Market Segmentation Strategy Of Travel Agents In Royal Palm Resto: Opportunities And Challenges In The Restaurant Business In Sleman Regency

Abstract

This study analyzes the market segmentation strategy implemented by Royal Palm Restoin Sleman Regency, Yogyakarta, specifically targeting the travel agent segment. Thisstudy uses a descriptive qualitative method with the approach of E. Jerome McCarthy'stheory in 1960. Data collection techniques include observation, interviews, anddocumentation, with marketing managers and guests as the population and researchsamples. The purpose of this study is to help restaurants develop more effectivestrategies to attract and retain customers from this segment, as well as increaseprofitability and business sustainability in the competitive restaurant industry. Initially,this restaurant served regular guests, MICE events, and weddings, but due to obstaclesin reaching the target market, the restaurant decided to focus on travel agents. Thischange involved adjusting the menu budget, food variety, and facilities offered for eachtravel agent visit, including commissions and free meals for the crew. Although there aregreat opportunities, challenges arise from the high cost of food production and additionalfacilities. The travel agent segment is divided into three clusters based on budget:economy, middle, and premium. This study also discusses price and productionadjustments to reduce costs, especially in serving large tourist groups. Overall, the travelagent segment is expected to continue to grow along with the increase in tourism inYogyakarta