Hotel market segmentation is a very critical activity in the modern hospitality industry. Many hotels are adopting different segmentation strategies to reach out to diverse targets and provide a variety of goods and services for their customers. Consumers demonstrate a difference in behaviors depending on their individual needs and budget requirements. The process of market segmentation in the hotel industry helps to outline the significance of trips, whether leisure based or for commercial or business purposes. The price is insignificant in market segmentation. There is a need to establish the distinction between the group business and activities from individual business and activities. Detection of business patterns and trends such as extended stays, commercial, meetings and leisure can be detected through segmentation.
High levels of competition have resulted in hotels embracing extended stay segmentation. The Homewood Suites is one of the hotels offering extended stay segmentation. Extended stays provide clients with high-quality services to allow them to have a comfortable stay at the hotel. Hotel segments comprise of the leading segmentation in raising the hotel profit margins (Butters & Hubbard, 2019) . Extended stays are advanced and facilitated by the levels of satisfaction of the visiting guests. Extended stays segmentations have a huge potential to transform the hospitality industry. Extended stay segmentations have essential characteristics such as in-room kitchen with unique, differentiated brands designed to serve the customers interest. Other features of extended stay segmentations are limitations of housekeeping complemented by breakfast.
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Increasing competition in the hotel industry has seen hotels extending and investing more in meeting segmentations. There are essential requirements for a meeting to be successful and achieve the optimum positive results. The meeting venue and availability of beverages are critical in meeting segmentation. Hotels have continued to take a position that allows them to have all facilities for clients intending to hold meetings in their institutions. The Hilton hotel in Chicago is an example of a hotel adopting meeting segmentation. The hotel has invested significantly in technology to facilitate meeting segmentation. The hotel offers enough privacy for people holding private meetings such as those in insurance and financial meetings.
On the other hand meetings such as medical and pharmaceuticals are offered an elastic price menu. These categories of meetings are also provided with sorted out bills to determine the bills of individual attendees. Leisure segmentations comprise another essential category of hotel segmentation; hotels provide a wide range of recreational activities for their clients. The services are provided depending on family needs and the visiting groups depending on whether it is a family or other groups (Gultek & Heroux, 2019) . Some essential recreational facilities include travels. Client seeking leisure requires experiences of relaxation or rest, sports practicing grounds, an ample time to share time with the family and friends, an opportunity to meet new people and discovering new cultures and language. Hotels provide all these services under the leisure segmentation.
Market segmentations are important to the organizations offering the services and also the customer’s enjoying the benefits. The benefits of market segmentations are derived from the categories of segmentations discussed above. The extended stays segmentation enables organizations to raise a significant amount of revenue. Availability of client-friendly facilities encourages clients to extend their stays in hotels increasing the revenues in the hotels with this category of segmentation. Research into market segmentation helps to establish the needs of the customers. Identification of consumer needs and devising ways to achieve them is critical in developing consumer loyalty and experience. A great customer experience gained through extended stays segmentations helps the hotel to attract new clients further increasing revenue margins.
Meetings segmentations play a critical role in increasing the popularity of organizations. Meetings bring together many people from diverse backgrounds such as work, family and even friends. Providing meeting segmentations offer consumers an opportunity to learn about the hotel organization as well as the services provided by the hotel facility beside the meetings facility. Clients coming in as clients in meetings are likely to revisit the hotel organizations for other uses. Provision of high-quality meeting segmentation services enables hotels to attract more clients intending to hold meetings, increasing the revenue and profit margins.
Meeting segmentations also allows the organization to learn about the needs and wants of the potential customers by acting to the feedback from the clients in meeting segmentation. Through segmentation, hotel organizations are able to reach out to their customer's needs and want in a more precise way. Hotel organizations obtain a number of benefits through leisure segmentation. In the contemporary world, many people are moving out to have fun with friends and family. During these visits, clients explore and learn about the hotel organizations offering a diversity of leisure activities for their clients (Butters & Hubbard, 2019) . Through research, clients learn about organizations increasing their popularity. Groups coming into hotel organizations for leisure activities are likely to refer their friends in the case they have an outstanding customer experience.
Segmentation in the hotel industry has enabled hotels to attain a wide range of benefits. There are three basic levels of segmentation in the hotel organizations; extended stays segmentation, meetings segmentation and leisure segmentations. The three categories have several benefits to hotel organizations. Hotel organizations that seek to increase their market share and gain significant revenue and profit margins should invest in segmentation. Failure to adopt segmentation practices could result in challenges in increasing competitive edge in hotel organizations. Segmentation in hotel industry requires significant investment in technology. Technology facilitates offering online services more convenient for clients.
Reference
Butters, R. A., & Hubbard, T. N. (2019). Industry Structure, Segmentation, and Competition in the US Hotel Industry (No. w26579). National Bureau of Economic Research.
Gultek, M., & Heroux, L. (2019). Marketing Strategies of Alternative Revenue Sources for Full-Service Hotels in the United States and Canada: A Comparative Revenue Management Approach. Journal of Tourism and Hospitality Management , 7 (2), 1-9.
