Segmenting hotel clients by pricing variables and value for money

Abstract

The main objectives of this study are to answer the following important research questions: (a) Are pricing and value-for-money variables good segmentation bases for clustering hotel clients? (b) What type of tourists can be identified through pricing and value-for-money bases? The main conclusion of this paper is that marketers who apply yield management in their firms should take into account price perceptions of clients and that pricing decisions should be made by properly communicating changes in prices and the reasons behind them. Furthermore, two segments of hotel clients are revealed and analysed in the study: ‘price-elastic’ and ‘price-rigid’ segments.

Keywords:

• segmentation
• hospitality
• pricing
• heterogeneity