Hotel Promotions: A Hotel Case Study
The CompanyAn international hotel franchisor operating thousands of hotels across multiple brands
The ChallengeThe franchisor was running a limited-time promotion that offered a 10% discount to guests staying two or more nights. To determine the impact of the promotion, the client split the reservations qualifying for the discount into three categories—incremental stays, upsells, and accidental qualifiers. The client needed a reliable way to judge whether the losses from accidental qualifiers were outweighed by the profits from incremental stays and upsells.
The SolutionThe marketing team used APT’s Test & Learn™ software to quantify the true incremental impact of the promotion. Test & Learn analysis showed that profit from incremental stays and upsells offset the losses from accidental qualifiers. Next, they used Test & Learn™ to identify common attributes of hotels that generated the highest returns from the promotion.
The ResultsThe hotel franchisor limited the promotion to hotels that would achieve target lift and ROI, according to APT’s predictive analytics. This targeted approach increased the program’s profitability by $2MM upon rollout.
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