Question

Discuss giving suitable examples the application of the market segmentation concept in tourism.

29 Mar 2022
Answer :
Word Count : 1158

 Tourists are not all the same, they have different pictures of their ideal vacation. Tourists are heterogeneous. Market segmentation is the strategic tool to account for heterogeneity among tourists by grouping them into market segments which include members similar to each other and dissimilar to members of other segments. Both tourism researchers and tourism industry use market segmentation widely to study opportunities for competitive advantage in the marketplace. 

Every tourist is different. Every tourist feels attracted by different tourist destinations, likes to engage in different activities while on vacation, makes use of different entertainment facilities and complains about different aspects of their vacation. While all tourists are different, some are more similar to each other than others: many people enjoy culture tourism, many tourists like to ski during their winter holiday and many tourists require entertainment facilities for children at the destination. Acknowledging that every tourist is different and that tourism industry cannot possibly cater for each individual separately forms the basis of market segmentation. Smith (1956) introduces the concept of market segmentation as a strategy. He states  that “Market segmentation consists of viewing a heterogeneous market (one characterized by divergent demand) as a _________ _______ __________ _________ __________ _________.
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