The Segmentation of Mobile Application Users in The Hotel Booking Journey

Abstract

Aim/Purpose: This study aims to create customer segmentation who use Online Travel Agent (OTA) mobile applications in Indonesia throughout their hotel booking journey. Background: In the context of mobile hotel booking applications, research analyzing the customer experience at each customer journey stage is scarce. However, literature increasingly acknowledges the significance of this stage in comprehending customer behavior and revenue streams. Methodology: This study employs a mixed-method and exploratory approach by doing in-depth interviews with 20 participants and questionnaires from 207 participants. Interview data are analyzed using thematic analysis, while the questionnaires are analyzed using descriptive statistics. Contribution: This study enriches knowledge in understanding customer behavior that considers the usage of mobile apps as a segmentation criterion in the hotel booking journey. Findings: We developed four user personas (no sweat player, spotless seeker, social squad, and bargain hunter) that show customer segmentation based on the purpose, motivation, and actions in each journey stage (inspiration, consideration, reservation, and experience). Recommendations for Practitioners: The resulting customer segmentation enables hospitality firms to improve their current services by adapting to the needs of various segments and avoiding unanticipated customer pain points, such as incomplete information, price changes, no social proof, and limited payment options. Recommendation for Researchers: The quality and robustness of the customer segment produced in this study can be further tested based on the criteria of homogeneity, size, potential benefits, segment stability, segment accessibility, segment compatibility, and segment actionability. Impact on Society: This study has enriched the existing literature by establishing a correlation between user characteristics and how they use smartphones for tourism planning, focusing on hotel booking in mobile applications. Future Research: For future research, each customer segment’s demographic and behavioral factors can be explored further.