Guest Segmentation and Pricing: Lessons from the Golf Course for Hotels
Albert BarraJanuary 27, 2025 · 8 min read
THE IDEA
A guest experience depends on more than facilities—it is shaped by the environment a hotel creates and the people who share it. A visit to two very different golf clubs offers a useful lesson in how pricing and guest segmentation influence atmosphere, expectations and, ultimately, satisfaction. In hospitality, success is not about appealing to everyone, but about delivering a consistent experience for the guests who value what your hotel offers.
In the world of hospitality, the decisions we make as managers are not always limited to designing a service or optimising a process. Often, the best lessons emerge from personal experiences outside the professional environment. That was the case for me recently, when I decided to switch off for a while by playing golf, only to realise just how much guest segmentation and pricing influence the quality of an experience.
Near my hotel, there are two golf clubs I visit depending on what I am looking for at any given time. Both offer excellent facilities, but their audiences and approaches could not be more different. One, more exclusive and traditional, is built around clear rules and high prices that ensure a peaceful and sophisticated experience. The other, more accessible and popular, focuses on volume and a relaxed atmosphere, at the expense of some structure. My choice to visit the second club taught me a lesson that connects directly with what we face in hotel management: how do segmentation and pricing affect the guest, the atmosphere and, ultimately, the overall experience?
Sometimes, in our pursuit of offering something different, we can end up compromising what we value most: peace, order and personal satisfaction. My experience, although outside the hotel environment, led me to reflect on how these same principles are essential when defining business strategies, and how even small adjustments to segmentation can radically transform what guests perceive. What happened on the green is, in fact, a valuable metaphor for what we face every day as managers.
Close to the hotel I manage, I have two golf clubs that I visit depending on the occasion. One, which we will call "GM", is a conservative club that embodies the traditional values of golf: elegance, clear rules and mutual respect. It is a sophisticated place, with high fees and an atmosphere where silence and concentration are valued. The other, which we will call "CA", is more accessible, with reasonable prices, many more members and a highly diverse clientele.
Yesterday, I decided to try something different. Rather than going to my usual GM club, where I know I will enjoy a peaceful and orderly time, I chose CA, thinking that a more relaxed setting might offer me a different perspective. However, it was not the right decision.
When I arrived at CA, the atmosphere was completely different. There was a constant flow of people and, although the courses were in acceptable condition, the experience was far from ideal. Noise took centre stage: people speaking loudly, children running through the shared areas and players who seemed to disregard any form of etiquette or rules of coexistence. In golf, as in many other activities, concentration is key, and any interruption can break that moment of flow in which you enjoy the game. Yesterday, that moment never came.
The basic respect for others that is so essential in a sport like this was simply not there. I tried to focus on my game, but the shouting, shrill laughter and overall lack of organisation made it impossible to enjoy. After just over an hour, I found myself having to leave with the feeling that I had wasted my time and money.
A Reflection on Segmentation and Pricing
This experience is not unique to golf. If we transfer this situation to the hotel sector, we find many similarities. Segmentation and pricing not only determine the audience we attract, but also the experience we can guarantee. Below, I explore several conclusions that connect my experience at the golf club with hotel management:
Price acts as a filter. GM, with its higher fees, attracts not only experienced golfers but also people who share certain values: respect for rules, enjoyment of silence and a genuine appreciation for the sport. This “filter” is not exclusionary; rather, it ensures an atmosphere that elevates everyone’s experience. In a hotel, pricing can be a tool for segmenting your audience and ensuring an environment that aligns with the expectations of the segment you are targeting.
The setting is part of the experience. At CA, although the courses were in good condition, the noise, disorder and lack of control over the atmosphere completely undermined my time there. In a hotel, the setting is everything. It does not matter how much you have invested in décor, technology or amenities if you cannot ensure that the atmosphere is consistent with guest expectations.
Rules and control ensure quality. GM has a dress code and strict rules which, although they may seem outdated to some, ensure an optimal experience for its members. In the hotel sector, setting clear boundaries around guest behaviour and expectations for shared spaces can make the difference between an exceptional stay and a disappointing one.
Volume is not always synonymous with success. CA, with its lower fees, has succeeded in attracting a large number of members. However, this strategy, based on volume rather than quality, has had a negative impact on the experience. In hospitality, a strategy based solely on competitive pricing may attract a high volume of guests, but at the cost of compromising the experience of your ideal guests.
After this experience, I have reflected on how these principles can be applied to hotel management:
Establish a clear ideal guest profile. If you try to please everyone, you end up disappointing many. Clearly define who your target guest is and design an experience that genuinely meets their expectations.
Invest in the experience, not just the infrastructure. At GM, what is most valued is not the courses themselves, but the environment that has been created. In a hotel, this could mean ensuring an atmosphere suited to rest, exclusivity or enjoyment, depending on the segment you are targeting.
Clear rules are not restrictive; they are protective. Sometimes, a lack of control can lead to chaos, as I experienced at CA. In a hotel, implementing rules around behaviour, schedules or even the use of common areas can improve coexistence and, consequently, overall guest satisfaction.
Do not be afraid to be selective. Lowering prices to attract more guests may seem like a quick solution, but in the long term it can erode the perceived value of your property and drive away the segment you truly want to retain.
My experience at CA reminded me of something fundamental: quality is not always found in quantity, but in the ability to deliver an impeccable experience to those who value what you truly offer. Both on the green and in hospitality, success lies in attracting the right guests and ensuring an environment where they can fully enjoy what they are seeking.
I believe there is something fundamental we must all remember: the ideal guest is not measured solely by their spending power, but by how well they align with the values and experience we want to offer. In my case, that difference was evident at the two golf clubs. It was not merely about price, but about the kind of atmosphere each place fosters and how that atmosphere affects the guest’s enjoyment. In hospitality, exactly the same thing happens: the experience is not built solely through facilities or marketing, but through selecting and understanding the audience you want to attract.
A key aspect is that quality is not always visible at first glance. In a hotel, as in golf, the experience lies in the details: in how guests are treated, in the tranquillity of shared spaces and in respect for the rules that ensure collective wellbeing. This does not mean being restrictive; it means having the courage to establish boundaries and priorities in order to protect what your guests value most. Sometimes, that means making unpopular decisions, such as raising rates or adjusting the guest profile, but always with the aim of protecting the experience that defines your brand.
It is also important to reflect on how you communicate your values. If GM’s rules and high fees were not accompanied by clear communication of what they represent, they could be perceived as elitist rather than differentiating. The same applies in hospitality: it is essential that guests understand the reasons behind your decisions, whether in terms of pricing, policies or services, so that they can appreciate them as added value rather than as a barrier.
On the other hand, we must recognise that not all guests who do not fit your profile are “bad guests.” They are simply looking for something different. In CA’s case, many of its members probably value accessibility and informality more than silence or etiquette. That is why businesses need to segment: so that every audience can find a place where they feel comfortable and valued, and so that you can focus on offering the best to your target segment.
To conclude, I would like to leave you with one practical piece of advice: do not be afraid to be selective. In the short term, narrowing your target guest profile may seem as though it will cost you opportunities, but in reality, it ensures that you build stronger, more profitable and longer-lasting relationships with the right guests. Ultimately, what distinguishes a good hotel from an exceptional one is not attracting everyone, but creating a place where those who truly value your proposition not only return, but become your most loyal ambassadors.
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