A globally leading hotel chain needed to evaluate the risks and opportunities that its newly-launched property could encounter, since it was in the vicinity of another existing property
WNS deployed its proprietary impact analysis model, which accurately assessed the impact of the launch over a period of 36 months
One of the world's leading multi-brand hotel chains.
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.
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
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.
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Travel and Leisure
24 November 2015
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