Revenue management – market segment

When reviewing room performance, it’s essential to analyse the business generated by major market segments.

Each brand may have its own guidelines on market segments, but they can broadly be categorized as follows:

OTA (online travel agencies) Bookings received through online portals like MakeMyTrip, Booking.com, Agoda, etc. Hotels may also include business generated through their brand or hotel website in this category.

Corporate: Bookings from corporate tie-ups, including Local Negotiated Rates (LNR) and Requests for Proposal (RFP).

Wholesalers/travel agents: Business generated from travel agents and wholesalers.

Walk-ins/direct bookings: Guests who either come directly to the reception or call the reservation team are tagged under this segment.

MICE (meetings, incentives, conferences, and exhibitions): All the group bookings can be tagged under this segment. Properties with lot of wedding business can have a separate segment of wedding & social functions.

Each market segment requires a detailed action plan tailored to the hotel type and city.

Another important point to remember is ensuring these market segments are accurately tagged in the system at the time of each booking. Incorrect tagging can lead to misleading information about the type of business.