Hotels and the Importance of Demand Segmentation

One of the most important concepts when it comes to managing and marketing hotels is demand segmentation. Among other things, segmenting the market helps an establishment identify key areas to focus on, as well as the primary target demographic that the business will cater to. Of course, identifying key areas does not mean you just focus on one group. Demand segmentation helps identify all types of customers that book a suite, reserve a function room, or eat at the hotel's restaurant. Market segmentation also makes a wide gamut of information available to the people who run hotels and make business decisions. These pieces of information include numerous aspects of the clientele, such as range, social class, lifestyle, age group, and business type. This data is important to identify particular needs associated to a particular demographic, allowing the hotel to cater to more specific needs should the need arise. This information is also useful when it comes to implementing new marketing strategies. Which amenity is most appealing for new clients? What would be the best feature to emphasize in order to attract more guests from a particular segment? What activities appeal most to this or that age group? Those questions are just a few of the ones that can be answered thanks to a determined effort when it comes to market segmentation. Each segment hotel management identifies has a relationship to other segments. The dynamics between these segments is important to assess critical points in the business as well as in making improvements to the approach and execution. Additionally, each segment on its own demands special attention to detail and care in formulating plans and services. Common segments encountered in day-to-day hotel activities include the business-oriented commercial segment, the corporate segment, and the leisure traveler segment. There are many complex dynamics that are involved within each segment, and some of these dynamics are subject to change, depending on the current state of the economy. For example, the leisure segment is definitely dependent on the outlook of leisure travelers. Much like during the recent global recession, many leisure travelers were cutting costs or even canceling out a lot of planned trips because of a limited amount or lack of disposable funds. The business segment, on the other hand, is more consistent and more solid, because of the relatively constant demand generated by various businessmen and companies. With this in mind, it is important for hotels to have dedicated analysts that can sort out the piles of information. Data is one thing, interpretation is another. It is not enough to identify the segments; it is equally important to find an effective way to implement changes to the service. Market demand segmentation is, without a sliver of a doubt, one of the most important concepts when it comes to starting and maintaining a hotel or other type of establishment in the hospitality industry. A lot of information about the customers is revealed to the management, and this way, hotels can adjust their strategies accordingly to fill the needs of their guests. With market segmentation, establishments will have a clearer picture of who their clients are, and they will also have a better idea on how to better serve each and every client. Hotels and the Importance of Demand Segmentation is a post from: Traveling China from Traveling China http://www.chinaya.org

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