Abstract Market segmentation is one of the most important things a company does and generally it is done by the marketing department of the frm. The main aim of segmentation is to appeal to the potential customers and then to concentrate efforts and money in an effective way. It helps in designing satisfying product for the selective group. It also helps in defning the market position of the product in highly competitive world. Segmentation helps in understanding needs and wants of the group, positioning, selecting effcient marketing mix and effective use of capital and increasing proftability by maximising customer satisfaction. There are many ways to segment a market. Different variables can be taken into consideration separately or with combination of two or more which will help in fnding the best way to view the segment. These include demographical, geographical, purpose, behavioural and benefts method. According to Bowen, Harrah (1998) demographic and geographic are the most favoured methods of segmenting a market in international hospitality. This paper has been completed with the help of secondary data – Journal, Case Studies, Books and guides on Hospitality Marketing. Keywords: Market Segment, Market, Demographic Segmentation, Psychographic Segmentation, Behavioural Segmentation The Relevance and Utility of Market Segmentation for the International Hospitality Industry Amit Khare*, Juhi Bhagwat** * Research Scholar, Tilak Maharashtra Vidyapeeth, Pune, Maharashtra, India. ** Assistant Professor, TMV’s IHMCT, Pune, Maharashtra, India. Email: juhib1234@gmail.com INTRODUCTION Each and every customer has different needs and wants. So it is not possible for any company to satisfy each and every person. An organisation has to decide which segment of the market it is going to serve. Market segment is a group of customers with common needs and wants. This process of identifying the segments of customers who share specialised, homogeneous demand is called as ‘market segmentation’ (Kotler, 2003). Smaller segments in the market with very specifc requirement are also known as niche markets. They are very concentrated markets with specialised requirements. Market segmentation is one of the most important things a company does and generally it is done by the marketing department of the frm. The main aim of segmentation is to appeal to the potential customers and then to concentrate efforts and money in an effective way. It helps in designing satisfying product for the selective group. It also helps in defning the market position of the product in highly competitive world. Segmentation helps in understanding needs and wants of the group, positioning, selecting effcient marketing mix and effective use of capital and increasing proftability by maximising customer satisfaction. The core of effective marketing is to select the segments that are most interested in product provided while eliminating the groups that are not interested and to aim the efforts towards those selected potential groups (Morrison, 2002). The data used for this paper is the secondary data. WHAT IS A MARKET? Market in its simplest version can be just a set of buyers. Buyers may have different wants, resources, attitudes, behaviours. So each buyer can be termed as a separate market. It is possible for any company to produce for a single person but it is not worthwhile. So company looks at a broader market with different buying responses. In other words company looks at the segments in the market. There are many ways to segment a market. Different variables can be taken into consideration separately or with combination of two or more which will help in fnding the best way to view the segment. There are many ways to segment a market used in international hospitality industry. These include demographical, geographical, purpose, behavioural and benefts method (Kotler et al., 1996). According to Bowen, Harrah (1998) demographic and geographic are the most favoured methods of segmenting a market in international hospitality. Atithya: A Journal of Hospitality 5 (1) 2019, 04-07 http://publishingindia.com/atithya/