(i) Place or origin of tourists. (ii) Destinations.
(iii) Purposes of tour like holidays, pilgrimage, sightseeing, shopping, etc. (iv) Economic status and spending tendencies. (v) Demographic characteristics like age, sex, occupation and attitudes. (vi) Preference for staying like camping, luxury hotels, caravans, etc. (vii) Preferences of travel like air, sea, road or rail. Each segment of the market differs in terms of needs and expectations.
No one organisation can cater to the needs of all the segments. Each organisation has to decide on the particular segment or segments it would cater to. The segment so identified is called the target segment. The identification has to be made on the basis of what the organisation identifies as its objectives and its capabilities. Having identified the target market all activities will have to be planned and executed keeping this target market in mind. The service being offered, the messages in communication, the media used for communication, the pricing policies, the arrangements to access the service, all have to be consistent with the preferences and behaviour patterns of the target market.
For example, if the hotel is targeting on the domestic tourists in the circuit of religious places, there would be little point in advertising in business magazines or providing foreign cuisine in the restaurant. Simple vegetarian thali food would be more satisfying to its patrons.