Globalisation has speeded up dramatically in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally. Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet. As economies become more connected, competition as well as opportunities has increased during recent years. By takin advantages of those opportunities and increase competitive advantage hotel companies should know their ever changing and international visitors. As it is unfeasible to target each customer individually, profiling has been identified as a useful and cost-efficient tool. This can be particularly described due to the fact that data are retrieved through online platforms sources which have been increasing related to globalisation. By having a closer look at hotel company’s competitive environment, this blog briefly explains customer profiling and its benefits within the competitive environment of the hotel industry.
Nowadays, there are a few ways to promote a hotel company. Everyone knows that first of all a company needs to create a marketing strategy in order to have a successful business. Before a company decides how to market, the most important step is to get to know potential customers. According to Peelen & Beltman (2013), companies use customer profiling as a marketing tool in order to understand their customers and make better business decisions. With the aid of this business strategy companies can identify customers profiles and further group similar profiles for example into demographic or geographic distinctions (Thebalance.com, 2017).
According to Tourism eSchool (2017), the whole process of profiling your customer starts with the company’s understanding who their customers actually are: Do we currently attract the people we want? What does a desirable customer look like? Especially for innovative hotels such as W or citizenM those information sources are essential in order to be updated in the competitive environment.
Once a hotel company has completed customer profiling they will have a clear picture of the type of customers staying or visiting the hotel. By creating a marketing strategy with these desirable customers in mind it will help the business to cooperate successfully and without any time or resource waste. With the aid of a better and constant marketing communication the hotel company is able to better reach new customers and remain a successful business.
The balance (2017). Consumer Profile: Defining the Ideal Customer. Retrieved at September 30,2017 from: https://www.thebalance.com/consumer-profile-defining-the-ideal-customer-2296932/
Tourism eSchool (2017). Ideal Customer Profiling: The Process of Identifying your Most Profitable Prospects. Retrieved at September 30, 2017 from: https://tourismeschool.com/ideal-customer-profile-persona/
Peelen, E. & Beltman, R. (2013). Customer Relationship Management. Harlow, United Kingdom: Pearson Education Limited.