For hotels, segmentation is key

Looking at segmentation isn't just about recognizing trends; it's also essential because it serves as primary strategy for enhancing profitability

Mar 11, 2024

A shift in consumer behaviors may lead some hoteliers to believe there are blurred lines within customer segmentation and that categories no longer serve a clear purpose. A group of hospitality experts, however, say that's not the case.

Key takeaways

  • The traditional breakdown is business and leisure, which is further broken down into transient, corporate negotiated, group, wholesale and other;
  • Hoteliers should still be able to identify the original impetus of what brought the guest to a property even if it feels blurred at times;
  • Not every guest spends the same either. Group travelers and those with corporate cards might have higher ancillary spend than a family staying for leisure.

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