Hotel Segmentation

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The hospitality industry has evolved and continues to evolve through the process of market segmentation. The more the hospitality industry comprehends the discerning taste and preference of the guest population, the further the market becomes segmented as a result. The need for market segmentation is more prominent in the hospitality industry now because of the rapid changes in customer needs and the vast amount of product offerings. One facet of market segmentation in the hotel industry is the unique consumer segment. The idea of a unique consumer segment is relatively new in the industry which opens the need for repositioning. By identifying a unique consumer segment, a hotel can focus on and penetrate a non-traditional market encompassing guest centered focus hotels. Traditional customer segmentation approaches will be replaced by personalized service spectrums and a ‘total service model’. The guest of the future will be able to tailor every aspect of their experience including technology, hotel services, the bedroom, the journey, pricing and communications. The hotel of the future will be more personal, connected and responsive. With the rise of service spectrums and changing guest requirements it is likely we will start to see hotels that cater for multiple needs and demands. We will see innovations such as intelligent furniture, adaptive room environments, personalized entertainment, individually tailored nutrition and ‘thought control’ of guest facing systems and appliances. Amadeus and Fast Future have launched the ‘Hotels 2020 – Beyond Segmentation’ report which says hotels must embrace extreme personalization and become ‘living innovation laboratories’ to survive the turbulent decade ahead. 92% expect total personalization around their choices and 96% think hotels will adopt a strong focus on strategy and innovation to address intense global competition. The report reveals emerging behaviors and demands of tomorrow’s hotel guest and what this means...
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