people holding up faces reflecting different personas and the advantage of guest segmentation to help boost conversions

Imagine treating every guest the same, regardless of their travel style. Today’s travelers crave personalization. For this, guest segmentation is the most accurate answer. It’s a powerful marketing strategy that groups guests based on shared traits, like age or purpose of their trip, for example, to deliver a more relevant experience.

NB: This is an article from Bookboost

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This empowers you to resonate with each guest on a deeper level. The benefits? Undeniable. Studies show that businesses that adapt their offerings to customer segments generate 10% to 15% more revenue than those that don’t.

Furthermore, organizations with effective market segmentation strategies enjoy a 10% higher profit than companies whose segmentation wasn’t as effective over a 5-year period.

The good news? You don’t need to be overwhelmed – the average company uses just 3.5 different segmentation criteria. And you can use different tools to help you achieve this, among the most popular ones, a CRM system.

Benefits of applying guest segmentation to your strategies

Guest segmentation goes beyond basic demographics. It’s about creating distinct groups based on shared characteristics, such as travel habits, booking behavior, and preferences. By applying a correct guest segmentation, you will be able to:

  • Enhance the Customer Experience: Segment guests to tailor pre-booking to post-stay experiences with targeted communication, promotions, and recommendations.
  • Optimize Pricing Strategies: Price rooms based on segment willingness to pay, maximizing revenue with competitive rates for budget travelers and capturing full value from premium-seekers.
  • Target Marketing Efforts: Craft email campaigns with personalized messages that resonate with specific guest interests.
  • Create Operational Efficiency: Anticipate guest needs by segment, ensuring streamlined operations.

How to get started on hotel guest segmentation?

  1. Enrich your Guest Data:
    To truly understand what segments need to be created, you need to gather your data into one place. Where to? Your CRM or CDP. Gather rich guest data through website forms, bookings, and feedback surveys. Analyze this data to identify patterns and define your segmentation criteria.
  2. Start Simple:
    Begin by creating a few broad segments based on basic demographics like solo travelers, couples, or families. This allows you to practice and refine your segmentation skills.
  3. Leverage Segmentation Filters:
    Now you are ready to go further in your segmentation. For this, your CRM will be highly useful. Most CRMs let you segment guests based on demographics, booking history, behavior, and more, allowing you to create highly targeted guest profiles for personalized experiences.

Read the full article at Bookboost