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December 03, 2009

The 12 Step Plan - Step 4, Define your Property and Identify your Primary Market Segment

Step 4. Define your Property and Identify your Primary Market Segment:

Defining your property type and primary market segment will help guide you to areas that you need to spend more time on during the property management system evaluation process. 

  • A resort hotel compared to a city hotel would differ considerably in their primary market segment. The city hotel has a primary market segment of corporate and a resort hotel has a primary market segment of leisure.
  • A hotel located close to a highway would likely get a lot of transient guests where a hotel in a city business centre would get a large percentage of guests that are traveling on business.
  • A resort hotel may have the need to print vouchers for activities or perhaps ski passes.
  • A boutique hotel may rely heavily on guest history to identify and acknowledge return guests.
  • A convention hotel may rely heavily on the groups module within the property management system.
  • An extended stay hotel may have the need to post monthly room charges as opposed to daily room charges.    
As you can see from the above, the hotel type and the market segment have a direct correlation between the needs of the hotel and the emphasis on the functions of the property management system that the hotel staff will be using to carry out their daily duties.   

Property Types:

  • City Hotel
  • Resort Hotel
  • Boutique Hotel
  • Property Management - Extended Stay Accommodation
  • Bed and Breakfast

Market Segments:

  • Corporate.....- Business
  • Group............- Weddings/Events/Sports Teams
  • Leisure..........- Vacationers
  • Discount........- AAA/CAA Members and Other
  • Government..- Government Employees
  • Wholesalers..- Business from Tour Companies

Service Offerings:

  • Full Service Hotel – offering a wide variety of amenities for your guests such as restaurant, room service and banquet facilities.
  • Medium Service Hotel – May have a coffee shop, meeting facilities.
  • Limited Service Hotel – No Restaurant or banquet facilities, may offer continental breakfast.
Jeff Sefton

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