A Case Study of Hotel Market Segmentation

Now, the hotel service industry, like the consumer goods industry, is undergoing drastic changes. As a hotelier, you must always ask yourself: Should I upgrade my products or services to protect my market in the competition, or should I develop new products for new market segments? If you choose the former, you should pay attention to keep the promotion of products or services step by step to reduce costs, because existing customers are often unwilling to pay more. If you choose the latter, the new product or service must contain many things that the new target customers expect. Furthermore, it is necessary to have a different brand-this brand will not impact the original brand, and new customers can accept this new product or service and are willing to pay a higher price for it. By building an "elastic suite", Marriott Hotel has successfully transformed a model of "dissatisfied price-sensitive customers" into a model of "value-oriented customers", which is a typical case.

In the final analysis, this is actually the STP strategy in marketing, that is, market segmentation and target positioning strategy. In the final analysis, brand strategy is designed and formulated around market segments, and clear brand strategy comes from clear STP strategy. Today, when the homogenization of products and services is serious, and everyone is competing for the same market, should we consider breakthroughs and innovations from a strategic perspective? I hope the case of Marriott Hotel can give us some inspiration.