The Best Way To Identify And Segment Luxury Guests In Order To Target Your Potential Audience

Do you want excellent room occupancy for your high-end hotel? Do you want to earn outstanding profits year-on-year? 

The answer relies on adopting a laser-focused approach to selling high-end hotel rooms to a specific audience rather than to sell to everyone. 

A good understanding of your potential guests is vital to creating an adaptive communication strategy. 

Unlike most other industries, high-end hotels are defined by 5 general segmentation types. 

The combination of these details is essential to create a great outline of your ideal target market. 

Different segments have different tastes and preferences and most significantly different price points. 

Every one of the following areas must work together as one cohesive guest experience for your target audience.

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1. Location 

Understanding where your bookings are coming from is very important for your business. You need to answer these questions:
  • Where are your hotel guests from? 
  • How far do they travel to reach your destination and hotel? 
  • Are they local, regional, national, or international? 
  • Which country are they from? 
  • Which languages do they speak / understand? 

2. The compelling reason 

Why do your guests choose your hotel for their stay? 
You need to identify why your property is chosen above your high-end competitors. 

The answer to this question gives you the features and benefits which attract people to your hotel. 

It may be down to loyalty or your outstanding service (in which case – keep it up!). Other guests might come for leisure or business:

If they are coming for leisure, what kind of experiences are they interested in?
  • Activity sports 
  • Health & wellness
  • Personal relaxation 
  • Relaxation time with their friends/family 

If they are coming for business, what facilities do they need?
  • Access to nearby suppliers
  • Conference facilities
  • High-end restaurant
  • Great transport links

Particularly with guests are coming for leisure, luxury travelers are looking as much for an experience as great service – the latter should be a given. 

3. Age demographic

Consider your potential guests. Are they:
  • Active young adults 
  • Families 
  • Young couples with or without children 
  • Active seniors 
  • Retired

Are you trying to cater to all or some of those segments? Might you have more success having a more focused offering for only one or two audiences? 

Whatever you decide it still comes down to knowing your audience really well, targeting them with messaging which resonates and delivering what they want when they stay.

4. Purchasing power 

You should know the budget particular guests have to spend. Are they just making a reservation or do they want to spend money after their arrival? 

For example on special services, activities such as water sports or horse riding, private dining experiences. What is their purchasing power?

Are your potential bookers:
  • High-end guests? 
  • Super-luxury guests?
  • Independent and affluent guests?

Do they want the earth or are they more a barefoot luxury type of traveler?
Always luxury guests.

Extravagance is an everyday essential not just once in a while splurge. They don't think about what things cost. 

You can expect them to arrive by private jet, dine in the most sought-after restaurants, and stay in lavish accommodation.

Independent and affluent guests 
These groups have no family ties and school schedules to tether them to home. They may travel with a circle of friends or solo. 

Independent and affluent guests value experiences and seek out like-minded travelers. 

5. Solo or group guests 

Which kind of groups are your guests?
  • Small groups: friends / families 
  • Large groups: clubs / associations 
  • In couples or small groups: seminars / team building 

When you are assessing each segment for your high-end hotel, you need to ask yourself:
  • Is there a specific time or period that they prefer to book?
  • How long do they usually stay? 
  • Which days of the week do they usually stay? 
  • What time of the year do they usually stay? 
  • What are their exclusive needs and expectations? 
  • Do you have all the corresponding amenities in your hotel to satisfy them? 

Your target market segmentation information is valuable to the marketing department as well. 

Times and guest needs are changing which means guest behavior is changing too. You need to review the changes in your industry at least once a year. 

Consider the fact that maybe you need to reshape your business to an absolutely new guest segment, or maybe just refine to the needs of your current market. 

Knowing guest behavior helps you target it by presenting offers matched with their needs and budgets. 

This will increase your hotel revenue and also make your marketing more cost-effective.