A Global Hotel Chain Gains Insight into Outcomes of Property Expansion with WNS' Impact Analysis Model

The Client

One of the world's leading multi-brand hotel chains.

The Challenge

The client had launched a new property in the vicinity of one of its existing properties, operating under a different brand name. The client needed to evaluate the risks and opportunities that the new property could encounter in the near future.

The WNS Solution

WNS' team of travel domain experts and analysts hypothesized that these risks and opportunities could be identified by assessing the impact of the new launch and developed a two-step analytical approach:

• Step 1: Evaluated the local competitive landscape by:

  • Identifying a group of competing properties

  • Assessing the growth rates of competing properties across a range of target-market categories, based on scale, meal plan, duration of stay and brand

  • Measuring the rate of change in three important metrics such as Revenue Per Available Room (RevPar), room Revenue Growth Index (RGI) and Occupancy Rate for competing properties

• Step 2: Evaluated the impact of the new launch on the local competitive landscape by:

  • Identifying a common set of variables

  • Deploying its proprietary impact analysis model based on the pooled regression technique to gather and analyze the relationship among the common set of variables

  • Analyzing the rate of change in RevPar, RGI and Occupancy Rate over a period of 36 months, for each competing property, according to three timelines basis the launch date

  • Determining the duration of the impact following the launch

Insights Delivered

WNS' impact analysis model accurately determined the exact percentage change in RGI for the client's existing property in the initial 12 months and the continued RGI percentage impact for the next 12 months.