Hotel Booking Cancellation Analysis

In recent years, City Hotel and Resort Hotel have experienced high cancellation rates, resulting in several challenges such as reduced revenues and suboptimal room utilization. This analysis aims to delve into the factors influencing hotel booking cancellations, offering insights to improve efficiency in revenue generation and providing actionable recommendations for the hotels.

High cancellation rates have led to decreased revenues and less efficient room utilization in City Hotel and Resort Hotel. Lowering cancellation rates is crucial to enhance revenue generation efficiency and provide strategic business advice to tackle this challenge effectively.

Research Questions

1. What variables significantly impact hotel reservation cancellations?
2. How can hotel reservation cancellations be minimized or improved?
3. How can hotels make informed decisions regarding pricing and promotional strategies?

Data Source

The dataset used for this analysis can be found in the "hotel_booking_cancellations.csv" file in this repository. This dataset includes information on hotel bookings, cancellations, customer demographics, and booking details.

Files Included

1. hotel_booking_cancellations.csv: Main dataset used for analysis.
2. hotel_booking_cancellation_eda.ipynb: Jupyter Notebook containing the EDA (Exploratory Data Analysis) code.
3. README.md: The current file providing an overview of the project.

Key Findings and Recommendations

1. Price Sensitivity: Analysis reveals a correlation between cancellation rates and pricing. To mitigate cancellations, hotels can adjust pricing strategies, offering discounts for specific locations or during peak periods.
2. Weekend Discounts: Resort hotels show a higher cancellation ratio compared to city hotels. Providing reasonable discounts on weekend stays or during holidays could help reduce cancellations.
3. Campaigns in January: January exhibits the highest cancellation rates. Hotels can plan marketing campaigns with attractive offers during this month to boost revenue.
4. Customer Loyalty Discounts: Offering loyalty coupons to returning customers for discounts on future visits can incentivize repeat bookings.