Business Analytics Report: Customer Travel Preferences & Spending

This report presents a business analytics study focused on understanding customer travel preferences and spending habits for Transcovery, an international travel and tourism company. The study uses data collected from a survey of 350 participants to analyze travel frequency, preferred travel regions (primary and secondary), annual travel spending, and preferred accommodation types. The findings reveal that participants are equally distributed across different geographical regions, with a significant portion being 30 years or younger. Europe is the most preferred primary travel destination, while Asia Pacific is the most preferred secondary destination. Most travelers are willing to spend between $1000 and $5000 annually on travel, and there are no significant differences in preference for basic, comfort, or luxury accommodations. The report also indicates that travelers are likely to fix travel dates based on discounted offers.

Business analytics
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Table of Contents
1.0 INTRODUCTION.....................................................................................................................................3
1.1 Research objectives...........................................................................................................................3
2.0 METHODOLOGY.....................................................................................................................................4
2.1 Data collection...................................................................................................................................4
2.2 Population and sample......................................................................................................................4
2.3 Data analysis......................................................................................................................................4
3.0 DATA ANALYSIS AND FINDINGS.............................................................................................................5
3.1 Table and graph showing number of participants by state of origin.................................................5
3.2 Table and graph showing number of participants by age group........................................................6
3.3 Table and graph showing primary preference of travel in the near future for participants..............8
3.4 Table and graph showing secondary preference of travel in the near future for participants..........9
3.5 How much will you be willing to spend on travel annually?............................................................10
3.6 Preferred class of accommodation..................................................................................................12
3.7 Frequency table for travel per year.................................................................................................13
3.8 How likely are you to fix travel dates based on discounted offers?.................................................14
4.0 Conclusion and recommendations......................................................................................................14
References.................................................................................................................................................15
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1.0 INTRODUCTION
Due to technological advancement and globalization, many industries have had a share of their
disappointments due to high level of competition. Many companies within various industries have
adopted different ways of remaining in the market including embracement of technology. One of the
industries that have been hard hit is the international travel and tour industry (Cooper, 2011). There has
been an upsurge in the number of tours and travel companies that have got into the industry (Winkler,
2015). Since the demand remains relatively constant, the prices tend to get low due to the forces of
demand and supply. This has forced many tour and travel companies to come up with various measures to
ensure that they maintain their profit margins (Mozzarol, 2010). Some of these measures have included
lowering of travel ticket prices and giving out incentives.
Transcovery is an international travel and tourism company. It has not also been spared by the turmoil
that has engulfed the tour and travel industry. It has been experiencing dwindling revenue due to a
reduction in the number of its customers. They have hypothesized that this situation has been occasioned
by large number of tour and travel companies in the global market hence the competition (McMahon,
2012). The management of the company feels that they have to have a firm grip of their customer base
lest their company go under. It is against this background that the management of Transcovery Company
embarked on a survey to collect customer-centric data so as to enable them understand their customer
base better. It is anticipated that from the results and findings, the company will be able to position itself
in the market well so as to be able to brave the competition (Cooper, 2011). The type of data collected
spanned from customers’ income, choice of accommodation and travel company choice. Both qualitative
and quantitative variables were involved.
1.1 Research objectives
 To establish the frequency of travel of customers per annum.
 To identify potential primary regions of travel for customers.
 To identify potential secondary regions of travel for customers.
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 To know approximately how much customers will be willing to spend annually on travel.
 To determine generally the preferred class of accommodation for majority of customers.
2.0 METHODOLOGY
2.1 Data collection
Data collection for this survey was collected using structured questionnaire. The questionnaire was
deemed appropriate because it was able to reach more people within a wide geographical area. It was also
easy to track the questionnaires back since they were sent online. Questions asked were both qualitative
and quantitative. A likert scale was also used to get the opinion of the customers.
2.2 Population and sample
The population of the study was the customers who patronize the tour and travel industry. The sample
included 350 participants who were drawn from the population. The sample was selected through simple
random sampling. Simple random sampling was appropriate since it ensures cases of biasness are
minimized. It also ensures that the population is normally distributed.
2.3 Data analysis
The data collected was sorted, organized and analyzed through excel and statistical package for social
sciences (SPSS). Statistics such as measures of dispersion and measures of central tendency were
calculated. Measures of dispersion include standard deviation, variance and range while measures of
central tendency include mean, mode and median. The study also calculated inferential statistics such as t-
test. The results were presented in form of tables and graphs for easy interpretation.
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3.0 DATA ANALYSIS AND FINDINGS
3.1 Table and graph showing number of participants by state of origin
State
Frequency Percent Valid Percent Cumulative
Percent
Valid
New South Wales 50 14.3 14.3 14.3
Queensland 60 17.1 17.1 31.4
Western Australia 60 17.1 17.1 48.6
South Australia 60 17.1 17.1 65.7
Tasmania 60 17.1 17.1 82.9
Victoria 60 17.1 17.1 100.0
Total 350 100.0 100.0
Table 1
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Figure 1
It can be observed from table 1 and figure 1 above that the 350 participants were equally distributed
across the 6 geographical locations. 60 participants came from the 5 regions that is Queensland, Western
Australia, South Australia, Tasmania and victoria. 50 participants came from New South Wales.
3.2 Table and graph showing number of participants by age group
Age group
Frequency Percent Valid Percent Cumulative
Percent
Valid
30 or less 88 25.1 25.1 25.1
30-40 80 22.9 22.9 48.0
40-50 54 15.4 15.4 63.4
50-60 46 13.1 13.1 76.6
60-70 37 10.6 10.6 87.1
more than 70 45 12.9 12.9 100.0
Total 350 100.0 100.0
Table 2
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Figure 2
Table 2 and figure 2 are representations of how participants are distributed age wise. 88 people were 30
years or less. 80 of them were between the age of 30 and 40 years. 54 participants were between the age
of 40 and 50 years. 46 out of the 350 participants were between the age of 60 and 70 years while 45 were
more than 70 years of age.
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3.3 Table and graph showing primary preference of travel in the near future
for participants
Region one
Frequency Percent Valid Percent Cumulative
Percent
Valid
Africa 52 14.9 14.9 14.9
Americas 68 19.4 19.4 34.3
Asia Pacific 90 25.7 25.7 60.0
Europe 103 29.4 29.4 89.4
Middle East 37 10.6 10.6 100.0
Total 350 100.0 100.0
Table 3
Figure 3
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It can be observed that 103 (29.4%) participants preferred Europe as their primary location of travel in the
near future. This is followed by Asia Pacific with 90 (25.7%) participants. The region which was least
preferred by participants was Middle East (10.6%).
3.4 Table and graph showing secondary preference of travel in the near future
for participants
Region two
Frequency Percent Valid Percent Cumulative
Percent
Valid
Africa 71 20.3 20.3 20.3
Americas 51 14.6 14.6 34.9
Asia Pacific 107 30.6 30.6 65.4
Europe 76 21.7 21.7 87.1
Middle East 45 12.9 12.9 100.0
Total 350 100.0 100.0
Table 4
Figure 4
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It can be observed that 107 (30.6%) participants preferred Asia Pacific as their secondary location of
travel in the near future. This is followed by Europe with 76 (21.7%) participants. The region which was
least preferred by participants as their secondary place of travel was Middle East (12.9%).
3.5 How much will you be willing to spend on travel annually?
Annual income
Frequency Percent Valid Percent Cumulative
Percent
Valid
$1000 or less 75 21.4 21.4 21.4
$1000-$5000 238 68.0 68.0 89.4
more than $5000 37 10.6 10.6 100.0
Total 350 100.0 100.0
Table 5
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Figure 5
From table 5 and figure 5 above, it can be seen that 238 (68%) of the participants were willing to spend
between $1000 and $5000 annually for travel. 75 (21.4%) of the participants were willing to spend $1000
or less annually for travel. 37 (10.6%) of the participants were willing to spend $5000 or more annually
for travel.
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3.6 Preferred class of accommodation
Accommodation
Frequency Percent Valid Percent Cumulative
Percent
Valid
basic 109 31.1 31.1 31.1
comfort 122 34.9 34.9 66.0
luxury 119 34.0 34.0 100.0
Total 350 100.0 100.0
Table 6
Figure 6
It can be observed that 122 (34.9%) of participants prefer comfort type of accommodation. 119 (34%)
prefer luxury type of accommodation. 109 (31.1%) prefer basic type of accommodation.
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