Improving the stability of market segmentation analysis

Data-driven market segmentation is heavily used by academic tourism and hospitality researchers to create knowledge, and by data analysts in tourism industry to generate market insights. The stability of market segmentation solutions across repeated calculations is a key quality indicator of a segmentation solution. Yet, stability is typically ignored, risking that the segmentation solution arrived at is random. The present study offers an overview of market segmentation analysis and proposes a new procedure to increase the stability of market segmentation solutions derived from binary data.