CHAPTER 1 INTRODUCTION
1.0 Introduction
This chapter generally describe about the study. This chapter discuss about five topics which are research background, problem statement, research objectives, research questions, and significance of study.
1.1 Research Background
World population is developing from year to year. In 2015, the world population is about 7.3 billion where China is the most populous country in the world with 1372 millions of population. Meanwhile, Malaysia's population in mid-2015 is about 30.8 millions. 68% (about 20.944 millions) of the population belong to people aged 15-64 years old (2015 World Population Data Sheet, 2015). In Malaysia, Generation Y accounts for 11 millions people in 2010 which is 40% of Malaysia's population ("Penduduk/Population," 2010). Also known as the Millennials, the definition of Generation Y varies between the ages of such youths in various studies, but it can be said that Gen Y are defined as those born any time between 1980 and 2000 . The millenial generation is one of the largest generations in Asia; in fact, there are about 1 billion Asian Millennials today, constituting approximately a quarter of Asia's total population ("Capturing the Asian Millennial Traveller,")
Tourism industry also keep developing from year to year all over the world. With 760 million international arrivals recorded in 2004, accounting for almost US$622 billion of receipts, tourism is a major global activity that has grown by 25 per cent in the past 10 years (WTO and UNEP, 2005). Gfk's latest analyses of the Chinese market shows that China produced 109 million outbound tourists in 2015-with retail spend of US$229 billion (Martin, 2016). Allign with the development in tourism industry worldwide, the patterns and trends in tourism industry also change per period of time. Since 2014, increasing numbers of China's outbound tourists have been opting for other destinations that offer historical and cultural experiences, as well as shopping (Martin, 2016).
Meanwhile in Malaysia, tourism industry was not that popular back then. Tourism department officially begun in 1959 was transformed to Tourism Development Corporation (TDC) in the early 1970's (Mazumder, Ahmed, & Al-Amin, 2009). The country started to give more intention to tourism industry during the economic recession period. Increasing attention has been given by the Malaysian government to develop sustainable tourism as an alternative source of foreign exchange to remedy the balance of payment deficit during 1980's…unlike many developing nations, tourism industry is now considered as one of the important engines of development for the Malaysian economy receiving vital focus in the government's industrial strategy. The development allocation for this industry has been increasing over the years (Mazumder et al., 2009).
1.2 Problem Statement
Interestingly, the development as well as the changing in patterns and trends in tourism or travel industry nowadays is influence by the Millennials. From the airline sector to hotels, not to mention destinations and attractions, leaders are relooking at their business plans, management teams, operations, core offerings and even brands to examine how they will survive this unquestionably overwhelming change that is about to hit the industry, if it has not already (Mendiratta, 2014). This group of travellers has a huge impact towards the travel industry. The industry need to know and study the latest travel trends of Millennials in order to sustain in the industry.
Although members of the Millennial generation are not yet the core customers of airlines, hotels, and travel companies, they will be in five to ten years, when they enter their peak earning, spending, and travelling years…Companies must develop distribution strategies and tactics that allign with Millennials' habits and preferences (Barton, Haywood, Jhunjhunwala, & Bhatia, 2013). Therefore, it is important for the tourism or travel industry to understand Millenials travel behaviour.
Millennial travel behaviour are affected by several factors. The factors are including political, economical as well as social factors. Recently, statistics compiled by Tourism Malaysia showed a decline of about 600,000 arrivals in the first quarter of 2015 compared with the same period the year before…Tour and Travel Agents (Matta) President Hamzah Rahmat said the 8.6 per cent decline was triggered by several factors, which did not include the airline tragedies that shook Malaysia last year (Adilah, 2015). He also said that the declination was affected by unstable political situation and Malaysian attitude towards tourists.
We found that Millennials play an important role in tourism and travel industry. This group of tourists and travellers are different in most field especially behaviour and preferences. The characteristics of Millennials drives the industry to fulfill their preferences since they are the largest contributor towards the industry. Therefore, the main point of this study is to determine the factors that influence Millennials to go for travelling.
1.3 Research Objectives
1.3.1 The research objectives of this study are as follow:
1.3.1.1 To examine the relationship between Millennial traveler and special events
1.3.1.2 To examine the relationship between Millennial traveler and economic factor
1.3.1.3 To examine the relationship between Millennial traveler and technology factor
1.3.2 Research Questions
The research questions are as follow:
1.3.2.1 What is the relationship between Millennials traveller and travel for special events?
1.3.2.2 What is the relationship between Millennials traveller and economic factor?
1.3.2.3 What is the relationship between Millennials traveller and technology factor?
1.3.2.4 How far does those factors influencing the Millennials to travel?
1.4 Significance of study
Nowadays, the Millennials traveller population are developing allign with the development of tourism and travel industry. This group of tourists will be the core customers in the industry in the future, therefore it is vital to catch up with the Millennials population in order to be able to sustain in the industry.
This study is mainly to study about the factors which are influencing the Millenials to travel. This study is focusing at UMK's Undergraduate students' group of Millennials. Its purpose is to determine the factors influencing these students to travel. Therefore, this study may help the university to design new program related to the issue which are suitable and fulfill the preferences and needs of the industry and the students themselves. This study also may help the university to evaluate the existing program related to the issue and improve the program. This study also can be the references to implement a joining program with the industries outside the university.
CHAPTER 2 LITERATURE REVIEW
2.0 Introduction
This chapter discusses literature mainly about the millennial traveler and the factors that influencing the millennial to travel anywhere. In addition, this chapter describes the research framework, which also serves as the conceptual framework of this study. Lastly, the final section summarizes the chapter.
Millennial are also known as a generation Y. Generation Y members, also known as Millennial, were born between the late 1970s and the late 1990s. The group's total number is similar in size to the Baby Boomer generation, at ap''proximately 80 million individuals (PrincetonOne & Hobart). This is the newest group to enter the workforce, with many of its members holding entry-level positions. They are also optimistic, social and have high expectations for themselves and others.
This study focuses on young travellers because changes and developments in tourism behaviour can be foreseen by describing their present behaviour. Then, research on this segment is limited and fragmented. Specifically, this paper focuses on university students. They are, in general, of the same age as young travellers (18-30 years old). Compared to young travellers who are not students, they prefer to travel independently from their family (Carr, 2003) as cited by (Buffa, 2015).
2.1 INDEPENDENT VARIABLES
2.1.1 Special events
Events are an important motivator of tourism, and figure prominently in the development and marketing plans of most destinations. The roles and impacts of planned events within tourism have been well documented, and are of increasing importance for destination competitiveness. Yet it was only a few decades ago that 'event tourism' became established in both the tourism industry and in the research community, so that subsequent growth of this sector can only be described as spectacular (Getz, 2008).
Sports as 'big business' is an enduring theme. For example, Rozin (2000) described Indianapolis as a 'classic case' of how sports can generate a civic turnaround. Sports Business Market Research Inc. (2000, p. 167) observed that in the 1980s and 1990s American cities ''put heavy emphasis on sports, entertainment and tourism as a source of revenue for the cities.'' Gratton and Kokolakakis (1997) believed that in the UK sports events had become the main platform for economic regeneration in many cities, cited by (Getz, 2008).
Carlsen and Taylor (2003) looked at the ways in which Manchester used the Commonwealth Games to heighten the city's profile, give impetus to urban renewal through sport and commercial developments, and create a social legacy through cultural and educational programming. The sports played a big role to the main attraction for youth travel (Getz, 2008).
2.1.2 Economy
Economic impact studies in travel and tourism are undertaken to determine the effects of specific activities in a given geographic area on the income, wealth and employment of that area's residents. They are conducted for cities, counties, towns, states, provinces, nations, and for individual facilities (e.g., museums) and events (e.g.,Olympic games). They often relate to an annual period, although seasonal and event impact studies are not unknown. The results indicate the contribution or cost of tourism activity to the economic well-being of residents of an area, usually in monetary terms (Frechtling, 1994).
We normally think of the "costs of travel" as the explicit prices the youth travel pay for his trip, his "private costs". He purchases transportation, lodging, food, entertainment, and numerous other goods and services, all at explicit prices in the marketplace. However, it is important to recognize that all of the costs associated with a trip are not paid explicitly by the traveler or the traveler's employers in the case of a business-related trip'Some are paid explicitly and implicitly by others (Frechtling, 1994).
These costs borne by others but related to the traveler's activities fall in the general class economists call "spill over costs" or "detrimental externalities" (Baumol and Blinder 1988, p. 251).The distinction is between the "private costs" of the trip, those paid explicitly by the traveler for goods and services in the marketplace, and "incidental costs," which represent other resources that are sacrificed in the process: all the disutility generated by the production process that is not recompensed by traveler purchases (ibid.;Samuelson and Nordhaus 1989, p. 770) as cited by (Frechtling, 1994).
2.1.3 Technology
The development of technology is one of the most important factors that have affected global tourism in the last 50 years. As technology has developed, the opportunities for tourism around the world have expanded dramatically. The first, and probably the most important, factor is technological improvements to transport. The development of air travel has allowed for holidays to parts of the world that otherwise would have required considerable time and wealth to complete by boat, and so this has dramatically increased global tourism. This then led to further developments in planes so that more passengers could be transported faster and more cheaply by jumbo jets (Moden).
Cheaper flights meant that anybody could now afford to travel to virtually anywhere in the world. At Malaysia, the youth travels mostly choose Air Asia flight because it is more affordable price. This caused global tourism to become much wider spread, rather than travelling to nearby areas people could travel to other countries and other continents instead. As flights became faster this improved opportunities for travel to more and more exotic places, and so areas with a small population were dramatically affected; before tourism would be mainly people from the surrounding area but with technology allowing people to visit from anywhere in the world this resulted in mass tourism to countries, and so provides an important part of their economy (Moden).
CHAPTER 3 METHODOLOGY
3.0 Introduction
This chapter describes the technique and methods that use to accomplish the aims of this research that includes the research design, sampling frame, population, sampling technique, sample size, unit of analysis, data collection procedures, instrument, validity of instrument and data analysis.
3.1 Research Framework
The purpose of this study will be to examine the influence of travelling factors towards the UMK City Campus students. This section explains the proposed theoritical framework. According to (Sekaran & Bougie, 2013) a theoretical framework is a conceptual model of how one theorizes or makes logical sense of the relationships among the several factors that have been identified as important to the problem. The research framework as illustrated in Figure 3.1 has five key components: entrepreneurship intention, entrepreneurship education, family background, personality traits, and economic traits. Entrepreneurship education, family background, personality traits, and economic traits serve as the independent variable. Entrepreneurship intention of the UMK City Campus students serves as the dependent variable.
Figure 3.1 Conceptual Framework
3.2 Research Hypothesis
Hypothesis 1
H0: There is no relationship between Millennial traveler and special events.
H1: There is a significant relationship between Millennial traveler and special events.
Hypothesis 2
H0: There is no relationship between Millennial traveler and economic factor.
H1: There is a significant relationship between Millennial traveler and economic factor.
Hypothesis 3
H0: There is no relationship between Millennial traveler and technology factor.
H1: There is a significant relationship between Millennial traveler and technology factor.
3.3 Research Method
3.3.1 Primary Data
In this research, the researcher will use a questionnaire method to assemble the required information. This strategy is to be utilized on the grounds that questionnaire is normally less expensive to direct, generally simple to control since they are institutionalized and also moderately free from a few sorts of blunder and it is effective method for gathering data from a large number of respondents. An arrangement of questionnaire will be managed at comfort to the students of UMK City Campus. The respondents will be required to finish every one of the inquiries in a period given. Assistance is also to be given to the respondents especially in clarifying the questions.
3.4 Population
The population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate (Sekaran & Bougie, 2013). For this study, the population is the students of Faculty of Entrepreneurship and Business in UMK City Campus. The students are selected due to they are in the age range of millennial.
3.5 Subject and Sample
A sample is a subset of the population (Sekaran & Bougie, 2013). The total number of population for this study is 3842 students. By referring to Krejcie and Morgan Table, the sample size for this population is 350 students. 350 students will be selected randomly among the population. Therefore, the sample size for this study is 350 students.
3.6 Research Instrument
The instrument that will be utilized as a part of this exploration is surveys. Survey is best utilize when there are extensive quantities of respondents in numerous areas, simple to break down the finding, institutionalized information from indistinguishable questionnaire and requires genuinely straight forward data (Maber, 2001). It will be produced by specialist in view of the writing from past exploration. The things in the questionnaire will be planned by exploration goals and the examination questions stipulate in this study. The survey comprises of close-finished inquiries. This questionnaire additionally utilize Likert Scale which is 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree. Another Likert Scale use is 1=Very Dissatisfied, 2=Dissatisfied, 3=Neutral, 4=Satisfied and 5=Very Satisfied.
3.7 Data Analysis
The analysis data collection in this study involves the descriptive statistic, correlation and multiple regressions. The descriptions of each technique are as follows. Descriptive statistics is the term given to analyses the data that helps to describe, show or summarize data in a meaningful way. The respondent will be asked to indicate their age, gender, education level, religion, and profession of parent. Thus, it is used to calculate average, frequency distribution and percentage distribution of the demographic information provided by respondents in Section A.
According to (Sekaran & Bougie, 2013), Pearson correlation analysis indicates the strength, direction and significance of bivariate relationships among all the variables that were measured at interval or ratio level. The larger the correlation coefficient, the stronger the level of association and it can be either positive or negative depending on the direction of the relationship between variables. In this study, it is used to measure the co-variation and association between millennial traveler and three elements (special events, economic factor, and technology) on hypotheses 1, 2, and 3.
Next is multiple linear regression analysis is an analysis of association which the effects of two or more independent variables on a single, interval-scaled dependent variable (Sekaran & Bougie, 2013). In this study, independent variables (special events, economic factor, technology factor) are entered into the same regression equation to predict whether there is any significant relationship with entrepreneurial intention.
Multiple linear regression equation shows the relationship as follow: Y = a+ b1X1 + b2X2 + b3X3+'''.
For this research, the below equations show the relationship between independent variables that influencing millennial to travel in the case of UMK City Campus students:
Millennial to travel = a + b1 (special events) + b2 (economic factor) + b3 (technology factor)
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