A data mining approach to developing the profiles of hotel customers

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.