A hotel business near an airport has analysed bookings from customers in different countries. Visitors from Country A usually book short overnight stays, wh...
Question 1 Report
A hotel business near an airport has analysed bookings from customers in different countries. Visitors from Country A usually book short overnight stays, while visitors from Country B tend to book a week and ask for family rooms. The hotel has an objective to increase room occupancy outside the holiday season.
(a) Identify the segmentation variable based on customers' country. [1]
(b) Which type of room promotion is most suitable for visitors from Country B? [2]
(c) Explain one way the hotel could use market research to improve its pricing for Country A visitors. [2]
Answer Details
(a) The variable is geographic segmentation, based on nationality or country/location. [1]
(b) A seven-night family package or family-room offer is suitable for visitors from Country B. They tend to stay for a week and request family rooms, so the promotion matches their booking behaviour. [2]
(c) Market research can show what Country A visitors are willing to pay, or reveal competitors’ prices. The hotel can use this information to set a price that attracts short-stay overnight visitors while protecting revenue and helping raise occupancy. [2]
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