Expenditure-based segmentation of visitors to the Tsitsikamma National Park

Purpose and/or objectives: The purpose of this article is to apply expenditure-based segmentation to visitors at the Tsitsikamma National Park. The objective of the research is twofold, to identify the socio-demographic and behavioural variables that influence spending at the Tsitsikamma National Park and to make recommendations on how to attract the high-spending market. Problem investigate: The Tsitsikamma National Park is Africa's oldest and largest marine reserve and plays a vital role in the preservation and conservation of marine fauna and flora. The park is also a popular holiday destination for international and local tourists and therefore plays an important role in the regional economy. Due to the importance of the park to the community and region, the Tsitsikamma National Park needs to attract more high spenders since this will contribute to the sustainability of the park. Expenditure-based segmentation is regarded as the best method for creating a profile of the high-spending market. Design and/or methodology and/or approach: To achieve this, tourist surveys from 2001 to 2008 were used. In total, 593 questionnaires were used in the analysis. Statistical analysis was done by applying K-means clustering and Pearson's chi-square as well as ANOVA analysis. Findings and/or implications: The research revealed that the province of origin, group size, length of stay and accommodation preference have a positive influence on higher spending. Originality and/or value of the research : Even though this type of research has been done for the Kruger National Park, a more innovative approach was followed by using K-means clustering, which is also the first time that this approach was used in determining the high-spending market at the Tsitsikamma National Park. Conclusion: Two distinct markets were identified. These were the high and low spenders where the most significant differences were with regard to province of origin, group size, length of stay and preferred type of accommodation. Interestingly, aspects such as owning a Wild Card (which is a loyalty card) showed no significant difference. The same applied for age, marital status or frequency of visits. Therefore, the results (if one compares this research with that done at the Kruger National Park) confirm that the size of operations and activities available have a dual impact.