What is the meaning / definition of Market Segments in the hospitality industry?

Not all customers are the same. Although, of course, all guests must receive the same high standard of service at a or other kind of facility within the Hospitality Sector, there are definitely different types of customers. And offering them a hospitality experience that entirely meets their particular type and exact needs is the key to a providing an enjoyable hotel stay, where satisfaction is virtually guaranteed.

So, how can this differentiation in customer types be best organised? The answer is to devise a system of segments, known in Hospitality as Market Segments.

Market segments can be:

  • Geographic
  • Behavioural
  • Psychographic
  • Occasional
  • Cultural

Just as there can be:

  • Multi-variable account segmentation, and
  • Segmentation by benefits!

Once segmentation is achieved, segment-specific services and activities can be organised, helping to provide customers with a tailored hotel experience whilst simultaneously contributing towards a ’s profit maximisation.

Other segments can be:

  • Public
  • Promotions
  • Negotiated Rates
  • Groups, and
  • Wholesale

See Also:

  • Market Intelligence

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