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Webinar - Rethinking Hotel Segmentation
This document summarizes a presentation about rethinking hotel segmentation strategies. It discusses how segmentation has evolved over time as distribution channels have changed. Key considerations for segmentation include understanding customer types and behaviors, distribution channels, acquisition costs, and prices. The presentation then reviews a case study where Duetto helped a hotel optimize its segmentation strategy using a cycle of analysis, strategy, evaluation, and execution. Key takeaways are evaluating segmentation periodically based on questions like understanding customer mix and behaviors, and whether current pricing is maximizing occupancy.
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Introduction to the educational series focused on evolving segmentation strategies in the hospitality industry.
Overview of Duetto, its innovative approach, commitment to customer success, and industry-leading technology.
Introduction to Nathaniel Green, a senior solutions engineer at Duetto, highlighting his tenure since 2012.
Outlines the key topics to be discussed, including Segmentation and Best Practices from Duetto.
Defines revenue management, emphasizing analytics for optimizing pricing and product availability.
An introductory overview of segmentation in the revenue management context.
Introduction of Hotel ABC and Hotel 123 for segmentation analysis.
Details Hotel ABC's simplistic segmentation into Retail, OTA, Group, Wholesale, and Corporate.
Outlines Hotel 123's more complex segmentation types, enhancing its market strategy.
Introduces customer personas, Jim looking for the best deal, and Joe wanting specific property options.
Discusses Hotel ABC's flat pricing strategies across channels at $215.
Details Hotel 123's varied pricing strategies through detailed segmentation across channels.
Combines customer personas Jim and Joe in relation to Hotel ABC and Hotel 123.
Tracks the evolution of segmentation from the 1970s to present, noting complexities and online influences.
Describes how travelers traditionally booked directly with brands.
Highlights how booking brands now dominate entry points for consumers in the hotel industry.
Statistical data showing commissions rising at double the rate of revenue growth since 2009.
Comparison of customer acquisition costs as a percentage of revenue.
Clarifies segmentation as a process to divide markets into actionable and profitable segments.
Discusses various types of segmentation including Market and Yielding Segmentation.
Identifies different customer segments such as Transient, Corporate, OTA, and Group.
Introduces four key considerations necessary for effective segmentation.
Explores the key considerations in segmentation: Segmentation, Distribution, Cost of Acquisition, Price, and Customer Behavior.
Highlights best practices for re-segmentation strategies employed by Duetto.
Lists key questions to assess the current customer mix, booking behavior, and pricing strategies.
Describes the process for optimizing segmentation in business performance.
Summarizes key takeaways for moving forward with segmentation and includes evaluation questions.
Provides a detailed evaluation process for understanding customer types and behaviors affecting segmentation.
Summarizes key takeaways across different categories in segmentation to guide revenue management strategies.
Concludes the presentation with an invitation for questions related to the content discussed.
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Webinar - Rethinking Hotel Segmentation
- 1. Rethinking Segmentation: A ConstantEvolution WEDNESDAY, April 29th - 9:00AM (PDT) Duetto Educational Series
- 2. About Duetto Rapidinnovation, new product features released weekly Disruptive Thought Leadership Committed to the success of our customers Customer Service Focused Best-in-Class Team Innovative Philosophies Marquee Investors Industry-Leading Founders World-Class Technology Development Best-in-Class R&D
- 3. About: Nathaniel “Nat”Estis Green Senior Global Solutions Engineer Duetto family member since Dec. 2012
- 4. Agenda ▍ Segmentation 101 ▍Four Key Considerations ▍ Duetto Best-Practices Case Study ▍ Key Takeaways ▍ Questions? 4
- 5. Revenue Management Introduction “Theapplication of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth. The primary aim of Revenue Management is selling the right product to the right customer at the right time for the right price and with the right pack. The essence of this discipline is in understanding customers' perception of product value and accurately aligning product prices, placement and availability with each customer segment.” Cross, R. (1997) Revenue Management: Hard-Core Tactics for Market Domination. New York, NY: Broadway Books. Inventory / Capacity Demand Price $
- 6. Segmentation 101 Introduction toSegmentation.
- 7. 7 These are ouravailable hotels Hotel ABC & Hotel 123
- 8. 8 300 room property;has limited segmentation to Retail, OTA, Group, Wholesale, Corporate Hotel ABC
- 9. 9 300 room property;has limited more detailed segmentation to Transient, OTA Merchant, Opaque, Group, Wholesale, Corporate LRA, Corporate nLRAHotel 123
- 10. 10 Jim Joe Meet ourcustomers &
- 11. 11 Looking for bestdeal possible Willing to sacrifice selectionJim
- 12. 12 looking for agood deal but also wants to select a specific property Joe
- 13. 13 300 room property;has limited segmentation to Retail, OTA, Group, Wholesale, Corporate Charges $215 across all OTA channelsHotel ABC
- 14. 14 300 room property;has limited more detailed segmentation to Transient, OTA Merchant, Opaque, Group, Wholesale, Corporate LRA, Corporate nLRA OTA Merchant - $225 OTA Opaque - $195Hotel 123
- 15.
- 16.
- 17. Evolution of Segmentation 17 1970s1980s 1990s 2000s 2010s 2015 Separation of ownership, brand, and management Leisure & Group Product segmentation; financial engineering Leisure, Group, Contract/Corporate First online booking; enter Expedia New need for OTA segmentation Online distribution explodes complexity Complexity of segmentation continues with more channels Crowded value chain Meta search; enter tech giants & new gatekeepers
- 18. Historically Travelers BookedDirectly with Stay Brands 18 Consumer Stay Brands Courtesy
- 19. Booking Brands NowDominate Consumer Point of Entry 19 Consumer Stay Brands v Booking Brands Courtesy
- 20. Commissions Rise at2x the Rate of Revenue Growth 39%+ 2009 2010 2011 2012 % Increase Commission Increase 20 20% Total Acquisition Costs Room Revenue Sales & Marketing Expense Total Revenue Retail commissions only Source: HAMA Study 2013-2014 Courtesy
- 21. Customer Acquisition Comparative Costsas % of Revenue 21 Revenue Cost % 3-6% 4-6% 15-25%
- 22. What is Segmentation? TheRight Segmentation for YOU Segmentation: to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential. Economic Times OR
- 23. Types of Segmentation 23 MarketSegmentationYielding Segmentation Pricing Financial Reporting
- 24. What about Promotions? Types ofSegmentation 24 Market SegmentationYielding Segmentation Pricing Financial Reporting
- 25. Transient Retail • AAA• Friends & Family Corporate LRA • nLRA OTA OTA Merchant • OTA Opaque Consortia Group Corporate • City-wide • SMERF Wholesale Wholesale (Vacation or city-wide) Strategic Segmentation 25
- 26. Getting Started The fourkey considerations.
- 27. Four Key Considerations 27 Segmentation DistributionCost of Acquisition Price Customer/Market Behavior
- 28. Four Key Considerations 28 Segmentation DistributionCost of Acquisition Price Customer/Market Behavior
- 29. Four Key Considerations 29 Segmentation DistributionCost of Acquisition Price Customer/Market Behavior
- 30. Four Key Considerations 30 Segmentation DistributionCost of Acquisition Price Customer/Market Behavior
- 31. Four Key Considerations 31 Segmentation DistributionCost of Acquisition Price Customer/Market Behavior
- 32. Four Key Considerations 32 Segmentation DistributionCost of Acquisition Price Customer/Market Behavior
- 33. Money Where YourMouth Is Duetto Re-Segmentation Best Practices
- 34. Re-Segmentation Key Questions 34 12 3 Can you tell the mix of business (types of customers) you have? Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? Are your revenue or sales and marketing team’s pricing and/ or promotional strategies selling out the hotel day-of?
- 35. Circle of SegmentationOptimization 35 Analyze current performance Strategize performance goals Evaluate distribution strategy Determine expected changes and set expectations to appropriate departments Execute new segmentation Segmentation Optimization Cycle
- 36. Best Practices Key take-awaysfor moving forward.
- 37. Key Questions toEvaluate 37 Can you tell the mix (types of customers) you have?
- 38. Key Questions toEvaluate 38 Can you tell the mix (types of customers) you have? NO Refer to “Circle of Segmentation Optimization”
- 39. Key Questions toEvaluate 39 Can you tell the mix (types of customers) you have? YES NO Refer to “Circle of Segmentation Optimization” Can you tell booking behavior of each customer segment? ADR? Booking lead time?
- 40. Key Questions toEvaluate 40 Can you tell the mix (types of customers) you have? YES NO Refer to “Circle of Segmentation Optimization” Can you tell booking behavior of each customer segment? ADR? Booking lead time? NO
- 41. Key Questions toEvaluate 41 Can you tell the mix (types of customers) you have? YES NO Refer to “Circle of Segmentation Optimization” Can you tell booking behavior of each customer segment? ADR? Booking lead time? YES NO Are your revenue or sales and marketing teams pricing and/or promotional strategies selling out the hotel day-off?
- 42. Key Questions toEvaluate 42 Can you tell the mix (types of customers) you have? YES NO Refer to “Circle of Segmentation Optimization” Can you tell booking behavior of each customer segment? ADR? Booking lead time? YES NO Are your revenue or sales and marketing teams pricing and/or promotional strategies selling out the hotel day-off? NO
- 43. Key Questions toEvaluate 43 Can you tell the mix (types of customers) you have? YES NO Refer to “Circle of Segmentation Optimization” Can you tell booking behavior of each customer segment? ADR? Booking lead time? YES NO Are your revenue or sales and marketing teams pricing and/or promotional strategies selling out the hotel day-off? YES NO Evaluate re-segmentation in 6-12 months
- 44. Key Takeaways 44 Economy LuxuryResorts City-Center Airport Convention Casino
- 45. Questions? WEDNESDAY, April 29th- 9:00AM (PDT) Duetto Educational Series
Editor's Notes
- #2 Even though revenue management Is a broad topic the focus of the discussion will be segmentation.
- #4 Formerly on initial CS team, managed APAC & EMEA sales at Duetto IHG RM internship got me into revenue management
- #6 Perishable inventory optimization Influences operations (housekeeping), S&M, finance, etc. rental cars, airlines, hotels, stadiums (tickets)
- #7 Foundation of pricing strategy; if you have 2 customers that are different pricing characteristics in the same segment you’re missing revenue: over pricing one or under pricing one.
- #12 doesn’t have a preference other than star-quality and location; Has a price of $200-250 in mind
- #13 Made decision between final two properties of 123 or ABC Has a price range of 175-200
- #15 OTA Merchant – Expedia, Booking.com, Travelocity OTA Opaque – Hotwire, Priceline, etc.
- #16 Jim doesn’t book because it is slightly out of his price range; Joe pays willingly and had some wiggle room to possibly spend more money – cheaper rate could enable ancillary spend including upselling if completed appropriately.
- #17 Jim books because the rate is within his price range (optimally at the higher side). Joe also purchases. While there are many other things to take into consideration which I will get into later in the presentation this is a straight forward example how thought-out segmentation can lead to more bookings for your property.
- #18 Consumers were not always like Jim and Joe with so many options…. In the 50s: Group & Leisure; then corporate; as new channels come up new needs for segmentation: booking brands have controlled types of customers as they are marketing engines
- #19 Previously travelers booked directly with hotels - the stay brands. Hotels competed with each other for the consumer and owned the relationship There has been a bifurcation of travel brands and now there is a new class of brands in travel… Think UBER/ LYFT today
- #20 New class = booking brands The booking brands have become the dominant point of entry for the consumers Consumers pass through these brands before they decide where to stay And these booking brands are companies with massive power and high market caps – like Google, Expedia, Facebook. Hotels are paying to get traffic from the booking brands & while still paying to compete with the other stay brands on guest experience Competing with a new class of brands with larger budgets is why costs have risen so much In fact we looked at how much the costs have gone up…
- #23 Explain Types of (Yielding v Market) Segmentation Fight OTA or increasing acquisition costs: drive more direct Loyalty segmentation: total lifetime value for hotel customers --- this is a gamechanger: Average daily spend rather than average daily rate Takeaways with Segmentation: Segmentation for pricing and segmentation for marketing/promotional purposes; depends on what you’re using it for: pricing segmentation to segment business together into different rate buckets. Need to think about categories of customers depending on what actions you want to take – training call center you wont think about qualified discount you will think about type of customer Foundation of pricing strategy; if you have 2 customers that are different pricing characteristics in the same segment you’re missing revenue: over pricing one or under pricing one. Ex. Seg: Business- not always contracted rate: Sunday-thurs traveller v weekend traveller Leisure Group
- #24 Yielding & Market Segment: Yielding: pricing; how are you pricing different channels and managing restrictions – will impact bottom line; has direct impact on performance.. More granular detail to enable better more flexible pricing – can also be beneficial for promotional purposes Market Segment: budgeting and reporting. OTA and Opaque are priced different but reporting wise, finance guys prefer, 3rd party distribution lumped together – will impact reporting efficiency; marginal impact to bottom line with more efficient reporting (helps finance & accounting teams); Financial Segmentation is market segmentation – P&L (for management or ownership group); simple breakdown of looking at your business Hotel Del (Customer) – confused by why needed to make more detailed segmentation “How would you break things down into more granularity”? -- market segment for OTA and divide it up to merchant and opaque (able to look at bookings and ADR in more detail). Take Transient segment and breaking it down into retail, AAA, friends and family. Expedia – starting to charge customers directly or have customers pay at hotel which offer different margins. Things to talk to (or ask questions about), but leave open for follow up: Casino/Loyalty Segmentation Multiple Segmentation for different purposes
- #25 Depends: do you have huge gaps of occ (low season hotels) or fill shoulder days or key periods of needs (smaller groups so going after more granular detail with yielding segmentation) Make sure your promotions are best on your website (loyalty) or at least equal to the market; many people offer better promotions on hotel tonight or other platforms which are not ideal - Talk to Marco at Starwood W in SF Yielding & Market Segment: Yielding: pricing; how are you pricing different channels and managing restrictions – will impact bottom line; has direct impact on performance.. More granular detail to enable better more flexible pricing – can also be beneficial for promotional purposes Hotel Del (Customer) – confused by why needed to make more detailed segmentation “How would you break things down into more granularity”? -- market segment for OTA and divide it up to merchant and opaque (able to look at bookings and ADR in more detail). Take Transient segment and breaking it down into retail, AAA, friends and family. Expedia – starting to charge customers directly or have customers pay at hotel which offer different margins. Market Segment: budgeting and reporting. OTA and Opaque are priced different but reporting wise, finance guys prefer, 3rd party distribution lumped together – will impact reporting efficiency; marginal impact to bottom line with more efficient reporting (helps finance & accounting teams); Financial Segmentation is market segmentation – P&L (for management or ownership group); simple breakdown of looking at your business Things to talk to (or ask questions about), but leave open for follow up: Casino/Loyalty Segmentation Multiple Segmentation for different purposes
- #26 11th edition segmentation Transient – Retail, AAA, friends and family Corporate – nLRA, LRA OTA – Opaque, Consortia Group: Corporate, city-wide, SMERF (social military educational religious fraternal –war memorial vets, Eagles, frats-), wholesale-group (similar as “wholesale” segment) specifically coming in for X (coming from overseas) Wholesale (Vacation or City-wide): wholesale is going to come from pre-Negociated wholesale agreement
- #27 It is necessary to “tick” all the boxes in the following in appropriate order: in order to reach optimal segmentation for yourself. Is it group or individual? Leisure or business – pay for yourself or you don’t? Are there relevant mix of business within a certain segment? We had this big European hotel who’s largest segment was fixed rates: formerly only had one segment. We had to create sub segments – corporate high, corporate medium, corporate low, corporate distressed – create sub segments to create true ability to analyze data. With new strategic distribution strategy they were able to renegotiate corporate contracts to open up some yieldable business which in turn resulted in shrinking corporate sub segments from 4 to 2. It is important to keep in mind segmentation is constantly evolving. Managing all aspects of the business will mean that your property will likely have shifts in customer behaviors as you move towards full profit optimization; and even when fully optimized as new channels or means of distribution comes online it changes the strategy for the property. Don’t hesitate to re-evaluate segmentation shifts: just be sure to have revenue and other systems that can store historical data and historical segmentation to appropriately do analysis of how the changes impacted your business.
- #28 First look at pricing behavior (extended stay v. 3rd party internet v Opaque v Advanced Purchase v Packages); 2nd look at channels and distribution. Segment by price consumer is willing to pay or segment by cost per channel.
- #29 Distribution -- how are we getting people to hotels; what strategies can we do to approach these mix of channels? Need to evaluate you needs as a property: what distribution channels fills your property best? Remember what your needs are today does not mean it’s where you will stay forever: you need to develop a strategy of where to be today and how to get to where you want to go: If you are an independent in a tertiary market you may be more reliant on OTAs, corporate, and wholesalers to attract business; do you want to shift to having more direct bookings? Ensure a good stay and allow for personalized rates on your booking engine to entice guests to book directly rather than through other high-cost channels – though those channels are still beneficial at getting a customer through the door who may have never before Many resort companies, especially those in major resort markets like S.E Asia, Mexico, etc., are reliant on heavy wholesale business; this may be the safe move and sells out the hotel well in advance, but do you want to shift to be more of a direct tourist hotel? That may mean following the OTA move into also creating fenced rates around your booking engine to entice specialized rates only directly. If you are a airport hotel you will be a big corporate account property; do you want to shift into having more meetings and groups which you can optimize and have more flexibility with pricing than fixed rates?
- #30 Acquisition – Acquisition is result of distribution when looking at all channels; good acquisition is minimizing costs. Do you know your costs of acquisition and what are your costs of acquisition? Have they been increasing while profits haven’t been? Kalibri Labs is a key player in evaluating this; we have a partnership to allow us to ingest their data to optimize distribution analysis.
- #31 Price – segmenting customers on buying behaviors can be useful because you can offer them different things: which means you segment by price. 1) Key Questions: Is this person traveling for business or pleasure? 2) Are they price sensitive? 3) What products are they buying? 4) Do they have ancillary spend? 5) Are they routine guests?
- #32 Behavior – a product of price. In response to price key question: Majority of your city-wide business is coming through a conference so because theyre coming due to a conference on a business account you can anticipate a price based off of this behavior.
- #33 Behavior – a product of price. **Chicken before the egg: does price impact the buying behavior of your customers (and general market) or do the buying behaviors of your customers (and general market) impact price? Does behavior control price or does price control behavior? There’s a situation where if you don’t align your price with market and consumer behavior your value perception will be off what the market perceives it as and you will have either an over or under priced hotel for the perceived value. Maintaining brand image is important when considering behavior and price. Story: Encore – slash opaque and package (which are easier to hide from public perception) to fill the property and maintain the image of highly esteemed property while keeping direct and public rates up; utilize certain segmentation to maintain brand image while also filling the property to not impact future price. Mix of price optimization around various customer behaviors to maintain image and also optimize profit. Response: Market behavior (or market placement/ perception v comp set) can impact consumer behavior which then impacts the prices you can charge. Mix of both: depends on availability/demand in the marketing. You cant entirely predict market behaviors so you need to anticipate some when setting prices, but you cant just set prices without anticipating market behavior or you could out or under price yourself. Depends: some customers only buy on a good deal; other customers don’t care and will buy regardless of price. Analyzing how customers came in through channels is a good way at determining this: if a customer buys on hotel tonight same day it’s a different behavior (and should be approached different) relative to buying 6 months in advance direct or calling in. End Goals Key for sales and marketing and RM to be in sync: S&M can target consumers with different buying behaviors and RM can target consumers via different price. Finding the mix is appropriate.
- #35 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #36 Segmentation is constantly evolving not something set in stone People need to look at segmentation again when they don’t know what is in a segment anymore? Analyze current segmentation: is the mix profitable? Has your performance been increasing with the aligned marketing strategies? Is your owner happy? Ensure the incentive structure is aligned at the property to make sure people are rewarded as the property does better; you don’t want conflicting incentive structures Strategize performance goals: where do you want to be? What are your goals for profitability? Is the owner trying to get the hotel into a certain financial situation before trying to sell? Evaluate Distribution Strategy: what mix of business is appropriate to reach these goals? Do you have the pieces in place and the appropriate people staffed in the hotel to help you get to that performance goal? Are people at the hotel resistant to changes in current operations or mix of business shifts? Determine expected changes: Ops, S&M and RM need to be aligned is key for successfully re-segmenting in the most profitable way possible: implementing a new distribution strategy is not just about price, which RM controls, but includes the other three factors: distribution, cost of acquisition, and consumer behavior which are all impacted by operational and S&M departments at a hotel. Execute new segmentation: roll out your decided new segmentation and strategy around this segmentation. Spend time evaluating the variances as you may need to make minor tweaks to ensure you have sufficient m
- #37 How to determine segmentation: look at historical reservations by price, source/channel, market code. Best way to determine segmentation is to see how customers purchased in past. Look at total production year-round: El Cortez runs 90% so EDC customers coming wont have much impact. Look at overall revenue impact from type of customer. Ask Nevin if there is a threshold of revenue directed by a certain customer that justifies creating their own segment.
- #38 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #39 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #40 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #41 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #42 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #43 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #44 1) Can you tell mix of business (types of customers) you have? No: Refer to circle of segmentation optimization 2) Yes – Can you tell booking behavior of each segment of customer? ADR? Booking lead-time? No: Refer to circle of segmentation optimization 3) Yes: Are your revenue or sales and marketing team’s pricing or promotions decisions selling out the hotels too early or not enough? Yes: Refer to circle of segmentation optimization No: Evaluate Re-segmentation in 6 months
- #45 luxury hotel (loyalty segmentation, have strongest case for guest loyalty –emotional connection-, can be more exclusive to segmentation). Image based segmentation can be a factor. Experience based loyalty v Price based loyalty: how will revenue managers and S&M incentivize loyalty for high-end customers? economy hotel (transient business, not many segmentation, straight forward inventory management) resort hotel (heavily weighted on wholesale and package; better insight into customers then to create strategy about distribution) city center (most complex segmentation; all channels –OTA, O and all types of people coming – business, conference, vacation, families, etc., most opportunity since there are most moving parts. 3-4 star is a HUGE sea of people and customer types. All downtown city center hotels will have impact by city-wide events Airport (transient walk-in, corporate –mostly flight crews; global AMEX agreements w Brands-, park & fly -park and stay one night-, and meetings) Convention (ASK NEVIN) – similar to city center; more granualr Group segmentation (specifically to convention),
- #46 Even though revenue management Is a broad topic the focus of the discussion will be price optimization.