Hotel Guest segmentation: 5 basic tips to boost conversions

Understanding your guests is key to standing out as a hotel. But with diverse demographics and travel styles, a one-size-fits-all approach simply won't cut it. This is where guest segmentation comes in, a powerful strategy that allows you to personalize your offerings and communication to resonate with each guest on a deeper level.

This article explores the power of guest segmentation for hoteliers, from understanding its core benefits to implementing a successful segmentation strategy within your hospitality CRM.

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How does segmentation work in hotel marketing?

Imagine treating every guest the same, regardless of their travel style. Today's travelers crave personalization. For this, guest segmentation is the most accurate answer. 

It's a powerful marketing strategy that groups guests based on shared traits, like age or purpose of their trip, for example, to deliver a more relevant experience.

This empowers you to resonate with each guest on a deeper level. The benefits? Undeniable. Studies show that businesses that adapt their offerings to customer segments generate 10% to 15% more revenue than those that don't.

Furthermore, organizations with effective market segmentation strategies enjoy a 10% higher profit than companies whose segmentation wasn't as effective over a 5-year period. 

The good news? You don't need to be overwhelmed – the average company uses just 3.5 different segmentation criteria. And you can use different tools to help you achieve this, among the most popular ones, a CRM system.

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Benefits of applying guest segmentation to your strategies

Guest segmentation goes beyond basic demographics. It's about creating distinct groups based on shared characteristics, such as travel habits, booking behavior, and preferences. By applying a correct guest segmentation, you will be able to: 

-Enhance the Customer Experience: Segment guests to tailor pre-booking to post-stay experiences with targeted communication, promotions, and recommendations.

-Optimize Pricing Strategies: Price rooms based on segment willingness to pay, maximizing revenue with competitive rates for budget travelers and capturing full value from premium-seekers.

-Target Marketing Efforts: Craft email campaigns with personalized messages that resonate with specific guest interests. 

-Create Operational Efficiency: Anticipate guest needs by segment, ensuring streamlined operations. 

How do you start on hotel guest segmentation?

1. Enrich your Guest Data: 

To truly understand what segments need to be created, you need to gather your data into one place. Where to? Your CRM or CDP. Gather rich guest data through website forms, bookings, and feedback surveys. Analyze this data to identify patterns and define your segmentation criteria.

To learn more about how to use guest data, read this article: Hospitality Data: How to use it to increase revenue for your property.

2. Start Simple: 

Begin by creating a few broad segments based on basic demographics like solo travelers, couples, or families. This allows you to practice and refine your segmentation skills.

3. Leverage Segmentation Filters:

Now you are ready to go further in your segmentation. For this, your CRM will be highly useful. Most CRMs let you segment guests based on demographics, booking history, behavior, and more, allowing you to create highly targeted guest profiles for personalized experiences. 

4. Get insights on your segmentations:

Once the segmentation is created, you need to dedicate some time to understand the differences between the segments. These findings will help you to craft content, campaigns and initiatives that adapt to your guests. If complaints are more popular in one segment than in another, there is a clear sign that something needs to be fixed. 

5. Create specific content: 

If you have the segments and you have learned from them but you don’t spend time creating different messages, everything will be in vain. Craft custom email campaigns, website content, and even in-room promotions tailored to each segment's needs. 

6. Measure and refine: 

Track the performance to identify what resonates most effectively. Monitor the impact of your segmentation strategy on key metrics like booking rates, guest satisfaction, and revenue. Analyze the results and refine your segments and messaging over time.

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3 examples of audiences

1. Business Travelers
   This segment prioritizes efficiency and convenience.  Highlight your hotel's proximity to business districts, on-site business amenities like workspaces and meeting rooms, and loyalty programs with perks for frequent business travelers. 

2. Luxury Seekers
   Target guests who love luxury. Highlight your hotel's fancy rooms, special features like spas and great restaurants, and personal attention from the staff. 

3. Families
   Attract families with children by highlighting your hotel's kid-friendly amenities like pools, game rooms, and on-site activities. Offer family packages that include bundled pricing for children's meals or complimentary access to attractions.
   
   

To find your target audiences, read this article: 9 audiences you can create for better hotel marketing campaigns

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How guest segmentation is applied through guest journey, from pre booking to post stay?

The beauty of guest segmentation lies in its automation potential. Imagine creating 10 unique guest journeys – one for each of your key segments. With the right hotel CRM platform, these journeys can run automatically. For example, if you use Bookboost’s CRM, the system triggers personalized messages, campaigns and reminders based on the guest's segment, freeing you from manual interventions.

By implementing guest segmentation throughout the entire guest journey, you can create a truly personalized experience for each guest, leading to higher satisfaction, loyalty, and ultimately, increased revenue for your hotel.

To get inspired, read this article: Guest Journey Template: Reach guests better than ever

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In conclusion

Guest segmentation empowers hoteliers to move beyond a generic approach and embrace a hyper-personalized guest experience. And it doesn’t need to be complicated. The truth is that by leveraging your CRM's segmentation capabilities, you can unlock a deeper understanding of your guests, optimize marketing strategies, and ultimately, unlock the full potential of your hotel's success. 

Start segmenting today and watch your guest satisfaction and revenue grow fast!

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