Dolnicar (2002), based on a subset of studies reviewer by Baumann (2000), analyzes methodological aspects of data-driven segmentation studies in tourism concluding that only a small number of the available algorithms is used by tourism researchers who prefer either the hierarchical Ward’s algorithm or the k-means partitioning algorithm. Dolnicar also identifies a number of problematic methodological standards that have developed in data-driven segmentation in tourism. To avoid data-driven segmentation studies that are of limited scientific and practical value it is important for data analysts and users to be aware of a number of basic principles upon which data-driven segmentation is based. These foundations are described in detail in the following section.