BUSINESS PROBLEM:
In recent years City Hotel and Resort Hotel have seen drastic cancellation rates of their respective bookings. Each hotel is thus dealing with a number of issues including fewer revenues and less than ideal hotel rooms to use. Therefore , lowering Cancellation rates is both hotels’ primary goal in order to increase their efficiency, boost their revenue and for us to offer thorough business advice to solve this problem.
ASSUMPTIONS-
- No unusual occurrences between 2015-17 will have substantial effect on data used.
- The information is still current.
- There are no unanticipated negatives to the hotel employing advising technique.
- The hotels are not currently using any suggested solutions.
- The biggest factor reducing effectiveness of earning income is cancellations.
- Clients make the hotel reservations the same year as cancellations.
- Cancellations result in vacant rooms for booked length of time.
Research Questions-
- What are the variables affecting hotel reservation cancellations?
- How can we make reservation and cancellation process better?
- How will hotels be assisted in making pricing and promotional decision?
Hypothesis-
- More Cancellations occur when prices are higher.
- Customers cancel more frequently when there is a longer waiting list.
- The majority of clients are coming from offline travel agents to make their reservations.