Hotel Channels profitability analysis

Report Highlights:

1. Business Problem:

A mid-sized hotel struggles to manage bookings from different channels efficiently. This report aims to understand the financial impacts of each channel to optimize strategy, reduce costs, and improve profitability.

2. Dashboard Overview:

The interactive dashboard includes key graphs:

Net Revenue per Month

Bookings per Month

Booking Number and Percent for Each Channel

Net Revenue vs. Commission

Revenue and Profit for Each Channel

3. Description and Insights for Each Graph.

4. Summary:

While OTAs drive significant bookings, direct bookings through the hotel's website and corporate partnerships are more profitable due to lower commission costs. A balanced strategy leveraging both high-volume and high-profit channels is essential.

5. Limitations:

Currently, data is insufficient to justify commissions for OTAs and travel agents. Additional data is needed on:

The number of hotel rooms booked through each channel

Client satisfaction levels, especially during high booking periods

Client loyalty metrics (Recency, Frequency, Monetary value)

6. Recommendations:

_ Collect Essential Data: Detailed records of bookings, customer satisfaction assessments, and loyalty evaluations.

_ Categorize Customers Based on RFM Scores:

- VIP Clients: High RFM scores

- Active Clients: Moderate RFM scores

- New Clients: Recent bookings but lower frequency and value

- Clients at Risk: Lower RFM scores

_ Analyze Channel Performance: Identify valuable customers from each channel and enhance marketing efforts for the most productive channels.

Implementing these recommendations will help understand the effectiveness of OTAs and travel agents in driving valuable bookings and making informed decisions about commission justification. This approach will also optimize marketing strategies to target the most profitable customer segments.