Pergamon Int. J. Hospitality Management Vol. 14 No. 2, pp. 123-137, 1995 Copyright @ 1995 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0278-4319/95 $9.50+0.00 zyxwvutsrqpon 0279-4319(95)00010-0 Product bundles and market segments based on travel motivations: a canonical correlation approach Heung Chul Oh, Muzaffer Uysal and Pamela A. Weaver zyxwvutsrqponmlkjihgfedcba Virginia Polytechnic Institute and State University, Department of Hospitality and Tourism Management, 362 W allace Hall, Blacksburg, VA 24061, U.S.A. To market effectively a particular destination, it is necessary to understand both push and pull motivations and the relationship between these two motivations for overseas travel. The relationship between these two motivations for overseas pleasure travel has been studied for an Australian sample of 1030 respondents by utilizing canonical correlation analysis. Canonical analysis generated four meaningful canonical variates. Respondents, then, were assigned to canonical variates in order to form market segments. The paper concludes with appropriate marketing implications as suggested by the study findings. Key words: product bundles market segments travel motivations Introduction The international tourism industry is one of the largest and fastest growing industries in the world. Considering the current international environment including the opening of Eastern Europe as well as the increase in disposable income and leisure time throughout the world, it can be expected that there will be greater numbers of international tourists in most countries (Edgell, 1993). Today, tourism is a key ingredient in the economic development strategy of many nations. The attractiveness of tourism as a generator of income, employment, tax collections, and foreign exchange earnings has led many countries to enter the competition of attracting international travelers to their destinations (Lea, 1988). Currently, many countries are doing market research in overseas countries. For example, the U.S. Travel and Tourism Administration (USTTA), Tourism Canada, and the British Tourist Authority regularly monitor differing consumer needs of tourists from those destinations which provide substantial tourist demand in their countries (Holloway and Plant, 1988). As countries strive to increase their share of foreign visitors, it becomes necessary to understand why people travel and why they choose a specific destination for international pleasure travel (Yuan and McDonald, 1990). Motivation for pleasure travel has received 123