Identify, Segment and Target your Hotel Customers

Having a good understanding of who your potential customers are is vital to pinning down their specific needs and creating an adapted communication 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?
  • Rest/relaxation,
  • to practice sports,
  • share quality time with their friends/family,
  • to meet new people,
  • to learn and discover a new language/culture?
• 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?

Identify your hotel’s priority customer segments

Make a list of all the relevant market segments and classify them in one of the four quadrants of the BCG matrix to set your priorities.

BGC Matrix for Hotel Marketing Managers

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?

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!