… for cross-selling hospitality services

Hotel

Business Challenge

  • A hotel chain wanted to identify customers  (among a few million registered customers) who could be targeted using a marketing campaign for a holiday package.

Analytics Approach

  • Representative sample of customers was used for developing and validating a logistic regression model, developed to predict response to a marketing campaign based on historical response data
  • More than 100 transactional, demographic and response variables were used to predict response
  • The variables that were effective in prediction included: Tenure, price of last package, supplements during last holiday, lack of infants in holiday group

Impact

  • The top 3 deciles captured more than 60% of the responsive customers
  • The marketing campaigns were targeted at these customers

Propensity to buy- hospitality services