The short answer
Room performance should be analysed by major market segment, not just in total. Brands define them differently, but they broadly split into OTA (portals such as MakeMyTrip, Booking.com and Agoda, sometimes including the hotel's own website), corporate (including local negotiated rates and RFP business), wholesalers and travel agents, walk-ins and direct bookings, and MICE — with weddings and social functions often separated out where that business is significant. Each segment needs its own action plan, and bookings must be tagged correctly at the time of booking or the segment data misleads.
When reviewing room performance, it’s essential to analyse the business generated by major market segments.
Each brand may have its own guidelines on market segments, but they can broadly be categorized as follows:
OTA (online travel agencies) Bookings received through online portals like MakeMyTrip, Booking.com, Agoda, etc. Hotels may also include business generated through their brand or hotel website in this category.
Corporate: Bookings from corporate tie-ups, including Local Negotiated Rates (LNR) and Requests for Proposal (RFP).
Wholesalers/travel agents: Business generated from travel agents and wholesalers.
Walk-ins/direct bookings: Guests who either come directly to the reception or call the reservation team are tagged under this segment.
MICE (meetings, incentives, conferences, and exhibitions): All the group bookings can be tagged under this segment. Properties with a lot of wedding business can have a separate segment of wedding & social functions.
Each market segment requires a detailed action plan tailored to the hotel type and city.
Another important point to remember is ensuring these market segments are accurately tagged in the system at the time of each booking. Incorrect tagging can lead to misleading information about the type of business.
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Frequently Asked Questions
Quick answers on revenue management - market segment.
Brands define them slightly differently, but broadly: OTA, meaning bookings through portals such as MakeMyTrip, Booking.com and Agoda, which some hotels extend to their own website; corporate, including local negotiated rates and RFP business; wholesalers and travel agents; walk-ins and direct bookings; and MICE.
Group bookings are generally tagged to MICE, but properties with a lot of wedding business can carry a separate segment for weddings and social functions so that volume does not hide inside the wider group number.
Yes. Each market segment requires a detailed action plan tailored to the hotel type and the city, because the buyer, the lead time and the rate behaviour differ in each one.
Incorrect tagging. The segments have to be tagged accurately in the system at the time of each booking; otherwise the reports produce misleading information about what kind of business the hotel is actually getting.
Written by
Rachit Goel
Founder & Principal Hospitality Consultant
Founder of The Hotel Adviser and a hospitality leader with 25+ years of hands-on experience across Marriott, Radisson, Ramada and Taj — spanning pre-opening, operations, revenue management and food & beverage.
