A data mining approach to developing the profiles of hotel customers

Data mining techniques are proposed to help hotels understand their customers’ preferences and the ways to interact with the customers in order to develop a viable customer retention strategy.

Abstract

To stay competitive, hotels need to develop a viable customer retention strategy. Since a key to the successful development of such a strategy rests with customer relationship management, hotels should identify the most profitable ways to build and maintain a loyal customer relationship. In an effort to help hotels understand their customers’ preferences and the ways to interact with the customers, we propose data mining techniques. Based on a case study of luxury hotels in South Korea, this paper demonstrates the usefulness and practicality of the proposed data mining techniques.