Hotel-Booking-EDA

Introduction

In this report, I present an analysis of hotel booking data obtained from Kaggle, focusing on the issue of high cancellation rates experienced by both City Hotel and Resort Hotel in recent years. The objective is to provide comprehensive business advice to tackle this problem effectively.

Link to Data: https://www.kaggle.com/datasets/mojtaba142/hotel-booking

Assumptions

1. No unusual occurrences between 2015 and 2017 significantly impact the data used.
2. The information is current and can be used to analyze hotel plans effectively.
3. There are no unanticipated negatives to the hotel employing any advised technique.
4. The hotels are not currently using any of the suggested solutions.
5. Booking cancellations significantly affect revenue generation.
6. Cancellations result in vacant rooms for the booked length of time.
7. Clients make hotel reservations the same year they make cancellations.

Research Questions

1. What variables affect hotel reservation cancellations?
2. How can hotel reservation cancellations be minimized?
3. How can hotels make pricing and promotional decisions effectively?

Hypotheses

1. More cancellations occur when prices are higher.
2. Longer waiting lists lead to more cancellations.
3. The majority of clients book through offline travel agents.

Analysis and Findings

• A significant proportion of reservations (37%) have been cancelled, impacting hotel earnings.
• City hotels exhibit higher booking rates than resort hotels, possibly due to pricing differences.
• Fluctuations in average daily rates between city and resort hotels are observed, particularly during weekends and holidays.
• August has the highest reservation levels, while January records the highest cancellations.
• There is a correlation between higher prices and increased cancellation rates, particularly evident in Portugal.
• Online travel agencies are the primary booking source, accounting for 46% of bookings.
• Reservations are more likely to be cancelled when the average daily rate is higher.

Suggestions

1. Adjust pricing strategies to offer discounts and promotions tailored to specific locations to mitigate cancellations.
2. Consider offering discounts at resort hotels during weekends and holidays to balance the cancellation ratio.
3. Implement campaigns and marketing efforts in January to counteract high cancellation rates during this month.
4. Enhance hotel quality and services, particularly in Portugal, to reduce cancellation rates.