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Hotels are a complex business, with many different types of guests and market segments. Segmentation, targeting, and positioning (STP) is a powerful tool for hotels to identify their target market, develop effective marketing strategies, and position themselves for success.
Segmentation
Segmentation involves dividing the market into distinct groups of consumers with similar needs and wants. Hotels can use segmentation to identify the different types of guests they serve, such as business travelers, leisure travelers, families, or groups.
Some common ways hotels segment their market include:
- Demographic: Age, gender, income, education, and occupation
- Psychographic: Lifestyle, values, attitudes, and interests
- Geographic: Location, climate, and culture
- Behavioral: Purchase behavior, usage rate, loyalty, and benefits sought
Targeting
Targeting involves selecting one or more segments to serve with a unique marketing mix. Once a hotel has identified its market segments, it can target the segments that are most attractive and profitable.
To effectively target a segment, a hotel should consider the following:
- Segment size and growth potential
- Segment attractiveness and profitability
- Hotel’s resources and capabilities
- Competitive intensity and barriers to entry
- Compatibility with the hotel’s brand image and mission
Positioning
Positioning involves creating a unique brand image and value proposition for the hotel that resonates with the target market. The goal of positioning is to differentiate the hotel from the competition and create a distinctive and compelling message.
To effectively position a hotel, a hotel should consider the following:
- Understanding the target market’s needs and wants
- Evaluating the competition’s positioning and points of differentiation
- Identifying the hotel’s unique strengths and weaknesses
- Creating a clear and compelling brand image and value proposition
- Communicating the brand message consistently across all marketing channels
Conclusion
STP is a critical aspect of marketing strategy for hotels. By segmenting the market, targeting attractive segments, and positioning the hotel uniquely and compellingly, hotels can reach and engage their target market and position themselves for success. Understanding the different types of market segmentation, evaluating the target market’s needs and wants, identifying the competition’s positioning, and creating a clear and compelling brand image and value proposition are all essential for developing an effective STP strategy for hotels.