Market Segmentation

Why is market segmentation used?

Market segmentation is a crucial tool that allows a population to be divided into groups of
people with similar characteristics. It allows the needs and wants of each of these Publication Information
‘segments’ or groups to be better understood and products can be customised and targeted
Prepared by
to groups that display the most purchasing potential. Companies gain a better return on England Research
their investment by using this consumer-led marketing technique rather than randomly 26th January 2005
marketing a product to the general population.

How are markets normally segmented?

Customers can be segmented in a variety of ways, such as by socio-demographic
characteristics (age, sex, social class), life stage (SINKS, DINKS, families, empty nesters)
or location. The widely used ACORN model, for example, uses census data to classify
people according to the area or neighbourhood in which they live and consists of 43 distinct
consumer types. In addition, demographic information such as age, race, income,
education, employment, product preferences and media contact is also used to help define
these clusters. MOSAIC is another geodemographic classification system that uses similar
variables to distinguish between 60 segments that collectively make up 12 groups.

Segmentation can also be based on consumer behaviour, which requires activity data in
order to predict future activity and behaviour. Psychometric data, based on personality
statements, can aid segmentation as well by identifying what type of person someone is
and how they would respond to specific sales strategies, for example.

What kind of segmentation is England Marketing using to target its

domestic customers?
England Marketing recently decided to undertake some research on how to segment the
British population and determine which people would be the most responsive to domestic
tourism campaigns. But segmenting the market solely by location, life stage or socio-
demographic characteristics was insufficient. Would the fact that someone lived in an NW1
postcode or had two children really predict their ability or willingness to take a holiday in
England? This type of segmentation is too stereotypical for tourism purposes, failing to
account for individual preferences, values and experiences that will affect holiday
purchasing behaviour.

Behavioural segmentation also seemed to fall short due to its instability and difficulty in
predicting future behaviour. It only relates to one specific product and point in time and so
segmentation would no longer be valid if changes in brand or activity occurred.
Psychometric segmentation could be useful in understanding a customer’s values but often
fails to account for differences in life circumstances.

The ArkLeisure model proposed by Arkenford, a market modelling and research company,
solved the dilemma by providing a system that is based on people’s core values and
definitions of quality. A value-based segmentation has many advantages. Values do not
change (or only change very slowly) throughout a person’s life and can provide a more in-
depth understanding of consumers. Values or beliefs shape people’s needs, which in turn
shape their behaviour. Value-based segments will differ in their brand choice, behaviour,

© VisitBritain 2004
life styles, leisure activities and interests and so a deeper understanding of their purchasing
behaviour, propensity to travel and general views on life can thus be gained.

The additional benefit of this model is that it also takes life circumstances and purchasing
situations into account. Customers make travel decisions depending on whether they meet
both their aspirations and their practical requirements, so it is imperative to acknowledge
these separate variables. A person’s priorities may change depending on what type of
holiday they are planning but they will always remain in the same value segment.

Because the system is not based on predicting a specific set of purchases, it is also more
flexible and can be applied across a wider set of tourism markets, a specific destination or
an individual product group.

How does the model work and why is it beneficial to England

Marketing?

The ArkLeisure model consists of three main elements: aspirations (value statements that
identify segments and are made on the basis of quality judgments), life factors (life stage,
income, etc) and purchase scenarios (preferences, perceptions, suitable accommodation,
purchase drivers, satisfaction with choices made, purpose of trip, etc). In order to define
people’s aspirations and therefore segment them into different groups, their values are
measured in relation to two key dimensions: the extent to which they embrace or resist
innovation and the extent to which they are influenced by mass culture and peer pressure.
Willingness to pay for different services and products is also considered, as this is clearly
related to individual values. By using this information, the system is able to divide the UK
market into eight value-based segments: Cosmopolitan, Discoverer, High Street, Style
Hound, Traditional, Functional, Habitual and Follower.

The chart above depicts each of the segments and the percentage of the British population
they represent. These groups will be described later in more detail.

England Marketing needed a model such as this in order to better understand consumers’
needs, motivations, holiday-taking patterns, attitudes towards England as a destination for
main holidays and short breaks, and their awareness and responsiveness to the England
brand. The ArkLeisure model works well for England Marketing because it reveals what
customers look for in a holiday, what types of messages they will respond to and the most
efficient methods of communicating with them. It also reveals how customers’ priorities and
product choices will change under different purchasing scenarios, such as when planning a
long family holiday or a short romantic weekend away.

England Marketing decided to focus its marketing efforts on three of the eight segments
from ArkLeisure’s segmentation model: Cosmopolitans, Discoverers and High Streets.
This decision was based on the fact that these groups are the most active in the UK short
break market and are most likely to be influenced by the England marketing message. The

© VisitBritain 2004
graph below displays the number of short breaks that each segment takes in England on
average.

Together, Cosmopolitans, Discoverers and High Streets represent 50% of the British
population, take 55% of short break holidays and contribute 57% of spending on English
short breaks. They also account for 61% of overseas short breaks and 64% of overseas
short break spend by British residents. By concentrating marketing efforts on these
promising segments, England Marketing can develop relevant products, communication
and media channels that are specifically targeted and will provide the best return on
investment. The following sections provide more detailed information and insight into each
of these three core segments.

COSMOPOLITANS
Core Values Core Values
These people are independent, active risk-takers who seek both intellectual and physical
challenges. They enjoy trying new things and experiences, especially with regards to
technology, and have an appreciation of art and culture. Their personal interest in new
products will drive them to purchase rather than any fashion trend. Value and functionality
are crucial to their purchases, although they are high-spenders who will buy expensive
products if it provides the experience they are looking for. Individuality is more important to
them than following fashion but they are happy adopting traditional values when they feel it
is appropriate. They lead a full and active life, but relaxation and peace are still valued at
certain times. Holidays and short breaks often provide a time for ‘living’ outside of their
normal, busy routine.

Market Size and Lifestage

Cosmopolitans make up 15.2% of the population and they have the highest ethnic
representation of all segments (18%). They are relatively young (over 40% are under 35),
however the mean age is 42 and there is good representation across most age bands.
38% are post family, 34% with family and 28% are pre family. The segment is
predominantly C1, although a quarter is classified as AB. The average income is £26k (the
highest of all segments) and a high proportion live in London, with the remainder living in
the South East and West Midlands.

This group uses the Internet the most (for information rather than purchasing) and is very
active, taking an average of 10+ hours of exercise per week.

© VisitBritain 2004
Holiday Habits

Cosmopolitans are the most active segment and enjoy taking a range of holidays, including
package holidays, self-organised holidays, activity or themed holidays, bargain breaks, last
minute deals, holidays with an environmental theme or holidays that get ‘off the beaten
track’. They visit the widest variety of places, including cities, seaside resorts and the
countryside, but there must be an abundance of things to see and do wherever they go.
This group enjoys activities such as eating, drinking, clubbing, shopping, theatre, arts
entertainment, museums and galleries whilst on holiday. They enjoying trying new and
different activities and prefer to entertain themselves as long as there are things to do.

These people make up 21.4% of the Weekends Away market and 1 in 4 weekends away is
spent overseas. Cosmopolitans account for 21.6% of the Short Breaks market. They
favour city destinations, such as London or Paris, as well as scenic locations, such as the
Lake District, and take on average over 4 short breaks a year. They also make up 22.6%
of the Long Holiday market and even though only 1 out of 4 holidays is taken in England,
they are still the most likely group to holiday in England. The most appealing destinations
to this group are those that do not appeal to the mass market.

Short Break Triggers and Motivations

Cosmopolitans look to relax, de-stress and mentally recharge on a short break. Breaks
offer a ‘time for living’ and an escape from everyday pressures. They see short breaks as a
time of indulgence, a change of pace and an ‘experience’ that they can buy into. This group
enjoys taking short breaks in new areas and visiting new attractions or events, many of
which are often the motivation for travel.

When travelling with kids, breaks are normally triggered by school holidays. For those
travelling without kids, a break is often looked forward to as being a time away from the kids
and something that breaks up the year.

Cosmopolitans are inspired by communication and information, which can come via the
Internet, TV, literature or word of mouth. They are strongly influenced by editorial and are
also attracted by offers of ‘new’ experiences that will provide a break from everyday routine
life. They expect relaxation when on a break and so they will not pay extra for this. They
will however pay for the opportunity to do what they want, when they want.

DISCOVERERS

Core Values

Discoverers are independent of mind and are the least likely group to worry about what
others might think. They are not influenced by style or brand unless it represents the values
they are seeking. Function drives purchases rather than fashion. This group looks for
good service and value for money, but if the product suits their needs they are willing to
spend more.

Discoverers live a relatively relaxed pace of life. They enjoy intellectual challenges, but are
not as interested in pursuits like arts and culture.

Market Size and Lifestage

This segment makes up 12.8% of the market, with 5% representing ethnic minority groups.
Males account for 57% of the segment and the group is predominantly C1 with an average
income of £25k. Most Discoverers are under age 55 with the majority falling in the 26-35

© VisitBritain 2004
age range. 42% have children at home and a further 25% are post family. Discoverers
come from a variety of regions including East Anglia, North West, South East and Scotland.

Discoverers are the most active Internet users, with half of them making online purchases.
They enjoy activities such as sporting events, computer games, reading, listening to music
and comedy.

Holiday Habits

This group is more likely to take a bargain break or last minute deal than a package
holiday. They are also more likely to holiday off the beaten track and to show an interest in
activity or themed holidays. Discoverers are the most active day visit market but are less
likely than other segments to visit familiar destinations or those near family and friends.

These people make up 14.3% of the Weekends Away market and are three times as likely
to stay in England for a weekend rather than going overseas. Discoverers account for
13.8% of the Short Break market and overseas options are slightly more favourable than
English destinations. Some appealing short break destinations for this group include Paris,
Scotland, Wales and the Lake District. This group also makes up 11.3% of the Long
Holiday market. They are less active here and are four times more likely to go overseas,
such as to Florida, Australia, New Zealand or America.

They enjoy a mix of activities whilst on holiday such as sporting events, eating out,
museums, history and heritage, wildlife attractions and funfairs. They are more likely,
however, to support their local football team or go to a ‘gig’ than go to the theatre or opera.

Short Break Triggers and Motivations

Discoverers like to experience something new and different and are looking to ‘get away
from it all’ while on a short break. Some prefer peace and quiet as an antidote to the hustle
and bustle of everyday life. Rediscovery of places they have been or activities they have
done previously is also appealing, as is familiarity. They seek a variety of things to do in
order to satisfy the whole family and this often means that they prefer visiting towns and
cities rather than the countryside.

The underlying motivation for Discoverers to take a short break is price and perceived value
for money. The opportunity to spend time as a family is also a key driver for short breaks,
as are special deals and offers. Discoverers will often decide to travel if the price is right.
Celebrations and special events are key triggers for this group as well. Perhaps more
importantly, Discoverers are independent of mind and favour familiarity – thus if they find
something they know they like they will often settle for that option. The best way to target
this group is to offer them something that is different from their everyday life, is a ‘good
deal’ and is focused on family and spending quality time together. If they are satisfied with
the choices they make, they will return again and again in the future.

HIGH STREETS

Core Values

People in this segment are externally referenced and care about what others think. They
are fashion victims and value style over functionality and individuality. They will not
necessarily be the first to adopt a product but will happily follow along once a fashion has
been established. They will adopt products and services earlier than most other groups
and are willing to pay more in order to receive good service. High Streets are also
prepared to try new and different things, as long as they have previously been tried and
tested.

© VisitBritain 2004
High Streets are an active segment and are moderately interested in intellectual pursuits
such as arts and culture.

Market Size and Lifestage

This group accounts for 21.2% of the population and is the largest of all the groups. 15%
are from ethnic minority backgrounds and a large proportion (one third) live in London.
East Anglia also produces many other High Streets. This segment is predominantly ABC1
with an average income of £22k. The group is relatively young, with a quarter aged
between 26-35, but a wide range of ages is represented. 40% are post family, 32% with
family and 28% are pre family.

High Streets are high Internet users, with over 40% making online purchases. They are
physically active, taking 5+ hours of exercise per week, and enjoy activities such as
cinema, theatre, music and comedy.

Holiday Habits

High Streets are most likely to be attracted to bargain breaks and familiar destinations and
are not likely to take an activity or themed break or to venture off the beaten track.
Although last minute deals and package holidays could help save them money, High
Streets find it difficult to fit them into their schedule and are more drawn towards bargain
breaks.

This active segment makes up a significant 24.2% of the Weekend Away market and 2 out
of 4 weekends away are taken in England. This group also accounts for 19.9% of the Short
Break market, with their destination choice split equally between England, Scotland/Wales
and overseas. European city breaks, English city breaks and UK rural destinations are
short break favourites. High Streets represent 24.2% of the Long Holiday market and are
the third most active group. Although they are the second most likely group to take an
English holiday, they are almost three times more likely to choose an overseas option, such
as Australia, Florida, US, Canada or Spain, for a long holiday.

This group enjoys a range of holiday activities but has a slight preference for daytime
attractions and activities rather than nightlife, probably due to family restrictions.

Short Break Triggers and Motivations

Like the other two segments, High Streets are looking for a break from their normal,
everyday routine. They are the least physically active group, but look for places where
there is a lot to do and where they have the choice to be entertained or pampered if they
desire. High Streets are interested in history, heritage, learning and education and are
attracted to larger cities, mainstream seaside destinations and well-known beauty spots.
They will travel to the countryside as well, but normally only tried and tested locations, such
as Cornwall. High Streets are most likely to follow the crowd in terms of trends and styles.

Special deals are often a key trigger, as money plays an important role in their choice of
short break. Families make up a large proportion of High Streets and so school holidays
trigger short breaks as well. These family groups look for the functional aspects in a
holiday, such as amenities with a certain level of quality standards. The older members of
this segment are more adventurous and willing to try new experiences, but these are
normally tried and tested products.

Short breaks that offer relaxation and focus on the functional aspects are the most likely to
attract High Streets. They are also willing to try new things on a holiday, as long as the
price is right and they have been proven as popular choices.

© VisitBritain 2004
ALL SEGMENTS

Holiday Behaviour

Short Breaks

This market is balanced, with segments taking a relatively equal number of short breaks in
England and abroad. There is a slight preference, however, for overseas options,
especially amongst those who take fewer breaks. There are millions of High Streets who
do not even take a short break at all and thus it is imperative to convince this group of the
benefits of England and encourage them to take an additional break.

Overall, segments show the most interest in luxury breaks. Exploration is appealing to
Cosmopolitans and Discoverers, but touring and countryside alternatives are more
attractive than cities with regards to this theme.

Preferences vary enormously depending on why and when people choose to take a short
break. For special occasions, groups prefer short city breaks or luxury themed breaks. For
those with kids, the children appear to dominate the holiday choice and so luxury is rarely
an option. Many families prefer sun and beach options, although the countryside is also
very popular. Discoverers tend to be more adventurous and encourage their children to
explore and have new experiences.

For those getting away with a partner, exploration and the countryside are the most
appealing options. Touring provides an attractive holiday option during the winter months,
as does exploration. Adults taking a short break together are not attracted by the
countryside and in fact it is a turn-off for Discoverers. Nightlife is more important for adult
groups, although it is not a major factor. The adult groups that prefer overseas holidays (as
opposed to holidays in England) are more interested in exploration of cities and regions and
less interested in nightlife.

And finally, people may also choose to take a short activity break. Cosmopolitans prefer
music and arts festivals on activity breaks, while Discoverers and High Streets like visiting
attractions. Discoverers are less likely than High Streets to let the children make the
activity or destination choice. Hobby activity breaks are the second most popular option
amongst all groups except High Streets.

Weekend Breaks

Cosmopolitans are the most active group, but Discoverers are slightly more prepared to
take a holiday in England. High Streets provide an important market, although they are
much less likely than the others to take a weekend in England. Overall, people are twice as
likely to take a weekend break in England rather than abroad.

Long Holidays

Long holidays in England are only one third the volume of overseas long holidays. This
market is essentially the reverse of the weekend away trend and it will make it difficult to
change unless the benefits and offers in England are communicated efficiently. A possible
option is to repackage longer holidays in order to incorporate two distinct experiences in
one trip, such as city and countryside or adventure and luxury.

© VisitBritain 2004
Where do they go?

Towns & Cities

High Streets and Discoverers are most likely to visit smaller cities and towns. The
proportion of High Streets visiting smaller cities is highest and Discoverers are more likely
to visit market towns. Cosmopolitans and High Streets are most likely to visit major cities
for the bright lights and entertainment.

Countryside

High Streets visit all regions and Cosmopolitans are most likely to visit Wales, Scotland and
Cornwall. Discoverers are the least likely group to visit the North of England.

Seaside

Cosmopolitans are as likely to visit a remote beach as they are a mainstream seaside
resort. High Streets are twice as likely to visit mainstream resorts as any other type of
seaside destination. Discoverers also prefer mainstream resorts and are looking for resorts
that are young, fun and loud.

Other

Cosmopolitans tend to avoid crowds in general and are the least likely to visit obvious
beauty spots or to seek family entertainment. High Streets are the most likely to visit these
types of places and Discoverers find them appealing as well.

England Marketing’s Campaign Themes

The four main themes that make up the Enjoy England campaigns are Relax, Explore,
Discover and Experience. These themes were often brought up when discussing key
values for each of England Marketing’s core segments, but interestingly, these values hold
different meanings for each segment as is explained in the following sections.

RELAX

Cosmopolitans

Relaxation is seen as the overall objective or result of any good short break or holiday for
this segment. It is a sign of well-being and rejuvenation and can only be found by being out
of contact with a normal everyday routine. Cosmopolitans believe relaxation can be
obtained from remote, isolated and scenic locations, as well as through a variety of
activities. If seeking relaxation, this group would most likely take breaks where themes such
as ‘well-being’, ‘doing my own thing’, country cottage, canal boating and nature were
promoted. Rural destinations like Devon and the Cotswolds would be appealing.

Discoverers

This group sees relaxation as calm, tranquillity and freedom from a routine. It can be
obtained from within oneself or from others through socialising and being together with
family. Gentle activities, such as strolling and pony trekking, are seen as more relaxing
than intense, physical activity. Any destinations that provide a different environment from
home, such as the countryside and coast, are seen as relaxing. The key aspect of a
relaxing break for Discoverers is being pampered and spoilt, so they are attracted to

© VisitBritain 2004
themes like spas, health farms, luxury, well-being, dining out, local food and drink, pubs
and bars.

High Streets

High Streets, like the other groups, see relaxation as a break from everyday life.
Relaxation evokes a stereotypical picture of spas, health farms and being pampered and
spoilt. This group also associates relaxation with remote countryside, wide-open space and
gentle activities like boating and walking. In addition to traditional spa, luxury and health
farm themes, High Streets look for relaxation through activities like golf, boating, opera and
jazz.

All segments

In general, all three groups are well suited to the current Relax campaign, although more
emphasis could be placed on ‘escaping’ real life and everyday routine, as well as the peace
and quiet that can be found in the countryside. Cities, countryside and coast can all be
seen as relaxing destinations, however. Relaxation is a key value that all three segments
look for in a break and it can be provided in a variety of ways, such as through spas and
luxury accommodation, quality time with family and friends and being away from the
pressures of everyday life.

EXPLORE and DISCOVER

Cosmopolitans

Although they found it difficult to distinguish between the two themes, this group associates
Explore more with the act of physically visiting places or participating in activities and
Discover with learning, education, history and well-being. Cosmopolitans think Explore
breaks are more likely to have an outdoor or countryside theme, whilst Discover holidays
might include historic destinations and are likely to provide education, heritage or self-
improvement. Visits to market towns and villages are also included in the Discover
category by Cosmopolitans. Both themes are connected to new and different experiences.

Discoverers

Discoverers also found it difficult to separate the two values, but were more likely to
associate Explore with physical adventure and Discover with education and learning. This
group sees a strong connection between these values and the outdoors, countryside and
new or different experiences. This segment also sees Discover as being closely linked to
‘rediscovery’, or undertaking activities and experiences that they had not done for some
time. Discoverers think breaks featuring an Explore theme encompass history, heritage
and activities like walking, horse-riding, backpacking and touring, whilst Discover breaks
concentrate more on culture, museums, exhibitions and perhaps ‘rediscovering’ activities,
such as camping.

High Streets

High Streets were inclined to see each of these two values as the opportunity to try
something new or different. Like the Discoverers, they associate Discover with
rediscovering previous activities undertaken and Explore with extending or pushing
yourself. They see less of a link between Discover and education and learning, however,
than the other two segments. High Streets look for both of these values while on a short
break and associate them with natural or rural locations such as the countryside, villages or
market towns. Historic elements, such as churches, museums and castles are often part of

© VisitBritain 2004
these breaks. Explore and Discover values can also be found in city breaks, however,
which offer cultural activities and new or different experiences.

All segments

All groups found it relatively difficult to distinguish between Explore and Discover.
However, there was widespread appeal for some form of the Explore element, such as in
the countryside. Cycling seems to make exploring more attractive for the whole family and
individuals enjoy walking or strolling. Most types of destinations associated with Explore
have an outdoors focus. The key to ‘exploring’ is having the opportunity to see, visit or try
something new and different.

The Discover value probably has more overall appeal, since it focuses less on the physical
adventure elements and focuses more on education, learning and culture. Discoverers and
High Streets associate it with arts, culture, history and heritage and there is also the idea of
‘rediscovering’ places previously been or activities previously tried. The discovery of
something or somewhere new is essential for all these groups.

EXPERIENCE

Cosmopolitans

Cosmopolitans associate this value with memories, or something that creates memories. It
gives them something to tell other people about and it is often linked to adventure, physical
or cultural pursuits and activities that one might not normally undertake. Cosmopolitans are
more likely to value this aspect of a short break, rather than the functional features, but
found it difficult to specify what exactly defines Experience. Unusual accommodation, ballet
or opera themed breaks were cited as examples of something that would be memorable, as
were trips that involved local food and drink, pubs, bars, etc. The desire for happy
memories drives a short break ‘experience’.

Discoverers

Although this group chose family focused images to depict Experience, they actually
associate this value with trips that offer ‘new’ experiences rather than family related
activities. They associate Experience with TV movie locations, working holidays, education
and self-learning, all of which are very ‘new’ and ‘different’ to what this segment would
normally do.

High Streets

This group is very family focused and sees this value as providing happy family memories.
The types of break that can provide Experience are often family oriented, such as country
breaks, beaches and national parks. Some also see Experience as the opportunity to try a
new and different activity, such as ballooning, sailing or water sports. They see the
destination as being somewhere ‘different’ or somewhere they would not normally live.

All segments

Most groups associate Experience with memories. Normally, the more unusual, the more
memorable – and the happier the memories the better! There is a strong family connection
for all groups, as well as the idea of doing something new or different. Cosmopolitans in
general can associate more easily with Experience, while the other groups are more likely
to select holidays based on the functional aspects. All groups found it difficult to specify a
destination that depicted Experience, since it is normally people or events that trigger
memories rather than a place.

© VisitBritain 2004
Other Values

Special

The three segments all want to feel special on a short break, either through being
pampered and spoilt and having everything done for them, or being extravagant and doing
things they might not normally do.

Escapism

All groups want to ‘escape’ and get away from everyday life. This is often associated with
individuals who prefer to go away on their own.

A Change

Similar to escapism, this is a desire not necessarily for something ‘new’, but something that
is ‘different’ from everyday, normal life.

Freedom

This value relates to freedom of choice and the freedom to do things as and when you
want. The groups associate this value with a sense of timelessness.

The Five Remaining Value-Based Segments

As mentioned earlier in this report, the ArkLeisure model divided the British population into
eight value-based segments, three of which are targeted by England Marketing activity.
The remaining segments are described in more detail below.

Style Hounds

This group is very fashion conscious and strongly influenced by others. They are early
adopters and will buy out of the ordinary products in order to set the fashion. They are risk
takers who enjoy fun and excitement and will try new and different things. Style Hounds
enjoy activities like computer games, cinema, attending sports events and shopping and
also enjoy nights out that involve clubbing, drinking and live music. They are predominantly
young and make up 12% of the population. Two thirds are single and almost half are pre-
family.

Style Hounds are an active group and enjoy a range of holiday types, but prefer organised
package holidays and overseas options. They are just as likely to choose an overseas
option as they are to stay in the UK for a short break, but English destinations are not very
desirable. They are over 4 times more likely to go abroad for a long holiday.

Traditionals

This is a mainstream market whose members are self-reliant and hold more traditional
values. Brand is not a key purchase driver for them, although they are not brand-averse.
They prefer functionality to style, but still often choose products that are out of the ordinary.
Traditionals value good service and they are willing to pay extra for this. They live life at a
more relaxed pace and enjoy intellectual endeavours, arts and culture.

This group tends to visit familiar destinations and is more interested in bargain breaks than
last minute package deals. They are also more interested in taking weekends away in

© VisitBritain 2004
England than any other segment. For long holidays, Traditionals are more likely to travel
abroad than in England. Whilst on holiday, they enjoy visiting traditional attractions such as
museums, gardens, churches, historic sites and the theatre.

Functionals

This self-reliant group is resistant to spending and is not prepared to pay for fashion, style
or individuality. They will not pay extra for good service either, as this is expected.
Although they are not early adopters, they are interested in new experiences and trying
new things. Intellectual challenges, arts and culture are all appealing to Functionals.

This active day visit market tends to design holidays around the interests of their children
and is not very interested in themed breaks, last minute deals or package holidays. They
are five times as likely to stay in England for a weekend away as opposed to going abroad.
For long holidays, they are more than twice as likely to choose an overseas destination,
and for short breaks, they favour both English and overseas destinations. Whilst on
holiday, Functionals enjoy a range of activities including galleries, museums, churches,
gardens, sports events, theatre and arts.

Habituals

This group is the most likely to value a more relaxed pace of life. They are traditional,
resistant to change and make purchase decisions based on function rather than style.
They are not risk takers and will avoid new opportunities.

Habituals normally plan holidays with their children in mind and are likely to choose familiar
destinations, package holidays or bargain breaks rather than last minute deals. They are
not very interested in activity or themed holidays or those that are off the beaten track. This
group is the least active in terms of holiday-taking behaviour. Although their weekends
away and short breaks are few and far between, they prefer English destinations as
opposed to overseas options. They are also the least active whilst on holiday and enjoy
activities like visiting churches, gardens and the local shops.

Followers

As their name suggests, these people are strongly influenced by others and do not take
risks. They avoid buying ‘old-fashioned’ products but at the same time do not value new
and fashionable options. They will, however, try something that is new to them as an
individual. This group lags behind other markets when it comes to trying new products and
services and they hold little interest in intellectual pursuits, arts and culture.

Followers are not a very active group in terms of holiday activity, but this may be due to
income restrictions. They are most likely to visit familiar destinations and are also attracted
to bargain breaks and last minute deals. They are more likely to stay in England and the
UK for a weekend away or a short break, but are three times more likely to go abroad for a
longer holiday. Followers tend to select family focused holiday destinations and enjoy
activities like wildlife attractions and eating out.

Conclusion
By adopting a market segmentation model that addresses people’s core values and life
circumstances, England Marketing has been able to gain a much deeper understanding of
its customers and their propensity to take domestic holidays. It has also allowed marketing
activity to be more effectively structured and focused by targeting the three segments that
are currently the most promising for domestic tourism – Cosmopolitans, Discoverers and
High Streets.

© VisitBritain 2004