Hotel Revenue Management - Segmentation

Revenue management is a vast subject, we will cover all the aspects of revenue management in post by post.

Today i will share Market Segments

What is Market Segment : it is useful to target and market to the different customer with different requirement at price point to match their budget, each segment will have a different budget and needs.

Segmentation is required to maintain the MIS for the hotel, it is important to understand the nature of the business.

On PMS (Property Management System) set up a segment report, each individual reservation need to be tagged with right market segment.

List of Segments as as under:-

1. Rack Rate / Best Available Rate - No discount booking

2. Transient - Discounted against rack rate

3. Long Stay - any special rate extend to a booking more then 14 *nights length of stay

4. Corporate - Contracted

5. Govt, Defence, High Commission

6. Leisure Package

7. Leisure contracted

8. Whole sale - 3rd parties like expedia, travelocity etc on allotment basis (B2B)

9. MICE - Meetings, Incentive, Conference & Exhibition

10. Airline - Crew, STPC, Extended etc

11. Complimentary & Houseuse

Please note that by and large above mentioned terms are used in various hotels , one need to set standards and specs. before configuring segmentation on PMS

Should you need further assistance or clarification on the above please feel free to contact @ shivram.kothari@gmail.com