Name/s: 207-Tourism and

Hospitality
Delfun, Franz Nicole P.; Marketing
Gutierrez, Kassandra Diana Lizelle P.;
Manlangit, Barbie Anne O.

TYPE OF MARKET SEGMENTATION:

(Demographic, Psychographic, Geographic, and Behavioral)

DEMOGRAPHIC SEGMENTATION
Demographic segmentation divides the consumer market into smaller categories based
on common demographic factors. These smaller segments help companies understand
their prospective markets better, allowing them to utilize their resources and time more
efficiently. It can be effectively applied in the tourism and hospitality industries to target
specific groups of travelers based on their characteristics, for example, their age and
generation gap. It can also be based on gender, income, status, and education level.
Demographic segmentation customizes travel packages, accommodations, and
services to meet the unique needs and preferences of different demographic groups.

Let me give you an example of the age or generation gap. Cruise lines offer various
types of cruises tailored to different age groups. For example, they may offer family-
friendly cruises with children's activities and entertainment for families with kids, while
also providing adult-only cruises or cruises with specific activities aimed at older adults.
By doing this, an industry would be able to accommodate all their customers at the
same time and in the same manner without losing any customers. By effectively
segmenting their target market based on demographic factors, an industry can tailor
their marketing messages, onboard experiences, and shore excursions to meet the
diverse needs and preferences of their passengers, thereby enhancing customer
satisfaction and loyalty.

PSYCHOGRAPHIC SEGMENTATION
Gutierrez, Kassandra Diana Lizelle P.;

Psychographic segmentation in the tourism and hospitality industry involves dividing

customers into groups based on their attitudes, values, personalities, opinions,
concerns, interests, and lifestyle choices. By understanding the motivations and
preferences of different customer segments, businesses can tailor their marketing
strategies and offerings to meet their needs better.
One example of real-life businesses implementing psychographic segmentation in the
Tourism and Hospitality Industry in the Philippines is El Nido Resorts in Palawan. They
have successfully implemented psychographic segmentation by targeting the segment
of travelers seeking a tranquil and nature-focused getaway. El Nido Resorts operates
eco-friendly resorts in Palawan, offering guests the opportunity to involve themselves in
the natural beauty of the area while minimizing their environmental impact. They provide
amenities, services, and activities like guided nature tours, snorkeling, and diving,
allowing guests to connect with the pristine marine ecosystem. This strategy resonates
with the psychographic traits of tourists and travelers seeking authentic and worthwhile
travel experiences

By implementing this segmentation strategy effectively, El Nido Resorts has been able
to showcase and create a special offering that appeals to travelers will lead to increased
bookings, and more likely to recommend the place to others based on behavior,
feedback, and satisfaction of tourists or guests. This indicates how psychographic
segmentation can be effectively applied to adapt experiences and attract specific
customer segments in the tourism and hospitality industry.

GEOGRAPHIC SEGMENTATION
Manlangit, Barbie Anne O.

Geographic Segmentation is a marketing strategy used to target products or services at

people who live in, or shop at, a particular location. It works on the principle that people in that
location have similar needs, wants, and cultural considerations. By understanding what people
in that area require, brands can target more relevant marketing messages and suitable products
to customers who are then aware and more likely to buy.

six factors that pertain to geographic segmentation

1. Location (country, state, city, ZIP code)

2. Time Zone
3. Climate and season
4. Cultural preferences
5. Language
6. Population type and density (urban, suburban, exurban or rural)
Example:
A great example of geographic segmentation is a clothing retailer that presents online
customers with different products based on the weather or season in the region they reside in. A
customer in New York will require much different clothing in the winter months than one living in
Los Angeles. By implementing this market segmentation, the company can create personalized
products and experience for its customers in different regions, driving customer loyalty and
brand affinity. By understanding and responding to the unique needs and preferences of diverse
geographic markets, the business would expand its influence beyond just the locals.

Behavioral Segmentation
Delfun, Franz Nicole P.;

Behavioral Segmentation is an essential tool for the improvement of the tourism and
hospitality industries, as it allows businesses to personalize their products to better
meet the needs and wants of their customers. According to Dr. Rahul Sharma, lots of
marketers use behavioral segmentation as the starting point for creating consumer
market segments. An example of this is loyalty status-based segmentation. They divide
the customers based on their loyalty, as some customers are not loyal but are there to
hunt good deals. Companies are highly interested in increasing the loyalty of customers
towards their brands because loyal customers are price-insensitive compared to deal-
hunting customers.

This segmentation distinguishes its customers based on their preferences and habits,
such as frequency or brand loyalty. An example of this is an Airline collect data on how
frequently customers fly, the destinations they prefer, the class of service they typically
choose, and other behaviors such as last-minute bookings or advance planning. Airline
continually analyze customer behavior and feedback to refine their segmentation
strategies. They monitor changes in flying patterns, preferences, and market trends to
ensure that their rewards and incentives remain relevant and effective. This approach to
behavioral segmentation not only fosters customer loyalty but also helps airlines
maximize revenue by encouraging repeat business and increasing customer
satisfaction. It's an example of how understanding and catering to customer behavior
can be successful in a competitive industry.