Get a watermark-free, fully customizable customer segmentation in our business plan for a hotel
Knowing your guests is the foundation of a thriving hotel business.
Let us navigate you through the essentials of customer segmentation for your hotel, helping you to customize your services and marketing strategies to meet the diverse needs of your clientele.
By understanding who your guests are and what they value, you can ensure that your hotel not only draws in a variety of travelers but also provides them with an exceptional stay.
And, if you're looking for a ready-made customer segmentation to adapt and use, be sure to check out our hotel business plan template that's fully customizable for your convenience.
What is exactly a "customer segmentation"? Should you make one for your hotel?
Customer segmentation is the practice of dividing your hotel's potential and existing guests into groups that share common characteristics.
Think of it as drawing a detailed portrait of who your guests are, from basic demographics like age and income to more specific attributes such as travel motivations and preferences. The aim is to grasp the varied requirements and behaviors of your guest population so you can customize your accommodations, amenities, and marketing efforts to each distinct group.
Why do hotel owners and marketers invest time in customer segmentation? Simply put, not all guests have the same needs or desires.
Different segments may seek different experiences, amenities, and reasons for choosing your hotel over others. By pinpointing these segments, you can adapt your room types, facilities, and promotional strategies to resonate with each group's unique tastes and expectations.
For instance, business travelers might prioritize high-speed internet and meeting facilities, while vacationing families may appreciate child-friendly activities and spacious rooms.
The advantages of effective customer segmentation, similar to what you'll discover in our business plan template tailored for hotels, are significant and impactful. It leads to more precise marketing, which can result in better conversion rates and a more strategic allocation of marketing funds.
Customizing your service and accommodation offerings to align with the specific needs of different guest segments can boost satisfaction and loyalty. Plus, understanding your customer segments can inform decisions about room configurations, amenities, and service improvements, positioning your hotel as the go-to choice for a variety of travelers.
Should you engage in customer segmentation if you're launching a new hotel venture? Undoubtedly.
Knowing who your guests are and what they expect from the start can provide you with a substantial competitive advantage. It allows you to craft your hotel's concept, amenities, and marketing plans with a sharp focus on satisfying the needs of your target segments. This targeted approach can help you swiftly cultivate a dedicated guest base and stand out in a competitive industry.
Is customer segmentation useful for you? Indisputably. Whether you're in the initial planning phase or aiming to expand an established hotel, recognizing the different segments within your guest base is crucial for making well-informed choices. It affects everything from the promotions you offer to the training you provide to your staff.
Moreover, customer segmentation is not a set-it-and-forget-it endeavor; it's a continuous process. As market trends shift and your business grows, regularly reviewing and updating your customer segments can ensure that your hotel remains attuned to the evolving needs and preferences of your guests.
How to segment customers for your hotel?
To create customer segments for your hotel, begin by examining your guest data to uncover patterns and common characteristics, such as travel purpose, booking preferences, and spending behavior.
Next, categorize guests into segments based on these shared attributes to customize marketing campaigns and service offerings to meet the specific needs and desires of each group.
To streamline the process for you, here is a 10-step action plan to develop a meaningful customer segmentation for your hotel.
| Step | Action | Details |
|---|---|---|
| 1 | Collect guest data | Gather information through booking systems, surveys, and online interactions. |
| 2 | Analyze booking patterns | Examine what types of rooms are booked, when, and the duration of stays. |
| 3 | Identify demographic factors | Group guests by age, gender, nationality, income level, etc. |
| 4 | Consider psychographic elements | Classify guests by their lifestyle, travel motivations, and preferences. |
| 5 | Evaluate geographic origin | Segment based on where guests are traveling from. |
| 6 | Create guest personas | Build profiles for each segment to better understand their expectations. |
| 7 | Assess guest value | Calculate the profitability and lifetime value of each segment. |
| 8 | Select target segments | Decide which segments to prioritize based on their potential value and your strategic goals. |
| 9 | Customize marketing approaches | Develop targeted marketing strategies for each segment. |
| 10 | Review and adjust segments | Continuously evaluate and update segments to reflect evolving guest behavior and market trends. |
What are some examples of audiences and customer segments for a hotel?
Below is a table with 10 examples of customer segments for a hotel.
| Name of the Segment | Description | Preferences and Budget |
|---|---|---|
| Business Travelers | Professionals traveling for work, seeking convenience and comfort. | Medium to high budget, prefers hotels with business amenities like Wi-Fi, meeting rooms, and convenient location. |
| Leisure Travelers | Individuals or groups traveling for pleasure, looking for relaxing and enjoyable accommodations. | Varied budget, prefers hotels with recreational facilities, tourist-friendly location, and quality service. |
| Families | Parents with children in need of family-friendly amenities and services. | Varied budget, prefers hotels with family rooms, pools, and kid-friendly activities. |
| Couples | Those seeking a romantic getaway or quality time together. | Medium to high budget, prefers hotels with intimate settings, special packages, and upscale dining. |
| Budget Travelers | Travelers looking for the most cost-effective lodging options. | Low budget, prefers hotels with basic amenities, clean rooms, and affordable rates. |
| Backpackers | Adventurous travelers, often young, looking for a social and affordable place to stay. | Low budget, prefers hostels or budget hotels with communal spaces and kitchen facilities. |
| Event Attendees | Guests attending conferences, weddings, or other events, often in groups. | Varied budget, prefers hotels with event facilities, group rates, and proximity to event venues. |
| Luxury Seekers | Travelers desiring a high-end experience with premium services and amenities. | High budget, prefers luxury hotels with spa services, gourmet dining, and personalized attention. |
| Eco-Conscious Travelers | Guests who prioritize sustainability and environmentally friendly practices. | Medium to high budget, prefers eco-friendly hotels with green certifications and sustainable operations. |
| Long-Term Guests | Travelers needing extended stay options, such as corporate relocations or long projects. | Medium to high budget, prefers hotels with kitchenettes, laundry services, and a home-like atmosphere. |
Examples of customer segmentation for a hotel
Below are three different (very concise) examples of customer segmentations tailored for a Boutique Hotel, a Business Hotel, and a Family Resort.
Boutique Hotel Customer Segmentation
| Customer Segment | Characteristics |
|---|---|
| Couples on Romantic Getaways | Seeks intimate and personalized experiences, values unique design and luxury amenities. |
| Art and Culture Enthusiasts | Appreciates aesthetic surroundings and proximity to cultural attractions, desires an immersive local experience. |
| Discerning Solo Travelers | Looks for a tranquil environment with high-quality service, values privacy and bespoke experiences. |
| Special Occasion Celebrants | Customers celebrating milestones, looking for exclusive and memorable stays. |
Business Hotel Customer Segmentation
| Customer Segment | Characteristics |
|---|---|
| Corporate Clients | Requires convenient location, business amenities like meeting rooms, and efficient service. |
| Conference Attendees | Seeks comfortable accommodations with easy access to conference venues and networking opportunities. |
| Short-term Business Travelers | Values expedited check-in/check-out, reliable Wi-Fi, and in-room workspaces. |
| Extended Stay Professionals | Looks for comfortable long-term accommodations with kitchenettes and laundry services. |
Family Resort Customer Segmentation
| Customer Segment | Characteristics |
|---|---|
| Families with Young Children | Seeks family-friendly activities, child care services, and accommodations that cater to young ones. |
| Multi-generational Families | Looks for a variety of entertainment options suitable for all ages, from grandparents to grandchildren. |
| Groups Seeking Leisure | Values a mix of relaxation and activity options, such as pools, spas, and sports facilities. |
| Event Planners | Interested in venues for family reunions, weddings, and celebrations, with group accommodation options. |
You can also read our articles about:
- how to fill a Business Model Canvas for your hotel
- how to study the competitors of your hotel
- how to elaborate a marketing strategy for your hotel
- how to open a hotel (guide)