Imagine a mountain resort that needs to boost business during its lower occupancy shoulder season. The marketing team decides to create two targeted email campaigns by segmenting potential guests based on market categories and characteristics. They send one personalized promotion to transient couples, enticing them with an exclusive weekend getaway package.
NB: This is an article from Revinate
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The marketing team also sends another promotion, providing adventure-seeking travelers with information on exciting outdoor activities. The result? By using this form of hotel guest segmentation the resort sees increased campaign conversions, a surge in bookings, and a host of positive reviews.
What is hotel market segmentation?
Hotel market segmentation is a valuable strategy for hoteliers aiming to increase email marketing conversions and revenue. By categorizing your hotel’s broader market into distinct groups based on factors such as demographics and geography – as well as by characteristics like whether they are transient or business travelers – you can tailor your marketing efforts to make them more effective.
Hotel market segmentation lets you personalize campaigns in ways that resonate with customers who share characteristics like the same booking patterns or lifestyle choices. Whether you’re targeting family vacationers or business travelers, personalized outbound marketing empowers you to build a deeper connection with your guests and potential guests, which is why 64% of companies consider it a top priority.
Hotel guest segmentation categories
It’s important to define and understand the specific market categories that your property serves or could potentially serve, as they provide the foundation for optimizing your marketing strategies.
Transient
Transient travelers are predominantly your impulsive, on-the-move guests. These customers seek short, often urgent hotel stays, and include guests such as spontaneous weekend explorers and business people who travel during the week. Customizing your marketing efforts to transient preferences helps ensure your hotel consistently remains their top choice.
To attract a corporate transient traveler for example, you can send out campaigns that emphasize your streamlined digital check-in process and easy access to workspace essentials, such as desks, printers, and privacy.
CNRs (Corporate Negotiated Rates)
Business travel – historically a highly lucrative segment for hotels – is on the rise again. Corporate negotiated rate (CNR) customers are business travelers who work for larger corporations that have negotiated an exclusive rate with a hotel, typically covering certain room classes, or including special extras such as high-speed WiFi or parking.
By focusing your offerings on the professional needs of CNR travelers, and promoting exclusive corporate perks, you can cultivate lasting relationships that help consistently drive revenue.
