Market Segmentation Market segmentation involves sub dividing the market into parts based on distinctive needs. Generally, segmentation can be based on geography, demography, psychographic, behavior, etc. In passenger transport, market segmentation can be done broadly in terms of modes of transport such as Rail, Air, Road, Water, etc. Further, customers can be segmented in terms of *Journey Purpose *Age *Social Status *Destination The idea for carrying out market segmentation is to ensure that each segment (niche) is served according to the special needs of customers in that segment. Some other examples of customer segmentation include the following: *Commuters: These are regular, time sensitive, and normally at regular times. *Business Travellers: These are likely to be working while travelling and are also time sensitive, etc. These might need comfort and availability of other facilities such as catering services, internet facilities, power points, etc. *School/College Students: these are sensitive to time, regular travellers at regular times, Reliable service and require/consider safety. *Senior Citizens: These need flexible journeys, common destinations, access to lower fares, Availability of seats, Safety, etc. *University Students: These are usually Irregular travellers. They may require cheaper fares *Holiday Travellers: These are often a group travel and also time sensitive.