Market Segmentation in Tourism and Hotel Industry

Abstract

The hospitality and tourism industries have been of no small concern, not only in the past but in the future, even though the fact that they are now being hampered by the epidemic, these two industries also still have great potential for growth due to the general trend of globalization and economic development. The two industries are closely linked and influence each other and due to increasingly fierce competition, the traditional hospitality and the tourism industry are no longer competitive, with a single and lack of updated products and services, needing to adapt to the market. In addition, as the increase of living standards of people and consumption levels, consumer demand will change, as a result, unchanging marketing and products will not satisfy the public. Market segmentation helps companies to identify the needs of different types of consumers in the market and improve their competitiveness, and in this paper, it will analyze the market segmentation of the hospitality and tourism industries through a comparative approach using two specific cases to explore the main process and variables adopted by the two industries for market segmentation, including five variables: geographic, demographic, psychographic, behavioral, and benefits sought. Each of these variables could be applied in a more flexible manner, and future developments in the hospitality and tourism industries will be discussed.