CHAID-based Segmentation: International Visitors' Trip Characteristics and Perceptions

Abstract

This study segments inbound travelers to Hong Kong with aCH i-squareA utomaticI dentificationD etector (CHAID) technique. Seven predictors are used to derive market segments based on their likelihood of revisiting Hong Kong. The CHAID analysis produces six segments based on respondents' travel purpose, age, income, and repeat visit status. Each segment is described according to trip characteristics, including length of stay, travel party size, total expenditure, frequency of visits, mode of travel, and post-trip perceptions. Suggestions are made based on findings from the study, and marketing implications for resultant segments are discussed.