representation of market segmentation for hotels

Increase Profitability with Hotel Market Segmentation

Market segmentation is the process of dividing customers into different groups and targeting them with more customized offerings. By better understanding customer needs and preferences, hotels can tailor their services to better meet demand from each segment.

Doing so helps you in numerous ways. You’ll be able to increase occupancy rates, maximize revenue, and improve customer satisfaction with a straightforward strategy. This also allows hoteliers to adjust prices according to short-term changes in the market.

In-Depth Market Segment Assessment

In the hospitality industry, there are five core segments: individual travelers, business travelers, group business, wholesale, and other. These can be broken down into multiple sub-segments based on your specific needs.

While online travel agencies (OTAs) have made it more difficult to segment based on traditional methods — such as the purpose of travel — segmenting across distribution channels can give you a better idea of your market.

With data from your customer relationship management (CRM) and property management system (PMS), you’ll be able to clearly define the segments of your target audience you want to focus on with your segmentation strategy.

Prosper Hotels conducts an in-depth assessment that allows you to see where your current market segments are and develop the best strategies for increased profitability.

Daily Reporting

With Prosper Hotels, you’ll get access to daily reporting to see more information about your market, so you can make data-driven decisions about your marketing efforts.

Our system gives you reports on where your market is. Are they retail customers with direct bookings through your hotel’s website or third-party booking channels like travel agents? Are your hotel guests leisure travelers? Are they looking for the best available rate for business travel?

See day-by-day hotel segmentation performance and use reporting insights to remix your hotel business for better revenue results.

Segment Performance Monitoring 

Once you’ve defined your segments, we can help you monitor how well they’re performing. Various factors, from online reviews, the length of stay, weekday vs. weekend bookings, and price sensitivity, can influence performance. We’ll keep track of the most vital ones and deliver a report on how your segments are doing. 

You’ll want to turn some market segments and channels on and off as demands change. By monitoring performance with Prosper Hotels to determine when and what market segments to adjust, you’ll know which group of people make up most of your revenue so that you can create more effective marketing campaigns.

Market Segmentation Forecasting

Market segmentation forecasting is a method for predicting the performance of different market segments by considering their size, demographics, preferences, and other relevant data.

This type of forecasting is used to identify which segments are likely to outperform others in terms of sales growth or customer satisfaction levels.

Use daily reports to forecast trends and adjust accordingly. Spot potential problem areas and stop problems before they happen. Pivot your marketing strategies to ensure they remain effective regardless of market and demand changes.

Competitive Pricing Strategies

You need competitive pricing strategies to improve your occupancy rate and prevent cancellations and no-shows without sacrificing the guest experience.

Partner with the experts at Prosper Hotels to develop revenue management strategies based on market segments — not just basic consumer groups.  

You’ll know just when it’s the right time to offer discounted rates to targeted market segments that will have the right customers booking rooms fast.

Learn Why Professionals Trust Prosper Hotels with Market Segmentation Reporting

Prosper Hotels is a team of hotel industry experts with over 100 years of collective experience in hotel revenue management. With our support, you’ll gain valuable insights into your target market and save time and money.

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