Travel Market - Segmentation

The one I am going to choose for Afro-Caribbean Restaurant is Behavioural variable because a customer who has bought something from Afro-Caribbean Restaurant and is given a discount coupon or other sales material has witnessed behavioural segmentation. Therefore, do potential customers who

For instance, in the hospitality industry, the Hilton brand symbolises high-end properties, elevated quality of service and a unique guest experience. Brand name and brand image are essentially two factors that differentiate companies which operate in the same industry and market. Therefore, the brand name must be unique. Hotel companies like the Hilton have established strong national brands and seek to use them globally with an intention of increasing profits. Once its established as a global brand, the company has successfully created an international image that can lead to increased efficiency through branded marketing efforts and cost savings on a much larger scale. Nowadays with an increase in international travel, the competition among international hotel corporations is becoming a lot more competetive. Those tourists that travel to foreign countries tend to stay in one of the known hotel brands and their standardised quality of service. Hotel chains are motivated to maintain a high rate of global expansion as a key marketing strategy of creating brand loyalty (King,

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]

Though there has been growth in the luxury market, customers are increasingly identifying with other strong hotel brands. In addition, the market is getting more crowded. In 1996 Rosewood and its key competitors had 165 properties combined. Today that number has almost doubled to 310, with 120% growth specifically

As there are many type of tourism, how could businesses capture their potential customers with these types of travel? It is a simple question but it is not easy to answer. Regarding to the purposes of traveller to visit a destination, there are able to divide a number of travellers or tourists into smaller groups.

The buyers of the services of travel agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a small degree of concentration, due to the wide range of services.

Within the luxury tier, many of the players do not actually own the hotels themselves, but instead manage the operation of the business, similar to that of FSH. In the luxury segment, competition for acquiring new management agreements becomes very high as hotel owners make their choices based on the quality and value of a company's management service and most importantly, its brand name. Moreover, guests who choose to stay in luxury hotels are commonly not very price sensitive, and thus it is essential that a hotel distinguish itself amongst its competition by providing value added services as well as maintaining an untarnished, reputable brand name and image.

The luxury and destinations segments are similar in that both of them target the upper class or those with healthy disposable incomes including retirees that are at a stage in their lifecycle allowing them to take longer, exclusive cruises often. People on these cruises demand the finest quality in all respects. A formal atmosphere with refined white glove service, along with personalized service accounts for value and satisfaction. Psychologically, these users are above all and deserve the best of the best. Therefore, their lifestyles allow them to be regular and heavy users of cruise vacations. Based on their preference, it can be assumed that these segments are hard core or split loyal to the brands they choose because their attitudes are very enthusiastic towards the type of experience they expect and may be hostile towards anything less. The type of ship is small for both segments, representing the small percentage of the market occupied. Therefore, little priority should be placed on targeting these segments. Users that decide to buy this cruise package will be for the sole psychographic reason of social status to

As mentioned earlier in Chapter 1, China Lodging Group is a multi-brand hotel group which as per now manages seven hotels with each having a specific target of customers. These Hotels are Hi Inn, Han Ting Hotel, Elan Hotel, Star-way Hotel, JI Hotel, Manxin Hotel, and Joya Hotel. Its mission statement is to create great brands of hotels that guests love. The group predicts to be owning over a quarter of the hotel market share in the next five years to come. The two major objectives that the company has set for the next five years to ensure that they attain their goal is to build one large five-star hotel in the heart of China Capital’s serene outskirts and to ensure that they hire enough

The Ritz-Carlton Hotel Company operates within the upscale & luxury hotel industry. While it could be argued that Ritz-Carlton operates in the more broad and inclusive lodging industry, they offer a highly differentiated product and service and therefore find themselves operating in an exclusive industry alongside very few direct competitors, such as Four Seasons Hotels, HongKong and Shanghai Hotels, and Starwood Hotels & Resorts. Therefore when analyzing this industry I will not be including cheap hotels, motels, lodges, or inns, unless to offer potential substitutes to luxury hotels. In order to assess the attractiveness of the upscale & luxury hotel industry, an analysis of the general environment surrounding the industry must be

Essentially, the marketing manager will seek to understand how a competitive advantage may be gained over other competitors (Lemon et al 2002). Figure 1 shows that Hilton Hotel Corporation is one of the leading hotels in the world. Nevertheless, as a newer hotel in Melbourne, Hilton is facing some serious challenges from competitors such as Grand Hyatt Melbourne and Sheraton Melbourne. Grand Hyatt Melbourne has completed its four year refurbishment project. Meanwhile, Sheraton Melbourne Hotel will launch a new full service as part of a 2013 development, combining hotel services with up-market residences and boutique retail (Melbourne Planner’s Guide 2011-2012, 2011). It is critical for Melbourne Hilton Hotel to understand visitors’ wants in order to satisfy visitors. In addition, Melbourne Hilton Hotel needs to have a good understanding of the competition in

| Yes – The only resort targeting the luxury premium market then, its differentiating “Banyan Tree experience” leads consumers to choose BT over its rivals.

The hotels that we are writing about are The Ritz Carlton Singapore, the Intercontinental Singapore Hotel and the Marriott Singapore. Our main hotel will be the Ritz Carlton Singapore. We chose the hotels as they pose as prominent hotels in Singapore and they are also known overseas as well. Although they are quite similar, there are also several differences that can be seen as well. They are also very distinct in branding, and value their brands very highly. All three hotels boast amenities and services that will cater to a majority of their customers. As well as an experience that they believe we will value as customers.

Chan, ESW & Wong, SCK 2006, ‘Hotel selection: when price is not the issue’, Journal of Vacation Marketing, vol. 12, no. 2, pp. 142-159, (Online Sage).

In addition, with Singapore being a well-established hub for various sectors such as the finance and medicine, business travel in Asia has seen an increase by 20% compared to 2009 (Channel News Asia, 2010). With a rebound in Asian business travel, hotel occupancy in July hit a high of 90% an increase of 10.2% from 2009 and hotel room revenue grew 37.2% (The Business Times, 2010). Being the “Best Business Hotel in the World, Asia-Pacific and Singapore” as awarded by Business Traveller (Shangri-La, 2010), the surge in business travels is definitely advantageous to Shangri-La.