To properly catorgize segments, variables like geography, demographics, and behavioral profiles can be correlated with guest booking for a clearer picture. In contrast, when we look at the old way of segmentation, it is not uncommon to find hotels with 60% to 70% of their business tracked under just one segment. Hotel managers should know that achieving proper segmentation involves dealing with each channel separately. Once each channel is categorized it is far easier to optimize, and then later order by categories if needed. Through tying your hotel pricing strategy to segmentation, you encourage the continued development of the unique characteristics of each segment. This avoids cost cannibalization where the wrong customer accesses the wrong rate. When building a pricing structure, hotels should allow customers to “segment themselves” with indicators such as Day of Week, Length of Stay, and Advanced Payment, ideal ways to create further segmentation with a BAR-orientated Transient Segment. Get the full story at SnapShot