Building a segmentation that keeps working

Icelandair

Icelandair needed a better way to understand the differences between transatlantic travellers and identify which represented the greatest opportunity for the brand.

We created a bespoke consumer segmentation that went beyond demographics to understand the attitudes, motivations and approaches to travel that really set people apart. Seven years later, it remains a strategic framework for decision-making across the business.

Iceland Air Plane

UNDERSTANDING THE OPPORTUNITY

Finding the travellers that matter most

In 2019, we created a transatlantic traveller segmentation for Icelandair, initially drawing on data from more than 13,700 flyers.

The ambition wasn’t simply to create recognisable groups of customers. Icelandair needed to understand which travellers it should prioritise for growth, while bridging the gap between brand and performance marketing.

We built the segmentation around Icelandair’s strategic priorities and commercial goals, bringing together the needs of internal stakeholders and partner agencies. Alongside attitudes and motivations, we considered factors including travel spend and headroom, frequency, cabin preference, business versus leisure travel, brand preference and proposition fit.

The result was a clear view of which traveller segments represented the greatest opportunity for Icelandair, and a shared framework that teams could use to make decisions.

13,700+ TRAVELLERS

The original segmentation drew on data from more than 13,700 transatlantic flyers, looking beyond demographics to understand meaningful differences in attitudes, motivations and approaches to travel.

7 YEARS AND EVOLVING

First created in 2019, the segmentation has been revisited and evolved as the travel market has changed, providing a consistent framework through which Icelandair can understand new behaviours and emerging opportunities.

ONE SHARED FRAMEWORK

The segmentation now provides a customer lens across customer experience, cabin layout and fares, marketing and creative development, PR and paid media.

THE RESULTS

From customer understanding to better business decisions

The segmentation has become a practical decision-making tool for Icelandair, giving teams a shared understanding of the customers they want to win and what matters to them.

It has also helped turn customer understanding into more effective marketing. Icelandair’s performance marketing agency found that tailoring activity to the segment profiles increased click-through rates, leading to further work testing how different messaging, imagery and Icelandic experiences resonated with different traveller segments.

Just as importantly, the framework hasn’t stood still. We’ve continued to revisit the segmentation as the travel landscape has changed, building a clearer picture of shifts in booking behaviour, attitudes towards the travel experience and sustainability. What began as a segmentation of transatlantic travellers has therefore become a useful barometer for wider change in the category.

Alongside the strategic framework, rich profiles and videos featuring real travellers have helped bring the segments to life across the organisation, creating a common language around who Icelandair is trying to reach and why.

For TVE, the project shows what happens when segmentation is treated as a strategic business asset rather than a one-off research exercise. Seven years on, it continues to help Icelandair decide who to prioritise, where opportunities lie and how to act on them.