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Peace and quiet or hustle and bustle? Aromatherapy massage or kids’ pools? Fast internet access or soundproof spa? Do you know what your guests want?
Knowing the needs and preferences of your main clientele is essential for any hotel manager. If you know your guests, you can easily categorize them and tailor your marketing and sales activities based on the needs of different groups. In marketing, this is called customer segmentation. Processing of available guest records and segmentation plays a very important role in the hotel industry, but this task is somehow often pushed into the background.
In my blog post I’ll show you a simple segmentation method that requires only the birth records of your guests. Here is the generation-based segmentation...
Gen Z is the youngest generation who can make independent travel decisions. They’re the first grown-up digital generation with characteristics radically different from their elders’. They have different needs, priorities, travel and entertainment - and spending habits an they are also extremely informed thanks to the internet.
Gen Z is a huge market and makes up 30% of the Earth’s population. They’re young and they love to travel. Exploration and experiencing new things are the most important things in their lives ,so Gen Z represents a huge business potential for tourism and hotel industry too.
Many of them work remotely so they can get their jobs done while traveling. Even after the Covid-19 travel restrictions, Gen Z's were the earliest international travellers. The are experienced globe-trotters, but many of them also look for special, exclusive and authentic places. They prefer to spend on experiences rather than expensive hotels. Technological innovations, stable and fast internet access are on the top of their wish list.
Generation Y can be divided into two groups. Some people prefer to focus on their work and do not have a family yet. They’re typically guests traveling alone, with their partner, or with friends. They are the ones who want to recharge between two tiring work weeks. They usually vacay several times a year, but for shorter periods. Their average stay is 2-4 days long. A term has already appeared in the industry for these mini-holidays, namely “micro-cations”.
The other group is those who travel with their babies and children. They also stay for shorter periods, but their needs are different from the previous group. They usually look for baby and/or family-friendly hotel services.
Two groups should be taken into consideration. Families traveling with older children or teenagers, and groups of friends or couples where children have already grown up. Members of this generation are more likely to travel durign those periods where weekends or national holidays are included, thats how they are managing their limited paid holidays.
When choosing your target group, you need to consider not only the facilities and services of your hotel but also your other guests needs. If your hotel is known for its epic stag parties, this generation will probably not be the one you should be targeting.
This generation is close to retirement or is already retired. They typically have a bigger budget and more free time. This means that they travel more often and/or spend more money and time in a particular destination. They’re more likely to sign up for a loyalty program.
During their travels, they enjoy local experiences, visiting authentic restaurants and taking sightseeing tours. They typically look for a calm, quiet environment to relax. High comfort is important to them and they spend a lot of time inside the hotel. The availability of recreational and spa services plays a major role in their choice when it come to making a reservation in a hotel.
If we learned something during the Covid-19 pandemic, it is that tourism is one of the most sensitive industries. It’s worth having a stable and diverse business to get through difficult times. If you are running a hotel, you can achieve this by targeting more than one guest type. With the right management and tools you can meet different needs and even become the favorite hotel for many generations.
Join us next week too as we introduce a more common form of segmentation that could redefine your overall sales strategy.
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