The Hotel, Restaurant, and Leisure industry often segment their targets either geographically or demographically.
During the past decades, the hospitality industry has enormously grew and expanded mostly thanks to globalization. The new integrated world has been offering extreme revenue growth in the hospitality business. Millions of people travel away from home daily meaning that millions of people are in need of temporary places to stay, eat, and enjoy every single day. Therefore, this is why the geographic segmentation is really important in this industry. For example, hotel owners would most likely invest in a hotel in New York City rather than Up-state New York. New York city has a greater population and a much higher rate in tourism that promises much greater revenue.
Hotel, Restaurant, and Leisure companies must also identify their targets based on their incomes. There exist 2-5 star hotels, as well as quick-service restaurants, casual dining establishments, and fine dining restaurants. When opening a restaurant or a hotel, one must take into consideration whether his company will be attracting consumers with high income looking for complete luxury or averaged income consumers looking for affordable services.
Similarly to the other industries, segmentation is a necessary process in the hotel, restaurant, and leisure industry. A company failing to approach this step will fail to identify their targets, which will result into unsatisfying revenues.
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