Market Segmentation of Orbitz Essay Example | Topics and Well Written Essays - 4750 words

Market Segmentation of Orbitz - Essay Example In relation to the study, the company which has been selected is Orbitz, one of the leading travel companies which were formed by an alliance between major airline companies; American, Continental and Delta Airline, Northwest, United Airline and Continental Airline companies in the year 1999. It is a leading travel company enabling customers and passengers to plan and book a broad range of travel products. This essay discusses that the parent company Orbitz worldwide own a series of brands like Orbitz, Cheap Tickets, ebookers, HotelClub and Rates to go, The Away Network and Orbitz for Business. The website was launched in the year 2001 and in the year 2004, the company was acquired by Cendant Co Ltd. The company is headquartered in Chicago and the company is listed on New York Stock Exchange. The paper tells that the IPO of the company occurred in the year 2007 and the investor of the company Travelport is one of the world’s largest networks in the world. Orbit offers travel s ervices like vacation packages, cruise and car rentals and other travel services. This paper illustrates that in the year 2012 the company was labeled as one of the best travel companies to work for by Forbes. Orbitz is one of the few travel companies which offers passengers and customers to reserve and book tickets through various technological modes. The company offers holiday packages and tickets at a relatively low price compared to the other travel companies.... Market segmentation requires several technological and modelling techniques for accurate analysis and performance. Some of the important methods of market segmentation techniques are Automatic Interaction Detector (AID) and Multidimensional Scaling Techniques (MSD) and conjoint analysis. We will now conduct a market segmentation of Orbitzs Travel Company to understand the target customer base and the techniques used for conducting market segmentation. Geographic Segmentation Marketers conduct segmentation as per the geographic criteria like nations, states, cities, regions, countries etc. The company presently offers more than 1.5 million flight options to customers since, Orbitz is a travel company it has not confined to its services to a particular geographical location and the services are available worldwide. Orbitzs travel packages, online reservation of tickets, online hotel booking, and car rental at a lower price comparatively than the other travel companies. The company offe rs the travels services and facilities at a lower price to target countries with high and low purchasing power. Demographic Segmentation The demographic segmentation is the most common and prevalent form of market segmentation. Demographic segmentation would be done based on the gender, age, income, occupation, household size and education. In this case the travels services are offered for individuals, corporate customers, school children, family and married couples. Age: Based of age profile the target customers of Orbitz would be individuals of all ages including infants and toddlers. Income: Although, the travel services are offered at an affordable prices (Orbitz, 2013d) some of the services like the hotel