ABSTRACT

Market segmentation ‘is essential for marketing success: the most successful firms drive their businesses based on segmentation’ (Lilien and Rangaswamy, 2002). It enables tourism businesses and destinations to identify groups of tourists who share common characteristics and therefore makes it possible to develop a tailored marketing mix to most successfully attract such subgroups of the market. Focusing on subgroups increases the chances of success within the subgroup thus improving overall survival and success chances for businesses and destinations in a highly competitive global marketplace.