation used Pleasure visitors prefer hotel/motel/resort (39% - 42%), followed by cabin and cottage (18% 21.4%) and then camping (16.6% 19%). VFR overwhelmingly favour the homes of friends and family (48.4% 62%), followed by hotel/motel (12.2% 17.5%) and cabin/cottage ( %).
16 Average Party Size Party Size Year VFR Pleasure
17 Days Trip Duration Year VFR Pleasure
18 Travel Expenditures $ $ $80.00 $60.00 $40.00 VFR Pleasure $20.00 $
19 Travel Activities Pleasure travellers engage in more diverse activities: More likely to partake in a variety of cultural, historical and nature-based activities VFR travellers were more likely to engage in: Boating (on-water activities) Golf Shopping Participating in a sporting event
20 DISCUSSION Repeat visitation much higher for VFR markets (45% total pleasure vs. 75.3% for VFR) VFR stay predominantly at the homes of friends and relatives, pleasure at hotels/motels/resorts. Both frequent cabins/cottages. VFR party size is smaller and expenditures are lower. Trip duration is much longer.
21 DISCUSSION VFR market trip duration appears to be in decline need to validate and rationalize. Is there a correlate with repeat visitation? Pleasure visitors expenditures are increasing and have fewer variances. Repeat visitation (with high correlates to VFR) requires very different marketing approaches.
22 DISCUSSION Specific research into the VFR market could assist in developing WOM strategies and approaches. Pleasure visitors represent higher yield with fewer nights spent significant opportunity to increase ROI. Pleasure visitor market must be segmented in a measurable and meaningful manner.
23 THANK YOU. Comments or Questions?
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