Leading hospitality tech firm unlocked 15% revenue uplift by analyzing cancellation drivers
21 Feb 2023
2 min read
The client wanted to improve the realization (realized revenue / booked revenue) by understanding the various drivers of cancellation across different cities, offerings, channels, etc., and set up a framework to control this metric on a continuous basis.
Context
Company: A large hospitality tech player
Problem
statement
The
client wanted to improve the realization (realized revenue / booked revenue) by
understanding the various drivers of cancellation across different cities,
offerings, channels, etc., and set up a framework to control this metric on a
continuous basis.
Our
Approach
- We conducted extensive customer conversations across cities to understand the reasons leading to cancellations
- We performed comprehensive data analysis on multiple data sets to identify trends and insights at a user level, property level, city level, channel level, and brand level
- Through our in-depth interviews, we built a refined “MECE” reason tree to understand the major drivers of cancellations across X properties
- A comprehensive view of reasons for cancellation with incidence rate was built out to size the prize and the need for targeted action items
- We estimated the overall potential of improvement in realization from various reasons
- We identified a few high-impact areas and conducted pilots or proof-of-concept exercises to show the impact of some of the action items suggested to the company
Key
Outcomes
- We helped our client understand the various drivers of cancellation and the action items required to tackle them.
- An overall governing framework was established along with necessary systems and processes to improve this metric.
- Through this engagement, we helped the client identify an uplift potential of 15% of revenue
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