roompricegenie logo

Revenue Management Glossary

Market Segmentation


Market segmentation is firstly the acknowledgement that not all customers are the same and, secondly, the separation of existing (or potential) clients into sub sections or segments.

How to use it

Differentiate the different clients coming in from different channels and countries, as each has different buying powers, lead times, room type preferences, etc



Related Terms

I tend to use this to market the hotel differently to different segments, and at different price points. For example, leisure American clients tend to prefer bigger rooms and are open to pay higher prices, so I would target the suites to this market, while a business client coming from Portugal will probably prefer a more budget option, hence an individual room at a negotiated rate might be ideal.

José Miranda

Jose Miranda