A market segment is a category of hotel demand grouped by why and how guests book, such as transient leisure, corporate, group or wholesale. Segmentation underpins pricing, forecasting and marketing decisions.
Each segment behaves differently. Booking windows, price sensitivity, length of stay, seasonality and cancellation behavior all vary, so forecasting and pricing by segment is far more accurate than treating demand as one homogeneous mass.
Segmentation only works if reservations are coded consistently at the source. When front desk and reservations teams assign segments casually, reports become fiction. A short, well defined segment list applied with discipline beats an elaborate one applied randomly.
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