In the Hospitality Industry, Location is important

Customers choose hotels that best meet their needs, even though this necessitates some sacrifices. Some consumers value location above all else and are willing to pay a little more; others value the hotel's facilities more than the surrounding amenities; and still others may have selected the hotel specifically to attend local events.

“It's elementary...” says the narrator.

It is possible to use this knowledge to attract new customers if the hospitality industry can recognise key customer motivations in relation to venue.

A hotel may discover that a portion of its rooms are booked because of its proximity to a conference centre; this information can be used to target people attending other events at the same conference centre, for example, by collaborating with the conference centre and putting advertisements in their event brochures. Depending on the customer's inflexibility of dates, the hotel will adjust its rates and deals. It may also discover that, despite its location, guests prefer to stay at a rival hotel located further away; knowing the reasons for this will allow the hotel to rethink its offerings and change its services accordingly.

Identifying ‘proto-type' customers in a variety of areas can be extremely beneficial to a hotel chain looking to expand; knowing what a potential location has to bring to a staying guest would allow the hotel to target the ‘right' demographic from the start, resulting in higher booking numbers and higher profit margins.

Simply put, consumer analysis and location analytics are very valuable tools for the hospitality industry to understand the value of location, customer reasoning, and to ensure a positive return on investment with greater certainty.

What Is The Best Way To Use Location As A Marketing Tool?

It's a common concept in digital marketing that a large part of your success is determined by when you can meet your consumers and when they're most likely to make a purchase. However, location is equally significant, and with the continued increase in smart device ownership, companies should consider using geocoding to conduct region-specific data analysis.

What exactly is geocoding?

The act of fixing a piece of data to a particular location is known as geocoding. It's not just about getting a street address or a postcode. Geocoding, on the other hand, transforms a position into spatial data and uses the location's precise geographical coordinates. Marketers would benefit from this because it allows them to micro-segment areas based on demographics.

You might be thinking at this point, "Can't this already be done with postcode information?" The answer may surprise you. This is why:

Consider the postcode LS6. It houses the University of Leeds' faculty buildings and residence halls. It houses Leeds Business School and the Leeds College of Music, as well as the bulk of Leeds Beckett University's halls and offices.

You might think, as a marketer, that you've nailed the demographic: smart, young, bohemian, ethical, tuned-in, and switched-on. While you might be right, is the millennial/Gen Z demographic truly representative of the LS6 postcode?

Several neighborhoods with older populations of low-income terraced housing are only a stone's throw away from the university buildings. There's even a jail and a number of high-crime locations. If your trendy millennial marketing strategy is based on a postcode lottery, you'll be wasting a lot of money by targeting the wrong markets – even in places where you think the services you're offering are in high demand.

Taking advantage of geofencing's marketing potential

When paired with demographic data, geofencing will help you pinpoint exactly who you want to sell to. To return to our millennial/Generation Z student case study, check-ins at a trendy bar or eatery in the region will have more marketing data than a random pot-shot at a postcode, allowing you to use targeted messaging.

Your prospect's location is a valuable calling card. While one terraced street may cater to families, another around the corner may be a hipster haven. Geofencing enables you to more precisely map areas based on demographics and neighborhood features, through which you can create appropriate messaging for your product or service. After all, your deal could be appealing to families, the elderly, and the young all at the same time; you just need to sell it differently to each demographic.

Geocoding and distance-based marketing

Geocoding is another effective marketing tool for reaching out to prospects based on their location. It makes no sense for a brick-and-mortar company like a restaurant to approach potential customers who will have to sit in traffic for hours just to get a half-price pizza deal. Many who are near the restaurant at the right time of day, on the other hand, could be even more receptive.

Finally, geocoding enables you to make better long-term marketing and business decisions. It helps you to visually explore your data and make educated decisions about how to adapt your campaigns to market your goods and services more effectively than ever before.