Review your historical data for knowledge about your customers
- Are you clear which are the most profitable segments for you?
- Use objective metrics on the level of revenue generated per segment: ADR, RevPAR, breakfast rate, Total RevPAR, etc …
- And metrics that inform you about the costs of each segment: average lenght of stay, sales by channel, average commission, …
- As well as other indicators that can help you decide on certain marketing actions for each segment: lead time, conversion rate in each channel, cancellation ratio, …
Identify emerging segments
Pay attention to the domestic market
- The Staycation concept became popular after the 2008 crisis and it is expected to return stronger now: some families have seen their purchasing power decrease in the current circumstances, and they may choose a proximity stay, before giving up on their vacations entirely.
- Although we are already getting used to working from home, now that many countries are easing up on the lockdown, while business offices will not open yet, some workers may be looking for a change of scenery to work a few hours. Some hotel groups already announce day use offers for this segment.
Don’t forget the corporate segment
First of all, we want to remind you that you should not lower the rate of current corporate accounts, since if you do, that reduction will consolidate quickly, and it will be difficult to recover the price level before the crisis. In contrast, put the emphasis on the values offered by your brand and your service, especially the new safety and health protocols that you have implemented, as well as additional services on arrival, in-room amenities, upgrades, late check out, etc.
The unpredictable MICE segment
Use rate fencing efficiently
From a Revenue Management perspective, micro segmentation will allow us to offer personalized pricing. In this sense the analysis of competitive positioning made by BEONx via HQI™ will allow us to understand what price each client is willing to pay for a particular level of integral quality, and consequently we will be able to offer each client the price he expects to see, thus increasing the probability of sale.
- Physical fences: differentiating the price based on the physical characteristics of the product, for example, different types of rooms, or different attributes.
- Non-physical fences: a price differentiation is created based on the different needs and buying behaviours of the potential customer, for example, the lead time or the length of stay. For this, you can use sales restrictions such as Arrival or Minimum Length of Stay.
We encourage you to go deeper into segmentation management by reading our
on personalization and microsegmentation.