Chapter 5: Hospitality Sales &
Marketing
5.4: LODGING MARKET
SEGMENTS
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
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:
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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.
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.
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.
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.
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.
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.
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.
Assignments
• Complete the Apply Your Learning 5.4,
page 145, questions 1-10
• Complete the Section 5.4 Workbook
assignments:
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•
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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
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