The hospitality industry (e.g., hotels, cruises, restaurants, theme parks, and casinos) and the airline industry share some special characteristics in terms of product nature and cost structure. The product is perishable or non-storable, and the supply is generally limited. These industries usually adopt the strategy of market segmentation and have to carefully price and control the inventory of their products so as to maximize the profit. This study modified the dynamic programming (DP) model in the prior researches for market segmentation to take into account the promotion decision. Given the aggregate demand curve, the optimal number of segments, the associated prices and supply quantities, and the promotion decisions can be determined. A numerical example based on the case of hotel rooms is tested to illustrate the developed DP model.