A multi-criteria, composite index methodology to measure the suitability of target markets for the hotel industry

Abstract

This article presents a multi-criteria methodology to identify target markets for the hotel industry, based on objective and quantitative criteria from official statistical sources, using five dimensions: volume, evolution, seasonality, length of stay and expenditure. The methodology allows tourism organisations to: i) identify market indicators that respond to their organisational goals; ii) build a composite indicator that reveals the suitability of these markets; and iii) evaluate market segments based on their attractiveness and their market share. We test and illustrate the methodology using pre- and post-pandemic data for international tourism demand to Spain, illustrating the value of different target markets both for the country's hotel industry and for individual hoteliers.