Niche Market and Product Customization: Approaches to Increase the Arab Tourist Arrivals to Egypt: A Study of Hotels and Travel Agents

Nancy M. Fawzy, Omar Qoura

Abstract


According to the tourism competitiveness report, Egypt occupied the 64th rank globally in 2010, 75th in 2011, and 85th in 2013, while regionally Egypt occupied the 6th rank in 2009, and the 9th rank in 2013. This decrease in Egypt’s rank globally and regionally is
mainly due to the lack of political stability and terrorist attacks in the Arab Area. While efforts could be made to retrieve the international arrivals, two alternatives could be adopted to promote tourism activities and support the contribution of tourism to the
country’s economy; the first is to promote internal tourism activities, while the second is to target a niche market and customize a specific product/ service to satisfy the requirements of its customers. A niche market is the subset of the market on which a specific product is
focused. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended
to impact. Product customization is producing a physical good or a service that is tailored to a particular customer’s or market’s requirements.
Having Egypt in its location in addition to having the same language, culture, and similar habits should push tourism stakeholders to make use of that in targeting the Arab tourism market. Therefore, this study aims to identify the approaches that hotels and travel agents
in Egypt can adopt to attract the Arab tourist and increase the Arab arrivals to Egypt. The study focuses on two approaches (niche market and product customization) through which hotels and travel agents can produce specific packages to attract the Arab Tourist.
To achieve the aim of this study, the quantitative-qualitative approaches will be incorporated in this research. A questionnaire form will be used to collect the perceptions of travel agent and hotel managers towards the Arab niche market and customizing a
product to target this significant global market subset. Personal interviews will be conducted with some managers of travel agents and hotels to help identify the needs of the Arab tourism market. This study has many managerial implications to hotels and travel agents and significant insights to public authorities to encourage the Arab tourists and improve the numbers of tourist arrivals to Egypt.
Key Words: Niche Market, Product customization, Arab Tourists, Hotels, Travel agents, Egypt.

Keywords


Niche Market, Product customization, Arab Tourists, Hotels, Travel agents, Egypt.

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