Segmentation Methods in Tourism Research

The analysis of tourism demand aimed to define tourist segments is crucial for the development of market strategies. Segmentation is the process of dividing a total market or a sector in different homogeneous subgroups for management purposes. In tourism field, market segmentation allows any destination to specialize and differentiate products and services on the basis of tourists’ needs and characteristics. A plethora of statistical segmentation procedures is employed with exploratory, descriptive and predictive goals. This chapter examines the main methods used in tourism research, without any claim of being exhaustive. We analyse pros and cons of each method on the basis of research outcomes as well as the conditions of application. After considering some issues about segmentation in tourism, we detect the best practices for pre-processing the variables useful for market segmentation. Afterwards, the methods are discussed drawing a distinction between a priori and a posteriori approaches. Finally, we present the recent developments of the statistical classification techniques and casual models. In conclusion, in order to propose the application of the methods for similar data, we compare procedures and derived outcomes, based on matched methods, to analyse incoming tourism demand in Sicily.