Exploring the Use of the Abbreviated Technology Readiness Index for Hotel Customer Segmentation

Abstract

Traditional tools used for segmenting hotel clientele rely on demographic and hotel-use characteristics (such as desired room type). However, with the emergence of self-service technologies and with technology-based components added to the list of hotels’ service offerings, the authors propose using the abbreviated Technology Readiness Index (TRI) to improve the effectiveness of customer profiling, not only for technology use but also more generally for market segmentation. The abbreviated TRI was found to be a useful segmentation tool as it allows managers to form cohesive customer segments, each with a particular attitude toward technology and each with its own demographic characteristics and usage patterns. This study will help managers tailor their technology offerings to the needs and preferences of different segments based on their comfort with technology.