Hotel Booking Analysis

About this project

Hotels-Booking

Business Problem

In recent years, City Hotel and Resort Hotel have seen high cancellation rates. Each hotel is now dealing with several issues as a result, including fewer revenues and less-than-ideal hotel room use. Consequently, lower cancellation rates are both hotels' primary goal to increase their efficiency in generating revenue, and for us to offer thorough business advice to address this problem.

Key Insights:

• The discernible correlation between pricing and cancellation rates highlights a critical aspect impacting hotel revenue. Elevated prices tend to trigger a higher frequency of reservation cancellations, significantly influencing the overall revenue stream.

• City Hotels, being the more preferred choice over Resort Hotels, might signify a pricing advantage for city accommodations. This preference potentially reflects a perception of lower costs associated with city stays.

• Moreover, fluctuations in average daily rates between City and Resort Hotels indicate a competitive edge during certain periods, particularly when city hotel rates dip below those of Resort Hotels. Weekends and holidays, showcasing potential increases in Resort hotel rates, reflect an opportunity to capitalize on these peak periods.

• The concentration of canceled reservations in August and the noticeable spike in January, particularly in cancellations, underscore the need for targeted strategies during these months. These insights can drive focused marketing or pricing initiatives to manage cancellations effectively and optimize revenue streams.

• Furthermore, the dominance of Portugal in reservation cancellations highlights an area for deeper investigation. Understanding the underlying factors driving this trend can aid in devising targeted measures to mitigate cancellations from this region.

• The prevalence of Online Travel Agencies and Group bookings signals a substantial reliance on intermediaries for reservations. However, the low percentage of direct bookings accentuates the potential for enhancing direct booking strategies.

Recommendations:

1. Pricing Strategies:

• Implement dynamic pricing models that adjust rates during high-cancellation periods like August and January. Consider offering incentives or discounts during these months to mitigate cancellations.

• Conduct market research to ascertain competitive pricing relative to City and Resort Hotels. Leverage periods where City Hotel rates are lower to attract more bookings.

2. Targeted Marketing and Engagement:

• Focus marketing efforts in Portugal to understand customer behavior leading to high cancellations. Tailor promotions or initiatives to address concerns specific to this region.

• Create targeted campaigns emphasizing direct booking advantages, aiming to increase the share of direct bookings and reduce reliance on intermediaries.

3. Peak Period Optimization:

• Develop packages or experiences unique to Resort Hotels during weekends and holidays when rates tend to rise. This can attract guests despite the higher prices.

• Leverage data insights to strategize during peak months, ensuring optimal occupancy while minimizing cancellations through tailored offerings or loyalty programs.

4. Customer Relationship Enhancement:

• Improve customer engagement and service by implementing flexible cancellation policies, offering additional benefits for direct bookings, or providing personalized experiences to encourage loyalty.

5. Continuous Data Analysis:

• Establish an ongoing analysis process to monitor the impact of implemented strategies. Continuously refine approaches based on updated insights and customer feedback.