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Provide Insights to the Revenue Team in the Hospitality Domain

Problem Statement

"AtliQ Grands owns multiple five-star hotels across India. They have been in the hospitality industry for the past 20 years. Due to strategic moves from other competitors and ineffective decision-making in management, AtliQ Grands are losing its market share and revenue in the luxury/business hotels category. As a strategic move, the managing director of AtliQ Grands wanted to incorporate “Business and Data Intelligence” to regain their market share and revenue. However, they do not have an in-house data analytics team to provide them with these insights.

Their revenue management team had decided to hire a 3rd party service provider to provide them with insights from their historical data."

Objectives:

Develop key metrics:

Calculate and visualize KPIs like Revenue, Occupancy %, RevPAR (Revenue per Available Room), ADR (Average Daily Rate), DSRN (Daily Sellable Room Nights), DBRN (Daily Booked Room Nights), and DURN (Daily Utilized Room Nights).

Create an intuitive dashboard:

Design a dashboard that allows stakeholders to explore these KPIs by city, room type, and week, helping them understand performance trends and make data-driven decisions.

Provide insights and recommendations:

Analyze the data to identify patterns, trends, and potential areas for improvement, with a focus on improving operational efficiency and revenue growth.

The Key Performance Indicators(KPIs) in the hospitality industry:

  1. Revenue: This is the total income generated from the hotel operations, typically from room bookings, but it can also include other services like food and beverages, events, and additional services. It's a key measure of overall business performance.

  2. Occupancy %: This KPI measures the proportion of available rooms that are occupied during a given time period. It is a crucial metric for understanding hotel demand and capacity utilization.

  3. RevPAR (Revenue Per Available Room): A critical KPI that combines both room revenue and occupancy to give an overall picture of how well a property is performing. It’s calculated as Revenue ÷ Available Room Nights.

  4. ADR (Average Daily Rate): This represents the average rate paid for rooms sold and is a key measure of a hotel’s pricing strategy. It’s calculated as Total Room Revenue ÷ Number of Rooms Sold.

  5. Daily Sellable Room Nights (DSRN): This refers to the total number of room nights available for sale on a given day. It's important for assessing how much inventory is available to sell and can help in measuring potential revenue capacity.

  6. Daily Booked Room Nights (DBRN): This represents the number of room nights that have been booked for a given day. It's a key indicator of how well a hotel is selling its available inventory.

  7. Daily Utilized Room Nights (DURN): This metric shows the number of room nights that have actually been used (stayed in) on a given day, as opposed to simply being booked. It can provide insights into cancellations, no-shows, or other factors affecting room utilization.

Insights and Recommendations

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Results and Impact

Delivered a dynamic and comprehensive dashboard that allowed AtliQ Grands' management to:

  • Track key performance metrics across all properties.
  • Identify underperforming locations and take corrective actions.
  • Adjust pricing and marketing strategies based on real-time data.
  • Better understand the impact of cancellations and optimize room utilization.