LUXURY VS BUDGET TRAVEL: HOW MARKETING STRATEGIES SHAPE CONSUMER BEHAVIOUR

In today’s rapidly evolving tourism landscape, travelers are increasingly segmented not only by their spending capacity but also by their behavioural responses to digital marketing strategies. This study examines how luxury and budget travellers differ in their receptiveness to four major digital marketing techniques: price promotions, social media influence, personalized marketing, and urgency-based offers. While luxury travelers often value exclusivity, brand identity, and curated digital experiences, budget travelers prioritize affordability, practicality, and time-sensitive deals. To empirically assess these differences, a structured survey was administered to 250 recent travelers, equally divided between luxury and budget segments. Statistical analysis using Chi-square tests and ANOVA validated four hypotheses, confirming that all examined marketing strategies significantly influence consumer behavior—though in different magnitudes for each group. Notably, budget travelers showed stronger sensitivity to price and urgency cues, whereas luxury travelers responded more to personalization and social media narratives. The findings underscore the need for a dual-strategy approach in travel marketing—one that goes beyond income classification and considers psychological triggers and digital touchpoint engagement. This paper contributes to the field by providing actionable insights for marketers and travel brands to tailor their campaigns based on behavioural segmentation, ultimately enhancing customer engagement and satisfaction. Keywords: Luxury travel, budget travel, digital marketing, consumer behavior, price promotions, personalization, social media influence, urgency marketing, behavioral segmentation, travel industry strategy