Tourism market segmentation: a step by step guide
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Different tourists have different needs. This fact is widely acknowledged both among tourism researchers and in industry. As a consequence, market segmentation has developed to become a very popular marketing strategy for destinations and tourism businesses. They aim to develop a competitive advantage by identifying suitable segments of tourists and offer them the tourism service that will most satisfy their needs. Market segmentation strategy, however, can only be as good as the market segmentation analysis used as its basis. This chapter begins with a brief history of tourism market segmentation, outlining successful approaches as well as sub-optimal standard approaches that have developed over the last few decades. Then it offers a step by step guide to data-driven market segmentation with the aim of ensuring maximum validity of tourism market segmentation studies.