This paper provides an overview of segmentation research issues in the field of tourism. Several gaps in tourism segmentation research are highlighted. Research in this area is usually limited to identification of market segments. Hence, it does not address questions about compatibility, financial issues, possible resources or the implementation of segments into marketing practice. To date, there is a lack of comparative analysis of segments in tourism, in terms of both different time periods and competing destinations. Following the identification of gaps in tourism segmentation research, a holistic approach to segmentation in tourism is presented as a tool for filling these gaps. The proposed approach is an ongoing, cyclical process that can be applied by tourism destinations and tourism suppliers.