Report

Analysis and Findings --

1. The accompanying bar graph shows the percentage of reservations that are cancelled and those that are not. It is obvious that there are still a significant number of reservations that have not been cancelled. There are still 37% of clients who cancelled their reservation, which has a significant impact on the hotel’s earnings.

2. In comparison to resort hotels, city hotels have more bookings. It’s possible that resort hotels are more expensive than those in cities.

3. The line graph above shows that, on certain days, the average daily rate of City Hotel is less than that of Resort Hotel, and on other days, it is even less. It goes without saying that Weekends and Holidays may see a rise in Resort Hotel ADR (Average Daily Rate).

4. We have developed a grouped bar graph to analyze the months with highest and lowest reservation levels according to reservation status. As we can see that both the number of confirmed and cancelled reservations are in the month of August, whereas January is the month with maximum number of cancellations.

5. This bar graph represents that cancellations are most common when prices are greatest and least common when prices are lowest. Therefore the cost of accomodation is solely responsible for cancellations.

   Now, let’s see which country has the highest Reservation Cancelled

As we can see that Portugal is the top Country with 70.07% Cancellations happening, so there some new marketing strategy is required as well as price is a factor.

We check the area from where guests are visiting the Hotels and making reservations. Is it coming from Direct or Groups, Online or Offline Travel Agents? Around 46% of the clients come from Online Travel Agencies, whereas 27% come from Groups. Only 4% of the clients book hotels directly by visiting them and making reservations.

As seen in the graph, reservations are cancelled when the Average Daily Rate (ADR) is higher than when it is not cancelled. It clearly proves in all the above analysis that higher ADR leads to higher cancellations.

Suggestions-

1. Cancellation rate rises as the ADR does. In order to prevent cancellations of reservations, hotels could work on the pricing strategies and try to lower the rates for specific hotels based on their locations. They can also provide some discounts to the customers.

2. As the ratio of the cancellation and not cancellation is higher in Resort Hotels than the City hotels. So, the hotels should provide a reasonable discount on the room prices on weekends and on holidays.

3. In the month of January, hotels can start campaigns or marketing with a reasonable amount to increase their revenue as the cancellation is highest in this month.

4. They can also increase the quality of their hotels and their services mainly in Portugal to reduce the cancellation rate present there.