Abstract:

The paper focuses on the use of cluster analysis for hotel customers’ segmentation and its possible application within the hotel marketing mix. Study works with Two-Step Cluster analysis that allows clustering of quantitative and nominal data. Main results show that using booking window (the period between the date of arrival and date of reservation creation), distribution channel, length of stay (in days) and net room rate to cluster hotel customers into homogenous segments can be beneficial during the process of customer segmentation. Six basic customer segments were identified and lately described mainly by their behaviour in time, and money spends for a single reservation. The paper directly describes the whole methodology of Two-Step Clustering and possible outputs that can be used in revenue management research.