Benefit Segmentation: A Review of Its Applications to Travel and Tourism Research

Abstract In travel and tourism, the diversity of products and customers has justified the intensive use of segmentation strategies as strategic weapons in an increasingly competitive environment. Among these techniques, benefit segmentation has had extensive use in travel and tourism research, and seems to have received wide approval by academics and practitioners alike. This method involves the segmentation of a market based on the benefits sought in a product rather than simply grouping consumers on traditional factors such as demographic, socioeconomic, or geographic characteristics. However, the definitions and the research methodologies involved in applying benefit segmentation have varied, justifying the need for a state of the art of its current developments and applications in travel and tourism research. This article reviews the basic principles underpinning benefit segmentation, its applications to travel and tourism, and the methodological issues associated with segment identification. It concludes with the identification of the main challenges, issues, potential advantages and disadvantages of using benefit segmentation in travel and tourism marketing and research.