Segmenting the market of first‐time visitors to an island destination

Purpose – The purpose of this study is to segment the market of first‐time visitors based on the activities travelers engage in while at a destination using demographics, socio‐economic variables, and trip‐related characteristics. Design/methodology/approach – The research analyzes 1,104 exit surveys completed by first‐time visitors to the Canadian province of Prince Edward Island. Clustering analysis identifies three segments that are refined and tested by multivariate and bivariate analyses. Findings – The results indicate that there are three distinct segments of first‐time visitors based on travel activities: culture‐oriented (26 percent of the market), active (37 percent), and casual (37 percent). The key differences among the three segments are demographic, socio‐economic, trip‐related characteristics, and spending patterns. These results confirm the sustainability and profitability of the market segments. Practical implications – Segmenting markets for products or services, in any industry, is vital to gain a better understanding of the customer, and to better allocate scarce tourism resources to product development, marketing, service, and delivery. Therefore, all tourism industry stakeholders must be aware of the market segments that are currently visiting the destination. Originality/value – Tourist segments based on activities are not absolutes, but a continuum. The majority of first‐time visitors to a destination engage in a variety of travel activities across the segments, running from more to less involved. Successful tourism destinations are those that meet the various activity needs of their segments in both their marketing and on the ground.