Hotel Market Segmentation

Hotel Market Segmentation & Hotel Customer Segments

A hotel market segmentation built upon demographics of hotel customers reveals a wealth of information about hotel customer segments.

I recently wrote an article about demographics for this target market that reveal hotel market segments. This post provides other characteristics for that target market using my matrix market segmentation process.

Hotel Market Segmentation Reveals The Generation and Life Stages Of Hotel Customer Segments

Age reveals that the best target market for hotels is Baby Boomers in mid-life. So they make up the primary hotel customer segment.

Boomers are individualistic, sober, competitive, frugal, materialistic and stressed. They have spent most of their time on their careers and with their families. Their major concerns are their health, finances, the environment, and having an orderly world. Their information needs include overcoming stress and dealing with a changing world.

Tasks for people in mid-life include:

• Family tasks – accepting growing children, reassessing marriage, relating to teenage children and aging parents.
• Career tasks – reexamining work. Boomers comprise the greatest workaholics this nation has ever known. During middlescense many begin to question their dedication to their careers.
• Personal tasks – searching for personal values and meaning, reevaluating personal priorities and values, and adjusting to single life.
• Social tasks – reevaluating relationships and forming more committed ones.

Hotel Market Segmentation Reveals Social Class and Lifestyles Of Hotel Customer Segments

Middle class members are usually college-educated professionals who earn their income with their minds, often on keyboards. Their work involves high psychological demands, long work hours, but high levels of control and almost no physical demands or hazardous exposure.

This hotel customer segment spends much discretionary income on comfort, pleasure, time-savers, eating out and entertainment. They also spend on their health, staying young, their homes, and aesthetic treats.

Hotel market segmentation also provides insights to hotel customers’ lifestyles. Education and income indicate that the most common lifestyle among hotel customers is the Achievers lifestyle. This lifestyle comprises another hotel customer segment.

Achievers have high resources and are status-oriented. They are primarily conventional, politically conservative, and committed professionals. Because they are status oriented, they buy good products that exemplify their success. They seek social standing and security through their achievements.

Hotel Market Segmentation Reveals The Most Important Hotel Customer Segments For The Hotel Target Market

Having determined generations, life stages, social class and lifestyles, hotel market segmentation reveals characteristics that can help hotel managers to acquire new and loyal customers.

At mid-life, people begin to reevaluate the way they have lived and want to do more of what they have missed For Boomers this means less time working and more time having fun and building meaningful relationships with family and friends. Leisure travel provides both.

In addition, Boomers have lived with more stress than any other living American generation. They need the stress relief that leisure travel provides.

As mostly college-educated professionals, hotel customers also need to escape the high psychological demands of their careers, and they are willing to pay for pleasure and entertainment.

Hotel Market Segmentation Conclusion

Hotel managers can improve activities and services for their best customers by considering characteristics revealed through hotel market segmentation and tailoring their marketing to the above hotel market segments.

You can get more information about my matrix market segmentation process used in this post by completing the form below:

You can also get loads of information about using the demographics in this post at Strategic Market Segmentation.

Add to Onlywire