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We must know which visitors we can expect. For example, guests for a wedding (because a wedding will be held in one of the halls of the hotel), or businessmen who come for a business meeting, or a family on vacation.

Market segmentation as a term came up to describe the concept that all customers are not alike. Because in hospitality industry marketing money and resources are limited, it has to concentrate on specific groups of people, or target market, to avoid waste in time, money and quality. As a result, it’s ensuring the highest returns. [1 pp19] The reasons why segmentation is so important for hospitality industry are – more successful use of marketing money, clearer perceptive of the needs and wants of special customer groups, more effective developing of service, greater correctness in selecting promotional vehicles and techniques. [1 pp173]

Nations Hotel Corporation is one of the reputed USA based hotel company, with an international presence in 15 countries worldwide. Hospitality industries are quiet competitive in nature and today’s success rule of hospitality includes knowledge, customer satisfaction and operational efficiency which provides pleasure of stay and departure to their guests. Any addition or subtraction in these components can increase or decrease the rating of any organization. Nations Hotel with 98% brand awareness and 72% as customer satisfaction ratio were still far from the race of preferred choice amongst the customers. Hence there, arose a need to

This will lead the hotel succeeding in filling up all available capacity, which is impossible for single segment. Moreover, serving several segments also bring profits to the hotel.

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

The first part of the process is segmentation “The purpose of market segmentation is to identify relatively homogeneous groups of consumers with similar consumption patterns” (Pervez &Cateora 2014.) segmentation is the application of grouping the customers into segments which may have the same common needs or that will respond similarly to a marketing activity. It is the ability to recognise the consumers which exist that have different needs. For example do the consumers prefer speed and performance or do the customers prefer safety and quality.

Practical implications – The findings can maximize utility by (1) helping consumers identify those amenities of hotel rooms that they have to pay for as opposed to those that they do not; and (2) providing hotel managers with a

Application of revenue management techniques is perhaps the most important part of hotel operations. In this assignment I will try my best from my learning to provide

Customers in groups sharing particular wants or needs are known as market segmentation. Marketing segmentation divides the whole market of the company into segments which are targeted, using developed methods and on products so as to make basis for the company’s product in market.

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so

As a service manager, he or she should know its capacity, for example the number of rooms, the personal from low to high levels. The Harvard Business review explains, “A resort operator decided to increase the number of rooms in a lodging facility and not to expand the central services required to support the additional guests. In fact, the room rentals contribute up to 90% of total revenue and that tennis court, swimming pools, meeting rooms, parking areas, chat rooms, telephone hub. Etc. contribute almost zero in profit. So, the service managers thought those should be opportunity cost, as soon as the customers still coming to rent the rooms or He or she convinced to create imbalance in favor of revenue -producing activities. In opposite, the number of guest adjust itself to level of occupancy; the level services could support not to the level of room capacity. The room capacity beyond the level supported by the services was wasted. The benchmarking of “our” organization verse “their” organization (the competition): The Orlando, Florida lodging industries’ response to the announcement of Disney World’s opening is a

business and pleasure travelers can be split easily into separate groups. The basic idea is that hotel managers will have different marketing plans for the different types of customers. Hoteliers would like to be able to sell these segments rooms tlmt best fit tbeir needs. In tbe case of pleasure travelers, lower-priced rooms that must be booked a certain length of time ahead may be most appropriate. With business travelers, higfier-priced rooms that have no time penalty may work best. Perishable inventory. Clearly, hotel rooms are a perishable inventory item. If the room is not sold one night, that room-night is lost

Hospitality services are based on fixed points of sale, whereas hotel customers are mostly travelers,

If hoteliers have a better understanding of the expectations of their Mainland Chinese tourists, they will be better able to meet and serve this market to ensure guests are satisfied with their stay. (Tsai, Yeung & Yim, 2011).

special attention should be given to maintain quality in the case of the Hotel and