A Review of Data-Driven Market Segmentation in Tourism

Abstract

Abstract Clustering has become a very popular way of identifying market segments based on survey data. The number of published segmentation studies has strongly increased since the milestone publication on benefit segmentation by Haley in 1968. Nevertheless, numerous very fundamental weaknesses are permanently encountered when studying segmentation studies in detail, thus making the results reported more than questionable. This article illustrates how data-driven segmentation studies are typically conducted in the field of tourism research, provides a systematic overview of applications published in the last decades, outlines critical issues that often lead to overestimation of the validity of results and offers solutions or recommendations that help both the researcher to keep the critical issues in mind as well as the management to evaluate the validity and usefulness of the study.