Behavioral Segmentation of Hotel Customers: An Empirical Study
2019
The paper focuses on the use of cluster analysis for hotel
customers’ segmentation and its possible application within the
hotel marketing mix. Study works with Two-Step Cluster analysis
that allows clustering of quantitative and nominal data. Main
results show that using booking window (the period between
reservation creation and date of arrival), distribution
channel, length of stay (in days) and net room rate to cluster
hotel customers into homogenous segments can be beneficial
during the process of customer segmentation. Six basic customer
segments were identified and lately described mainly by their
behaviour in time, and money spends for a single reservation.
The paper directly describes the whole methodology of Two-Step
Clustering and possible outputs that can be used in revenue
management research.
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