HOSPITALITY · COMMERCIAL ANALYTICS
Over £20m of revenue impact, fixed in the pricing algorithm.
Revenue impact identified and resolved through pricing changes.
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The situation.
An accommodation provider had expanded its estate significantly over five years but had a limited view of its customers. One-third of bookings came through indirect channels, and the client was keen to shift more of these to direct channels.
The process.
We ran in-depth analytics of bookings data to identify differences between direct and indirect bookings across key metrics, and analysed variation in customer preferences across channels through an on-site survey with more than 3,000 respondents. Direct customers outperformed indirect customers across several metrics, which underlined the case for a channel shift, so we developed a customer proposition built around a loyalty programme.
The outcome.
The customer proposition is forecast to drive up to 10% of like-for-like revenue and contribution uplift, and the strategy is predicted to shift 50% of indirect bookings to direct channels over the next three years.
MORE WORK
Other engagements.
HOSPITALITY · COMMERCIAL ANALYTICS
A ten-year size of prize for revenue management.
A clear, agreed size of prize for revenue management investment.
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HOSPITALITY · COMMERCIAL ANALYTICS
A rigorous experiment to test vendor RMS against in-house.
Defined to measure vendor systems against the in-house RMS.
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