Answer: Market segmentation in the framework of Rocco Forte Hotels, it is nothing but the breaking and changing down the diverse band of tourist market in to the relative homogeneous segment. The segmentation is carried out in different stages; one is that which is based on the trip information and the other based on tourist description going to the hotel (The Environment).
On the foundation of trip explanation, the market segment is split into business travel market and pleasure travel market, wherein market of pleasure travel is considered to be the largest segment which include the visitors coming down for different purposes such as attending relationships/functions, treatment or educational vacations for a short to longer period of time. The market segment has been proven to be delicate to price fluctuations and highly inspired by financial fluctuations. The section is further bifurcated into other sections of package tours and resort trips as well (THE SURROUNDINGS).
The other segment singled out in this category is the business enterprise travel market that comprises the business enterprise users and business travelers to the hotel and whose visit is based on the purpose of attending conferences and meetings or any kind of business travelling (The Environment).
The market segmentation analysis of Rocco Forte Hotels is further layed out below -
Present Product
New Product
Present Market
Market Penetration: Hotels, Resorts, Restaurants, Spas, Weddings, Meetings and Happenings to Business as well as Leisure Travel Users of London, France, NY, Abu Dhabi Rome, Moscow etc (Rocco Forte Hotels).
Product Development: Dry out Packages especially during Ramadan and adding Breakfast-In-Bed accentuating visitors (It's never too early for a champagne breakfast, 2012).
New Market
Market Development: The group offered a nod in respect of the beginning in Saudi Arabia, Morocco, Egypt, and Lebanon in the next couple of months this season (Rocco Forte Hotels broaden in Middle East North Africa and spend 150 million euro in Sicily holiday resort, 2012).
Diversification: Development in the new market to offer food packages in the airlines.
Question 2:
What segments will your business currently target?
Answer: The Rocco Forte presently working in the hotel industry is generally focusing on business travel consumers as well as leisure travel consumers. The business travel users will be the tourists who are browsing the hotel for the business purposes. They are really basically the professional employees of any business who come to participate in business related activities. This includes a huge selection of activities from conferences, conferences, educational journeys etc. They often visit singularly and even sometimes in teams. On considering the frequency of the visit to the hotel, it was identified that their visit is normally daily, every week or on every month basis. In this particular segment, the hotel encounters local as well as international trips both generally for an extended passage of time. In addition, it was recognized that these visitors are coming for the purpose of attending meetings and conferences, and also for the purpose of exhibitions, classes, product launches and also to serve incentive travel.
On the other hand, the leisure section includes site visitors and guests from package trips, several independent travelers, visitors from the resorts section, marriages and marriages.
Question 3:
Are there any other segments you think have value adding prospect of your business? If so, do these options that you might wish to explore further?
Answer: Recognition of new customer sections is vital for to achieve competitive border within the whole hotel industry. In previous year or two, it was determined that there surely is a tremendous increase in the hotel demand with a spectacular progress in the diversification of consumers. Over the years, the Rocco Forte Hotel has experienced a continuous demand especially from the categories of government travelers, sports activities team, extended-stay customers, and military employees and among other different travelers making up the category of commercial and leisure segment.
On this move of the paradigm change to focus on consumer sections, the Rocco Forte Hotel should delve further in understanding the needs and anticipations of other sections defined below -
Women
The Rocco Forte hotel string must be conscientious in portraying women in the UAE as a result. The advertising and campaign as well as plans should target to the segment whilst showing how women are enjoying and comforting when they visit and check in to the hotel.
Airline Tie-Ups
The Rocco Forte hotel should enter into the airline tie up ups in order to supply the distinguished members a lavish stay across the globe. By availing and providing of the grand stay across different international properties, the hotel can run different account and pay back programs for the people eventually yield great results for the hotel.
Adventure and Eco - Tourism Segment:
By getting into this section, the hotel would certainly achieve success in appealing to huge crowd belonging to the teenage segment and on the arrival of these guests, it is critical for the concierge to make arrangements to meet their needs.
Question 4:
Does any environmental evaluation you have done so far suggest that customer needs are likely to change in the future? If so, does indeed this have any implications for the ways that the patterns of market segmentation change as time passes?
Answer: On executing PESTEL analysis of the whole hotel industry in the UAE, it is determined that the components of the examination certainly have implications in the changing habits of market segmentation as well as tendencies in food service and development.
With the upsurge in the vegetarianism within the UAE population which is seen as a significant interpersonal factor, the Rocco Forte would concentrate on vegetarian market section.
The imperative increase in the demand for exotic cuisine has shifted the move of the echelons of the hotel to the market segment and site visitors from Japan, China and Thailand.
Owing to the increase in the economical concerns, the Rocco Forte multinational brand is currently adopting the option of outsourcing which will result in the starting of new retailers of pubs and coffee residences across different locations.
Moreover, fluctuations in the prices and volatility will lead to the decrease of visitors of leisure portion and thereby hotel will consecutively concentrate more towards business segment.
The upsurge in the carbon footprints anticipated to greenhouse gas emissions through the production by the business will change its emphasis from longer food miles to reduce the total mileage from plough to plate.
The expansion in the legal transparency has resulted in rising awareness of consumers who would like to find out about the hidden facts of food traveling from plantation to fork.
And, obesity is a major problem in today's era and certainly UAE is facing over weight epidemic and therefore the move has been shifted to more add-ons and types and other healthier options on menus.
Question 5:
Are there differences in the resources and competencies necessary to perform well over different segments that your business targets, or might aim for in the future? Will what you have concluded about segmentation business lead to any revisions to prior analysis?
Answer: While servicing set up and target market segments, the brand or the business is sure and aware about the needs and choices of the consumers and users of the particular services. Inside the framework of the Rocco Forte Hotel, at the time of servicing business sections and leisure sections, the echelons of the top management are investing in innovative efforts by means of strategies and competencies those which carried out and required at the time of entering new market segments or new consumer segments (THE SURROUNDINGS).
Studying new market and consumer sections will help the business to identify and execute competencies and opportunities that will have an impact on the success. Several areas are should be identified and studies as a part of market analysis while stepping into new marketplaces -
Description of instant area: This includes several throwing focus on elements such as commercial profile, proposed innovations, uses of land, protection and option of close by services.
Proximity to Demand Generators: This consists of several attractions to guests and guests and vacationers.
Volume of Traffic: This head covers the magnitude of level of traffic is counting towards the success and what's the entire pattern of traffic of friends and visitors to the hotel.
Accessibility: This consists of regions of major attractions to the hotel tourists, and especially includes roads and highways and malls combined with the decrease and facilitation of access and leave (THE SURROUNDINGS).
Question 6:
Do competitors focus on, or perform relatively better in, certain segments somewhat than others?
Answer: The international hotels giving a hardcore competition in the region of the UAE to the Rocco Forte Hotel and constantly paving their ways towards increasing their partnerships within as well as across the borders. On throwing light on the major opponents of the international hotel string Rocco Forte, Hyatt Group of Hotels, Jumeirah Hotels and Resorts are presenting challenging competition in the section where Rocco Forte has been suggested and proposed to enter into. These brands have long their international partnering and internal link ups with the leading international airlines of the country. Qatar Airways and Emirates Airlines one of the exceptional brands in the flight industry in the country has substantially agreed into the shared agreement of providing luxurious stay and other deals to the individuals going from the respected airlines (Associates at a glance).
