As millions more travel abroad each year, the competition to attract these visitors becomes ever fiercer. Yet the money spent by destinations on capturing their interest can be easily wasted if not properly channelled according to this comprehensive report on tourism market segmentation by the World Tourism Organization (UNWTO) and the European Travel Commission (ETC). This second in a series of joint UNWTO/ETC methodological handbooks, sets out to 'demystify' the segmentation process by offering a practical guide to theory and practice on how to effectively identify and target potential tourists in order to optimize the return from marketing spend. Market segmentation is crucial for National Tourism Organizations (NTO) and Destination Marketing Organizations (DMO) in making sure that their resources are used in the most effective way. Everything they do - media selection, destination positioning, branding, editorial, visuals, etc. - revolves around the segments that have been identified as the most important. This is why monitoring and managing a portfolio of target segments that meet a destination's tourism objectives has become a critical function for any NTO or DMO. This UNWTO/ETC manual, aimed ultimately at helping destinations improving their marketing effectiveness, is divided into four distinct sections. The first sets out the theory and rationale for segmentation. Other areas look at the current methods and practices, detailing some of the main methodologies; at practical steps to introducing or developing further segmentation-based marketing activities, and finally at best practices in the area of tourism market segmentation, including the analyses of a number of case studies.