Based on 13+ years advising independent hoteliers on marketing, distribution and revenue strategy, HotelMinder has seen one pattern hold: the hotels that win are the ones that know exactly who they serve and build everything around those segments.

The short answer: Segment your guests across four axes: where they come from, why they travel, who they are, and how many travel together. Then prioritise the segments that lift your ADR and smooth out seasonality. A focused mix of two or three segments beats trying to please everyone.

Having a good understanding of who your potential customers are is vital to pinning down their specific needs and creating an adapted communication and digital marketing strategy.

In this article I will help you list the key market segments identifiable for your hotel's BCG matrix and ask yourself the following questions to help you prioritise and make the right choices:

1. Where?

Where are your hotel guests from?

How far do they travel to reach your destination and hotel?

Are they local, regional, national, international?

If international, which country are they from?

Which language(s) do they speak/ understand?

2. Why?

Why do your customers choose your hotel for their stay?

Do they come for business or leisure?

  • If they're coming for leisure, what kind of experiences do they seek?
  • If they're coming for business, where are their headquarters/clients/suppliers located?

3. Who?

At which stage of their lives are they?

  • Teenagers,
  • students,
  • active young adults,
  • young couples with or without children,
  • families,
  • active seniors,
  • retired?

What is their purchasing power?

  • Low budget,
  • comfort,
  • high-end,
  • luxury?

4. How many?

Are they travelling solo, in couples, small or large groups?

Which kind of groups do you receive?

  • Friends / families,
  • clubs / associations,
  • seminars / team-building?

What Is the Hotel Marketing BCG Matrix?

Hotel Marketing BGC Matrix
Download our BGC Matrix for Hotel Marketing Managers as a PDF file, Microsoft PowerPoint file. You can also access our Google Drive version of the file that you can add to your Drive and edit directly.

Also, ask yourself the following for each key hotel customer segment:

  • Is there a specific period in which they prefer to plan and book their trip?
  • How long do they usually stay?
  • Which days of the week?
  • Which time of year?
  • What are their specific needs?
  • Do you have all the corresponding features in your hotel to ensure their satisfaction?

How Do You Identify Your Hotel's Priority Customer Segments?

By attracting the right customers and having a good mix of the different market segments, you can optimise your hotel ADR and also mitigate the effects of seasonality which is vital to your hotel's rentability!

Where to Take Your Segmentation Next

Knowing your segments is step one. Acting on them is the work.

With HotelMinder, match with vetted hotel experts to solve your operational problems.

Consult with an Hospitality Expert
  • Access specialists to boost occupancy, ADR & revenue.
  • Effortlessly upgrade your technology and online presence.
  • Quickly solve complex distribution and technology challenges.
Browse Experts
Not sure where to start? Get in touch

Hotel Customer Segmentation: Common Questions

What is hotel customer segmentation?

It is the process of grouping your guests by shared traits so you can market to each group differently. The most useful traits are where guests come from, why they travel, who they are, and how many travel together.

Why does guest segmentation matter for a hotel?

Because you cannot sell the same way to a corporate solo traveller and a family on a summer break. Segmentation lets you tailor pricing, messaging and channels to the guests who are actually worth the most to you.

What are the main hotel market segments?

The common ones are leisure versus business, domestic versus international, by life stage and budget, and by group size. Most independent hotels serve three or four core segments, not one.

How do you identify your most profitable customer segments?

Look at which segments hold up your ADR, fill your low season, and cost the least to acquire and serve. A segment that books direct, stays longer and travels off-peak is usually worth more than a high-volume, low-rate one.

How does segmentation affect hotel ADR?

A deliberate segment mix lets you protect rate during peak demand and backfill quieter periods with the right guests. Chasing every booking at any price is what erodes ADR.