Segmentation, What are the Problems with Traditional Indicators

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Transcript

Hello, another paper another metrics that we normally use in traditionally is fit and group segments we normally separate fit means between individual fully independent travelers who are traveling not in a group less than 10 rooms in one case, they are usually coming for leisure they me coming from corporate games for meetings for other purposes, while the group means that it is a rebooking by by the more than 10 rooms and fit and good segmentation is normally done the segmentation by the purpose of the booking method and the paying capabilities of the guests. So, why we normally traditionally segment it out because we want to understand the guest profile of the hotel, how much are they paying capacities, how much they are able to pay, how well we are able to maximize the groups of the segments which are paying a higher price how We're looking at only the room revenue generated or the rates generated by each segment is not a good enough nowadays, we have to look for the full folio how much they are actually spending and also the cost to acquire them.

Traditionally we were looking at only the revenue generated by segmentation nowadays the more modern matrix is the profit generated by each segment. So, we will be looking at it in the future as well the other market segment that leads So, the problems with the traditional matrices are that they are limited and limited visibility of the effective utilization and we will consider the relationship of the strategy and outcome. So, our strategy is to maximize the profit of the company rather than just maximizing the revenue or a certain matrices which are for example like TripAdvisor, it may not be the right strategy they are not aligned with the exact goal of the company and they may not portray the The real situation of hotels performance

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