Question

You  are an entrepreneur who is designing a new line of boutique hotels located along Florida’s coastlines. Each of the 75 guest rooms in each hotel will offer upscale decor, Wi-Fi, and iPod docks for a nightly rate of $299. The hotels will have a spa, an on-site restaurant and a separate full-service bar that features local musicians. Describe the demographics—age, gender, family life cycle, income and social class, ethnicity, and place of residence—of your target customer.

Answer 1

Answer: Given,

Guest roooms =75

Hotel offers (upsale, wi-fi,and ipod docks) =$299

The prospective customer demographics can be identified as

Age: 30 – 55

The age group is a critical factor in consideration. The fact here is that the hotel is an upscale hotel with comparatively a higher price range. As a result, younger generation (who have recently began working) will likely be unwilling to spend a lot for vacations. People within the age of 30 – 55 will have the income stability in order to pay for the hotel and its services.

Gender: Male/Female

There cannot ideally be a gender classification for the hotel service. The customers can be male or female. Among all the parameters, this is likely the least important parameter to consider.

Family life cycle: In a relationship, Engaged, Married, Married with kids

As mentioned earlier, the hotel is targeted towards an upscale crowd of people. Considering that, the people who have families or will be vacationing with their partner are likely to be willing to spend more for a hotel. People have the tendency to go through budget hotels if they are alone but when they are with company that they care about, they will be willing to spend more. In addition, people in this family lifecycle will also have the stability to afford the hotel.

Income: $150,000 - $300,000 annual income

For a two day stay, the hotel bill (only for stay) will be $600. Only the people with an annual income of $150,000 or more will be comfortable to spend such amount of money and the semi luxurious services that comes with the hotel stay. On other spectrum, people who earn more than $300,000 will likely be willing to stay at a bigger branded hotels as they may not want to experiment with a new hotel. These people may choose a 5 star hotel for their accommodation. As a result the ideal income group will be the one mentioned above. Overall the target is the upper middle class social group.

Ethnicity: Caucasians, Asians

While the hotel will not be discriminating the customers racially, the American ethnicity can be (to some extent) generalized based on their ethnicity. The African Americans usually belong to a working class group and the same can be said for many of the Europeans and Asians. However, certain Asian communities are generally well-off to do and can afford this hotel. Similarly the Caucasian population has the propensity to spend more money on vacation and will likely be another suitable ethnic group to target.

Place of residence: Metropolitan cities

Florida will serve as a vacation destination for most people. The people who will likely look at Florida as a vacation destination will be people living in metropolitan cities where they are busy with their work. These people will be interested in the types of services that are mentioned (premium drinks, snacks in the mini bar, local music) as an escape from their busy schedule.

Thank you!