The document discusses tourism market segmentation in Nepal. It notes that tourism accounts for 4.3% of Nepal's GDP and is a major source of employment. The document outlines reasons to segment the tourism market, including focusing resources on customers most likely to visit. It discusses using data like tourist records to segment based on demographics, travel purpose, and locations visited. Different approaches to segmentation like a priori and data-driven are mentioned. Potential bases for segmentation include geographic, demographic, psychographic, benefits, usage, loyalty, situation, and behavioral factors. The document concludes by showing examples of segmentation results in Nepal based on travel purpose, partners, country of origin, and satisfaction levels.

1. TOURISM MARKET
SEGMENTATION IN CONTEXT
OF NEPAL
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2. OUR TEAM
Jivan Nepali
IOE, Pulchowk
Campus
June 18, 2013
Narayan Pd. Kandel
IOE, Pulchowk Campus
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3. TOURISM
Huge possibility
of Employment
Generation
Covers 4.3% of
National GDP
(2012)
So, if we can effectively market the tourism industry in
Nepal & abroad?
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4. TOURISM MARKET
SEGMENTATION
Segmentation
Small group bearing similar behavior
characteristics
Market Segments & Target Market
Means of implementing marketing
strategy
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5. WHY MARKET
SEGMENTATION IN TOURISM
Natural
Resources?
Cultural
Resources?
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6. WHY MARKET
SEGMENTATION IN TOURISM
“focus resources on the customers who are most likely to be
persuaded to visit their destination or to purchase their
product or service”
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7. DATA TO BE SEGMENTED
Tourist Details Records (TDRs)
Demographic characteristics along
with
purpose of visit
total duration stay
tentative places of visit
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8. SEGMENTATION
APPROACHES
A-priori Segmentation
Data-driven Segmentation
“Study shows Older People Travel More & Go Farther”
- Journal of Travel Research
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9. BASIS FOR SEGMENTATION
Geographic
Demographic
Psychographic/Life-style
Benefits
Usage
Loyalty
Situation
Behavioral
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10. BUILDING SEGMENTATION
MODEL
Step 1: Selection of the Segmentation
Base
(e.g. Travel Motivations, Vacation Activities)
Step 2: Grouping of respondents
Step 2(a): Selection of segmentation
algorithms(s)
Step 2(b): Stability Analysis
Step 2(c): Computation of final
segmentation solution 10

11. BUILDING SEGMENTATION
MODEL
Step 3: Profiling (external validation) of
segments by identifying in which personal
characteristics segments differ significantly
Step 4: Managerial assessments of the
usefulness of the market segments (and
formulation of targeted market activities)
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12. SEGMENTATION RESULTS
Purpose of Visit
Data Source: Nepal Tourism Statistics Report-2010
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13. SEGMENTATION RESULTS
Travel Partners
Data Source: Nepal Tourism Statistics Report-2010
2009
2010
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14. SEGMENTATION RESULTS
Country of Origin
Data Source: Nepal Tourism Statistics Report-2010 14

15. SEGMENTATION RESULTS
Satisfaction Level
Data Source: Nepal Tourism Statistics Report-2010
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16. References
[1] Hanlan J., Fuller D., Wilde S. J. (2006). “Segmenting tourism markets: a
critical review”. Southern Cross University, Melbourne, Australia.
[2] Barahi S., Fan R., Hung P., Malla P., Yeung R. (2011). “Tourism Cluster in
Nepal - Microeconomics of Competitiveness”. Harvard Business School, USA.
[3] Angus C., Brocklesby J. (2010). “Tapping the Domestic Tourism Market”.
Angus & Associates, Tourism Resource Consultants and The Knowledge
Warehouse, Ministry of Tourism, New Zealand.
[4] Khatri, L., B., Kayastha R., P. (2010). “Nepal Tourism Statistics 2010-
Provisional Report”. Ministry of Tourism & Civil Aviation, Government of
Nepal, Singh Durbar, Kathmandu.
[5] Khatri, L., B., Kayastha R., P., Pokhrel M., P., K.C., J. (2011). “Nepal
Tourism Statistics 2011- Annual Statistical Report”. Ministry of Tourism &
Civil Aviation, Government of Nepal, Singh Durbar, Kathmandu.
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17. Thank
You!
Questions & Answers Session
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