Market segments in Hospitality and tourism

 Market segmentation is the process where marketers group together consumers with similar wants, needs and features in an attempt to obtain a greater precision in service delivery. The underlying benefit of this marketing tool is that it enables good decision making and promotes workable trading operations. (Goeldner, Charles and Ritchie Brent, 1994)


In recent times market segmentation has become an essential component in the hospitality and tourism industry. This is so because many of these hospitality chains operate across several states and countries alike, thus the need to differentiate between versatile consumer groupings that make up their target market. (Fyall and Garrod, 2005) For example, a multinational restaurant considers the divergence between consumer lifestyle, behavior and disposable incomes in different countries.  This is the fundamental challenge to the product-service mix for hospitality and tourism organizations today.

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