Market segmentation is a marketing approach that identifies specific groups of consumers. That help to deliver certain items or product to them in a way that fulfill their demand.
What Is Hotel Market Segmentation?
Hotel market segmentation is a method of categorizing your hotel customers into different groups based on common features.
The goal of employing hotel market segmentation is to better respond to each guest’s demands and maximize revenue through personalized experiences.
Need For Hotel Market Segmentation
Hotel Market segmentation helps to identify and segment the hotel industry’s target markets. That is based on price and booking actions.
In the hotel industry, market segmentation is critical for determining the reason for a reduction in bookings. With this information, you may develop a sales and marketing strategy to improve bookings and income.
The fundamental purpose of market segmentation is to assist you in identifying and analyzing business patterns such as:
- The length of stay
- Weekdays with the highest number of cancellations
- The busiest booking period
- Total income generated per customer
- Total revenue per room
When you separate your hotel’s business into categories, your sale team can identify the behavior of each sector.
Types of Hotel Market Segmentation
To identify the hotel market segmentation, guests are classified based on their behavior and price sensitivity. The following are some examples of typical consumer segmentation in the hotel industry:
Transients are individuals who travel independently and are not members of any organization or enterprise. They make reservations based on their preferences, hoping to get the best available rate (BAR).
This group includes businesses or corporations that send their employee and staff to hotels for accommodation. This happens when companies send employees on tours for official purposes. Hotels frequently provide corporate discounts and other incentives.
As the name implies, This refers to a group of people that traveled to the hotel together. Many hoteliers frequently give discounts to the group of people. This usually happens when the customer group does the booing of a high amount or fare.
Booking agencies and trip operators comprise the wholesale segment. They frequently make bulk bookings at cheap rates for tourists.
Segmentation Based On Customer Background and Behaviour
Typically, this section comprises complementary and overbooking segments, walk-in visitors, or guests that remain through bartering (e.g., influencers).
Other parameters for the market segmentation to reach customers are as follows:
This refers to segmentation based on your guest’s physical location, such as a country, city, or region. This assists in determining where the guests are coming from as well as their economic standing.
This element includes things like age, gender, and race. It will assist you in determining which groups of people enjoy which experiences and making plans accordingly.
Includes personality traits, lifestyle, and social class, and assists you in determining the affordability of your services for various groups of guests, including millennials.
It is based on consumer behavior patterns such as user response, attitude, and customer loyalty. This assists in determining which marketing strategies perform best for which customers.
Benefits Of Hotel Market Segmentation
Once you are done with the segmentation you will start seeing the improvement and profit gradually in the hotel. A few of the basic benefits are:
Understand What Customer Wants:
While suggesting all of your specials to every customer may appear to be the best thing to do. But some of the parts of the information may be irrelevant to them. Irrelevant information may lead to the loss of customers.
Therefore it is important to know what your customer wants, and what they can buy.
For example, if any couple is booking a table you can pitch them a private candle night dinner. Therefore, it is suitable if you do the study and knows the background of your customer.
By this, you can know your customer and you can pitch them better options to buy.
Personalizing your offers and guest interactions:
You’ve analyzed the various types of guests your hotel attract and created several attractive packages. Your main concern now is to make the correct offerings to the right guests.
On the other hand, now you know your target visitors, therefore it is quite simple for you to determine each package price as per customer group.
Personalized offers based on client profiles can result in higher conversion rates. Individualized offers demonstrate to guests that you have considered their needs and will almost certainly make them feel appreciated.
If your guest gets a personalized stay and their requirements are fulfilled then you will get the publicity by word of mouth.
Marketing According To Customer Group
When you know who is your customer, what they are looking for then it is quite simple to do the marketing.
It is suggested to conduct the marketing of the packages according to the customer. When you do the making convey the information that the customer wants.
This will increase the flow of customer in the hotel and increases the profit.
Guests thank you for taking the time to customize deals to their specific needs. Personalization is facilitated by segmentation since the most relevant offerings reach the right visitors at the best point in their customer journey.
Guests who can personalize their stay are more likely to praise their experience, spread the word about your hotel through review platforms, and boost your business’s reputation and revenue.
Please Share Views In The Comment Box.
That’s all for “What Is The Hotel Market Segmentation?”
Above all, if you want to learn about the functionality of QloApps then you can visit this link:
Qlo Reservation System – Free Open-Source Hotel Booking & Reservation System.
In case of any query, issue, or requirement please feel free to raise it on QloApps Forum.
Moreover, you can raise a ticket to connect with our experts for any assistance