Cancellation Analytics & Revenue Leakage Prevention for a Leading Hospitality Brand
Overview
A leading hospitality brand aimed to reduce booking cancellations and prevent revenue leakage. The goal was to identify key cancellation drivers and implement targeted retention strategies for high-value customers at risk of canceling.
Solution
- Data-Driven Analysis: Aggregated and cleaned historical booking, cancellation, and customer interaction data from multiple sources, including reservation systems and customer feedback.
- Exploratory Insights: Conducted EDA to uncover key trends—seasonality impact (fewer cancellations in Q3 & Q4), customer segments, and higher cancellation rates in deluxe rooms compared to suites.
- Customer Segmentation & Scoring: Used K-Means clustering to segment bookings based on cancellation trends, demographics, and behaviors. Implemented a rule-based priority scoring system for at-risk bookings, enabling proactive outreach by the operations team.
Impacts
15% Reduction in Cancellations – Within the first two quarters, mitigating significant revenue leakage.
5% Increase in Repeat Bookings – Enhanced retention strategies for high-risk segments led to improved customer loyalty.
