The primary goal of this project is to analyze hotel booking cancellations and other factors influencing revenue generation for City Hotel and Resort Hotel. High cancellation rates have led to decreased revenue and suboptimal room utilization for both hotels. Therefore, the project aims to provide comprehensive business advice to address this issue and improve revenue generation efficiency.
City Hotel and Resort Hotel have been experiencing high cancellation rates in recent years, leading to reduced revenues and suboptimal room utilization. Lowering cancellation rates is essential for increasing revenue efficiency and providing effective business advice to address this problem. The analysis focuses on understanding hotel booking cancellations and other factors impacting revenue generation.
- The dataset provides current and relevant information for efficient hotel analysis.
- There are no unforeseen negative consequences associated with implementing suggested solutions.
- The hotels are not currently employing any of the suggested strategies.
- Booking cancellations significantly affect revenue generation efficiency.
- Cancellations result in vacant rooms for the booked duration.
- Clients typically make hotel reservations within the same year as cancellations.
1. What are the variables influencing hotel reservation cancellations?
2. How can hotel reservation cancellations be reduced?
3. How can hotels make pricing and promotional decisions more effectively?
1. Higher prices lead to more cancellations.
2. Longer waiting lists result in increased cancellations.
3. Offline travel agents are the primary source of hotel reservations.
- 37% of clients cancelled their reservations, significantly impacting hotel earnings.
- City hotels have more bookings compared to resort hotels, possibly due to pricing differences.
- Average daily rates fluctuate between city and resort hotels, influenced by weekends and holidays.
- August sees the highest number of confirmed and cancelled reservations, while January has the highest cancellation rate.
- Cancellations are correlated with higher prices, with Portugal being the top country for cancellations.
- Online travel agencies are the primary booking source for clients.
- Implement pricing strategies to lower rates and prevent cancellations.
- Offer discounts on room prices for resort hotels during weekends or holidays.
- Conduct marketing campaigns in January to increase revenue.
- Improve hotel quality and services, particularly in Portugal, to reduce cancellation rates.