Chapter 5: Hospitality Sales & Marketing

1. Chapter 5: Hospitality Sales & Marketing 5.4: Lodging Market segments

2. 8 Guest Segments • Individual business travelers • Corporate groups • Convention and association groups • Leisure travelers • Long-term stay/relocation groups • Airline-related guests • Government and military travelers • Regional getaway guests

3. Individual Business Travelers Lodging Needs • Individual business travelers usually stay one or two nights and account for 60% of the hotel industry’s business. • Business travelers choose a hotel based on: • Location • Room rate • Reputation • Employer preference • On-site amenities • Business travelers use a hotel’s restaurant, lounges, and room service. They also use exercise facilities, concierge floors, and business centers.

4. Corporate Groups • Corporate groups travel purely for business purposes and their rooms are booked in blocks by their company or a travel agency. • Corporate group travelers favor hotels with intimate meeting rooms and private dining facilities.

5. Convention & Association Groups • There are often thousands of guests that stay at a hotel from a convention or association group. The guests tend to stay in large hotels where a negotiated package price covers rooms, meals, and functions. Guests often share rooms and stay three to four days. • Convention groups often choose hotels several years in advance.

6. Leisure, Long-Term Stay, Airline-related Guests • Leisure travelers travel with families on vacations, trips to visit friends, etc. They usually spend only one night at the same hotel(except at resorts) and one room may be reserved for the entire family. • Long-term stay/relocation guests are those who are moving to a new area and need to stay at a hotel until they can find permanent housing. They usually need limited cooking facilities and more living space. They may want room cleaning services once a week instead of daily.

7. Airline-related Guests, Government & Military Guests • Airlines often negotiate lower rates for their airplane crews and for passengers who are bumped from a flight or stranded due to mechanical or weather problems. • Government and military travelers are reimbursed on fixed per diem allowances no matter what they actually have to pay. These guests typically choose properties that offer very low rates.

8. Regional Getaway Guests • Regional getaway guests are those who live nearby and are interested in special weekend packages. It helps hotels that cater to business travelers fill empty rooms on weekends.

9. Guest Mix Affect on Marketing Strategy • Guest mix is the variety or mixture of guests who stay at a hotel. The guest mix depends on a hotel’s location, size, facilities, and operating philosophy. • Most hotels try to reach multiple market segments. If they can diversify their guest base, they can minimize the effects of seasonality, economic recessions, and changing market dynamics. • Hotels must be careful because not all guest segments work well together. Hotels must carefully control their mix to achieve the best environment for all of their guests.

10. Assignments • Complete the Apply Your Learning 5.4, page 145, questions 1-10 • Complete the Section 5.4 Workbook assignments: • Write Right: Promoting to a Segment, page 76 • Add it Up!: How Many Can I Sell, page 77 • Putting the Pieces Together: Linking to Markets, page 78

11. Do you remember? • Time for the Chapter 5.4 quiz. • This is an open book quiz. This must be completed prior to the Chapter Test. It may only be submitted once. Be sure you have reviewed your quiz BEFORE you click the submit button! Chapter 5.4 Quiz Link