Explanation of tourism market segmentation terms

The term tourism market segmentation is explained as follows:

It refers to the enterprise dividing an overall market into two or more similar products based on the characteristics of tourists and the differences in their needs. The activity process of tourist groups with demand characteristics. After market segmentation, each tourist group with similar demand characteristics is a market segment.

The principles and concepts of market segmentation were first proposed by Wendell R Smith in 1956. The main basis for the principle of market segmentation is: Due to differences in tourists' desires, purchasing power, geographical environment, culture, society, purchasing habits and purchasing psychological characteristics, there are wide differences in demand among tourists.

Therefore, companies can segment the overall market according to the characteristics of tourists and the differences in their needs, that is, they can be divided into buyer groups with different needs and different purchasing behaviors. Travel groups that belong to a market segment assume that they have the same needs and desires, but they are not identical to one person.

Some market segment members want to add additional features and benefits beyond the basic products and services; others want to give up those parts of the content they do not want. For example, a hotel's target group is relatively "rich" people, so it provides many convenient and comfortable items in the room to improve customer satisfaction.