Targeting the correct guest is not just important it’s essential to success!
The unfortunate truth about marketing is that we cannot target everyone, as much as we all would like to it’s just impossible to cater for everyone’s needs.
The disturbing truth is that most hotel owners and managers don’t actually know who their target market is, they just apply a blanket marketing strategy without actually knowing who it’s for. For example: Family travellers and business travellers are two totally different target markets or segments, it would be a horrible mistake to market to both demographics in the same advertisement, – I can’t even imagine how it could be successful and an effective use of marketing dollars.
So, what is the key to driving more revenue to your hotel? Defining your target market, after all your property won’t appeal to everyone’s needs.
A specific group of customers at which a company aims its products and services.
1. Look at your current customer base
A good way to do this is to go through past bookings and work out who has previously visited your property e.g. families, couples, singles etc. In fact a really good way to get an accurate understanding of who your customers are and why they are here is to get them to fill out a survey on arrival, this will give you a great idea of their persona.
2. Check your competition
Having a good understanding of your competition is always vital in business no matter what industry. Three important things to know about your competition:
– Features and amenities of their property
– Target market
– What demographic their current guests are
Understanding these three key elements of your target market will help eliminate some competition therefore leaving you to target a niche rather then competing.
3. Analyse the features and amenities of your property
Most property owners and managers should already have a good understanding of their features and amenities. However, the next step is to write a list of the features and amenities along with the benefits they provide and who would benefit from them. I.e. Water slide in the pool who would benefit: Families and Children.
4. Choose demographics and Psychographics to target
Thinking about prospective guests needs for services and amities when staying at your property, also their willingness to purchase
– Annual Income
– Family & Marital status
– Interests/hobbies etc.
5. Evaluate your decision
The evaluation process is a very important step after you have defined your target market – this is where you ensure:
– There are enough people in your segment
– Prospects in this segment can afford this type of property
– Understand what drives the segment or niche to make this purchasing decision
– They can be reached and marketed to easily
Remember you can have more then one target market or niche, you just need to consider different marketing messages for each – you shouldn’t be able to effectively reach both segments with the same message, that defeats the point of segmenting.
Defining your target market is never an easy task, a lot of time and research should go into this process but once you have this 100% accurate your marketing dollars will be targeted and tractable.
Finally, don’t break down your target market too far!
For information on how to run your accommodation business on full autopilot contact us today, let the experts worry about the technical stuff so you can focus on getting to know your guests!