What is a hotel's "market segmentation" strategy focused on?

A hotel's "market segmentation" strategy is focused on dividing guests into categories based on specific characteristics or behaviors. This can include factors such as demographics (age, gender, income level), psychographics (lifestyle, values), geographic location, and booking behaviors.

By understanding these segments, hotels can tailor their marketing efforts, services, and pricing strategies to better meet the needs of these defined groups. For instance, a hotel may target business travelers with conference facilities and faster internet, while appealing to families with larger rooms and kid-friendly amenities. This strategic division allows hotels to create more personalized experiences, enhance customer satisfaction, and ultimately improve business performance by effectively aligning their offerings with the specific preferences of each guest category.

While setting competitive room rates, creating advertising campaigns, and maximizing room occupancy are important aspects of hotel management, they are outcomes or tactics that can arise from a well-implemented market segmentation strategy rather than the focus of the strategy itself.