Segmentation of Hotels

sunandaC

Sunanda K. Chavan
To make the marketing decisions effective, it is essential that the hotel professionals segment the market in such a way that the task of identifying the changing needs and requirements of different segments is made easier. Segmentation proves to be an important commandment of marketing since this helps in making and innovating the marketing decisions.


All the users, of course have their own likes and dislikes because the food habits are different the drinking habits are different; the expectations are different- The kids, teens, youths, men, women, married and unmarried, youth and grey, technocrats and bureaucrats, business executives and political representatives stay in hotels with diverse motives. Segmentation makes the ways for knowing their uniqueness and formulating the submixes in such a way that an optimal development of marketing resources is made possible. It is against this background that we go through segmentation for the hotel organisations.

Normally the hotel companies are found located at places of demand and therefore it is not realistic that the distribution is equal.

The Federation of Hotel and Restaurant Association of India" has divided the country into four geographic regions, viz. Northern region covering Delhi, UP, Rajasthan and other northern states; Calcutta Region covering Orissa, West Bengal and other eastern states; and Eastern UnionTemtories including Andaman and Nicobar islands; Western Region covering Maharashtra, Gujarat, MP and Goa and Southern region covering Andhra Pradesh, Kamataka, Tamil Nadu, Kerala and the Union Territory of Pondichery.


It is natural that the distribution is lop-sided since all the regions are not conducive to the rich infrastructural facilities and the profitable marketing opportunities.

The demand for accommodation is not uniform either due to non-accessibility or due to the non-availability of basic transport facilities. Some of the regions are better placed whereas some of the regions face a crisis like situation. In addition to the geographic consideration, we also find psychographic considerations important to segment the market. This is on the basis of psychographic variables which refer to life cycle, buying motives and knowledge of prospects regarding the services.

The psychographic variables vary from segment to segment. The psychological considerations are found instrumental because the hotel professionals come to know about the behavioural profile of different users living in different segments.

With a view to maintaining standards and enforcing control, the Department of Tourism Ministry of Tourism and Civil Aviation. Government of India has developed a system of categorising the available accommodation as per certain criteria. Accordingly, the hotels are either approved or un-approved. The approved hotels are found of international standard and normally the foreign tourists prefer to stay in that category of hotels.

This is due to the fact that the approved hotels have the stamp of official recognition. Approval in itself simplifies the task of promotion. The hotel professionals bear the responsibility of identifying the emerging segments.

Of late, we find a new trend even in the Indian condition because women have been found staying in hotels or eating in hotel restaurants. There are women executives and women going on holidays in all age groups, albeit without accompanying men. A number of married women have been found taking an extra holiday on their own. Middle-aged, divorce or single women have also been found staying in hotels. It is against this background that we find women segment emerging as an important segment for the hotel business.

The single-parent market is also to emerge as a new segment for the hotel business. In this category, we find unmarried mothers with very little money. The separated and divorce men and women are also found in this category. This new segment is found profitable to the hotel industry since good number of single parents have been found spending more than they can afford. The propensity to spend of this segment is found at its peak.

With the passage of time, we find a change in the lifestyles. We can't deny that increasing domination of corporate sector in the national economy and developing new corporate culture in the Indian society has change in the lifestyles ofprospects in general.

A good number of persons now appreciate physical fitness. It is essential that the hotel professionals know about this segment and provide the essential facilities in the hotels like gym, sauna, and the swimming pools including a circuit of exercise machines. The availability of personal care services close to the hotels or in the hotel complex itself would attract customers.

The emergence of Instant Market also draws the attention of hotel professionals. Today we find everyone moving fast and no one likes to wait for long time.

This has made ways for the development of the concept of fast-food restaurants and quick access to service facilities in hotels. Increasing us of credit cards has actually changed the traditional concept of making payments. It is against this background that we find quick disposal of customers drawing the attention of hotel professionals. Buying at a short notice is now found increasing.


This makes it essential that hotels have now in-built systems to take full advantages of this new development. Instant services are thus need of the hour and the hotels and hotel companies are required to perceive it in a right fashion and to innovate their services accordingly.

In view of the above, it is right to say that hotel professionals need to have an indepth study of market segmentation so that the needs and requirements vis-a-vis the level of expectations of different segments are studied and the marketing resources are developed accordingly.


This would help senior executives and the policy makers in innovating new services or packages which are yet to be common in the hotel business. Hotels should have something better to serve. The guests should feel that they are getting additional, special comforts in the hotels.


The availability of modern amenities and facilities, the construction of hotel apartments and cottages, the development of tennis courts and Gym centres, are some of the new developments found very much instrumental in attracting the customers- The hotels and hotel companies need to be aware of the emerging newtrends in the society and are supposed to ensure that the guests gel something more in hotels than those in their private homes.



We can't deny the fact that even today we find a number of hotels without modern personal care amenities and facilities. If we find some of the hotels thriving, this is due mainly to the fact that hotels are old, unusual, nostalgic or historic.


This makes it clear that if the hotels are with unique attractive features, the customers would be attracted. The old palaces and havelis are of late used as hotels and albeit the high spending tourists prefer to stay there.
 
To make the marketing decisions effective, it is essential that the hotel professionals segment the market in such a way that the task of identifying the changing needs and requirements of different segments is made easier. Segmentation proves to be an important commandment of marketing since this helps in making and innovating the marketing decisions.


All the users, of course have their own likes and dislikes because the food habits are different the drinking habits are different; the expectations are different- The kids, teens, youths, men, women, married and unmarried, youth and grey, technocrats and bureaucrats, business executives and political representatives stay in hotels with diverse motives. Segmentation makes the ways for knowing their uniqueness and formulating the submixes in such a way that an optimal development of marketing resources is made possible. It is against this background that we go through segmentation for the hotel organisations.

Normally the hotel companies are found located at places of demand and therefore it is not realistic that the distribution is equal.

The Federation of Hotel and Restaurant Association of India" has divided the country into four geographic regions, viz. Northern region covering Delhi, UP, Rajasthan and other northern states; Calcutta Region covering Orissa, West Bengal and other eastern states; and Eastern UnionTemtories including Andaman and Nicobar islands; Western Region covering Maharashtra, Gujarat, MP and Goa and Southern region covering Andhra Pradesh, Kamataka, Tamil Nadu, Kerala and the Union Territory of Pondichery.


It is natural that the distribution is lop-sided since all the regions are not conducive to the rich infrastructural facilities and the profitable marketing opportunities.

The demand for accommodation is not uniform either due to non-accessibility or due to the non-availability of basic transport facilities. Some of the regions are better placed whereas some of the regions face a crisis like situation. In addition to the geographic consideration, we also find psychographic considerations important to segment the market. This is on the basis of psychographic variables which refer to life cycle, buying motives and knowledge of prospects regarding the services.

The psychographic variables vary from segment to segment. The psychological considerations are found instrumental because the hotel professionals come to know about the behavioural profile of different users living in different segments.

With a view to maintaining standards and enforcing control, the Department of Tourism Ministry of Tourism and Civil Aviation. Government of India has developed a system of categorising the available accommodation as per certain criteria. Accordingly, the hotels are either approved or un-approved. The approved hotels are found of international standard and normally the foreign tourists prefer to stay in that category of hotels.

This is due to the fact that the approved hotels have the stamp of official recognition. Approval in itself simplifies the task of promotion. The hotel professionals bear the responsibility of identifying the emerging segments.

Of late, we find a new trend even in the Indian condition because women have been found staying in hotels or eating in hotel restaurants. There are women executives and women going on holidays in all age groups, albeit without accompanying men. A number of married women have been found taking an extra holiday on their own. Middle-aged, divorce or single women have also been found staying in hotels. It is against this background that we find women segment emerging as an important segment for the hotel business.

The single-parent market is also to emerge as a new segment for the hotel business. In this category, we find unmarried mothers with very little money. The separated and divorce men and women are also found in this category. This new segment is found profitable to the hotel industry since good number of single parents have been found spending more than they can afford. The propensity to spend of this segment is found at its peak.

With the passage of time, we find a change in the lifestyles. We can't deny that increasing domination of corporate sector in the national economy and developing new corporate culture in the Indian society has change in the lifestyles ofprospects in general.

A good number of persons now appreciate physical fitness. It is essential that the hotel professionals know about this segment and provide the essential facilities in the hotels like gym, sauna, and the swimming pools including a circuit of exercise machines. The availability of personal care services close to the hotels or in the hotel complex itself would attract customers.

The emergence of Instant Market also draws the attention of hotel professionals. Today we find everyone moving fast and no one likes to wait for long time.

This has made ways for the development of the concept of fast-food restaurants and quick access to service facilities in hotels. Increasing us of credit cards has actually changed the traditional concept of making payments. It is against this background that we find quick disposal of customers drawing the attention of hotel professionals. Buying at a short notice is now found increasing.


This makes it essential that hotels have now in-built systems to take full advantages of this new development. Instant services are thus need of the hour and the hotels and hotel companies are required to perceive it in a right fashion and to innovate their services accordingly.

In view of the above, it is right to say that hotel professionals need to have an indepth study of market segmentation so that the needs and requirements vis-a-vis the level of expectations of different segments are studied and the marketing resources are developed accordingly.


This would help senior executives and the policy makers in innovating new services or packages which are yet to be common in the hotel business. Hotels should have something better to serve. The guests should feel that they are getting additional, special comforts in the hotels.


The availability of modern amenities and facilities, the construction of hotel apartments and cottages, the development of tennis courts and Gym centres, are some of the new developments found very much instrumental in attracting the customers- The hotels and hotel companies need to be aware of the emerging newtrends in the society and are supposed to ensure that the guests gel something more in hotels than those in their private homes.



We can't deny the fact that even today we find a number of hotels without modern personal care amenities and facilities. If we find some of the hotels thriving, this is due mainly to the fact that hotels are old, unusual, nostalgic or historic.


This makes it clear that if the hotels are with unique attractive features, the customers would be attracted. The old palaces and havelis are of late used as hotels and albeit the high spending tourists prefer to stay there.

Well, many many thanks for your help and providing the information on Segmentation of Hotels. BTW, i am also going to upload a document where you can find some useful information and can also included in your report..
 

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