Market segment meaning in hospitality

Market segment refers to a group of customers who have similar characteristics, needs and behaviour. In hospitality we segment our potential guests into these segments to better understand and cater to their needs. Common market segments are business traveller, leisure tourist, family, solo traveller and luxury seeker. Each segment has different preferences for accommodation, amenities and services.

Segmenting the market helps hospitality businesses to tailor their offerings and marketing. By understanding the needs of different segments you can create targeted promotions, design packages and train staff to provide personalized service. This will increase guest satisfaction and revenue, and help you stand out in a crowded market.

Let’s say you have a boutique hotel in the city centre. You’ve noticed an increase in millennial business travellers for short stays. To segment this market you might introduce a co-working space in the lobby, grab-and-go breakfast options and an app for check-in and room service. You’d also adjust your social media to promote these new features to attract more guests from this segment and increase your occupancy.'