The purpose of this research is to understand the circumstance of market segmentation of motels nowadays, and to justify and compare the key success factors of administering different types of motels. This research was conducted by owners of registered motels in Taiwan. Each of the 370 subjects was given a questionnaire to fill out. A total of 106 questionnaires was returned and then deduct 6 uncompleted ones. Out of those, 28%was valid (100 out of 370). The result of the regression indicates that the profits of high-class motels are decided by whether the decoration is special or arousing enough to attract customers, in spite of their high price. Further more, they can provide more satisfactory service by hiring more professional employees at the cost of good packages. The profits of moderate motels are decided by whether the choice of living style is right and whether the area is large enough. Available from the internet, providing exclusive sanitary equipment, with security facilities and coupons are all key factors to expand market shares. The findings of this research prove that motels with different market segmentation should invest their resources in different key success factors, and then they can improve their performance efficiently.
