Management learning exercise and trainer’s note for market segmentation in tourism

Tourists are different. Tourists prefer different destinations, engage in different vacation activities and perceive different aspects of their vacation as important. Differences (heterogeneity) among tourists enable the tourism industry to identify interesting groups within the market who have similar and very distinct needs, target them, and gain competitive advantage through offering superior service to a smaller group of tourists instead of trying to satisfy the entire market’s diverse needs. The process of identifying and learning about possible market segments that may be managerially useful is referred to as market segmentation. This article shows how researchers can develop learning exercises for training analysts and executives in market segmentation techniques.