Certified Hospitality Manager (CHM) 2025 – 400 Free Practice Questions to Pass the Exam

Market segmentation is a crucial strategy in hotel marketing that involves dividing a broad customer base into smaller, more defined groups that share similar characteristics. The primary benefit of this approach is that it permits targeted marketing to different customer groups. By understanding the specific needs, preferences, and behaviors of various segments, hotels can tailor their marketing messages and offerings to resonate more effectively with each group.

This targeted approach enables hotels to create more personalized experiences and promotions, thus increasing the likelihood of attracting and retaining customers. For example, a family-oriented hotel might market kid-friendly amenities and family packages, while a luxury hotel may focus on exclusive services for business travelers. Such specialization not only maximizes customer engagement but also enhances customer satisfaction, leading to higher occupancy rates and revenue.

In contrast, the other provided options do not align with the primary purpose of market segmentation in hospitality marketing. Market segmentation does not involve quantifying room sizes, standardizing service protocols, or limiting guest options; instead, it empowers hotels to meet diverse customer needs through customized marketing efforts.