This master project presents a fully customer segmentation strategy for Travel Tide that focuses on personalized perks and data-driven insights. The analysis focuses on increasing customer satisfaction and optimizing revenue through targeted offers. Key metrics and behavioral patterns form the basis for this strategic approach. I provide recommendations for implementation.
- Data analysis & fundamentals
- Segmentation & categorization
- Perk development
- Visualization & Presentation
- Strategic recommendations
- implementation planning
- risk management
Link coming soon
Data Analysis Foundation Travel Tide's segmentation strategy is built on robust data requirements including 4,413 total users analyzed. The analysis covers customers with minimum 7 sessions and 2+ booked trips from January 2023 onwards. Six distinct customer segments were identified based on fully travel behavior patterns. The precise algorithm incorporates age, marital status, and travel patterns for accurate categorization.
The Mature Single segment represents the largest customer group with 1,664 users (37.7% of total customer base). These customers are aged 35-64, unmarried, and demonstrate flexible travel patterns with premium spending preferences. They show strong interest in cultural experiences and educational tours, prioritizing quality over cost. The recommended perk focuses on premium experiences and cultural tour packages.
Couple Travelers constitute 1,030 users (23.3%) and are characterized as married individuals without children aged 35-64. They typically travel in pairs and prioritize romantic experiences and quality time together. Common experiences and shared activities are highly valued by this segment. The tailored perk offers romantic upgrades and couples spa packages.
These are 717 travelers (16.3 %) who are characterized by the fact that they have children and a longer trip duration of more than 5 nights. Over 30% of their trips take place during summer vacations and require multiple seats with a higher luggage capacity. They prefer apartment-style stays with multiple rooms to meet the needs of the family. The benefits package includes offers such as “kids fly free” and entertainment packages for families.
Single Travelers account for 519 users (11.8%) and are typically unmarried individuals under 35 years old. They demonstrate flexible and spontaneous travel behavior with above-average hotel price preferences. Adventure and unique experiences are key motivators for this segment's travel decisions. The perk offering includes solo traveler bonuses and city tour credits.
The business traveler segment includes 318 users (8.6 %) who are characterized by short trips of 2-3 nights, 70 % of which take place on weekdays. They are under 65 years old and usually book 1-2 seats with minimal luggage requirements. They prefer accommodation in single rooms to meet their professional requirements. Priority check-in and lounge access meet their requirements for efficiency and comfort.
The senior traveler segment includes 103 users (2.3%) and is the smallest but most significant segment of the 65+ age group. They prefer longer stays of 7+ nights and travel 40% or less during peak season. They prefer premium properties and luxury features and prefer double rooms or suites. Senior discounts and flexible booking options make up their targeted perks package.
Strategic Recommendations Priority focus should target the Mature Single segment (37.7%) with premium cultural experiences for maximum revenue impact. Quick wins can be achieved by implementing Business Traveler perks first due to high willingness to pay. Revenue optimization focuses on premium segments representing 48.6% of customers with above-average spending. Technology integration and partnership development support long-term personalization goals.
Implementation strategy Immediate measures include activating automatic segmentation by integrating SQL algorithms and implementing perk displays in user dashboards. Medium-term goals focus on building partnership networks and improving the mobile app with A/B testing frameworks. The long-term vision includes AI-powered personalization, global expansion and premium loyalty programs. The strategic implementation ensures the systematic rollout of segment-specific perks.
Supporting data section contains tables and charts to support the segmentation analysis. The customer segment overviews provide a detailed breakdown of key characteristics, demographics and travel behavior. Visual representations include bar charts showing the distribution of users and pie charts showing the percentage breakdown. Individual user examples demonstrate the practical application of segment allocation and benefit allocation.