Market Equations India offers Data Analytics and Modeling services to organizations in the Travel and Hospitality industry providing them a framework for data driven decision making and maximizing the value of every customer interaction.
We help organizations use relevant quantitative analysis (e.g. predictive modeling, data mining, etc.) to collaborate and build appropriate models that provide actionable insight (e.g. new customer acquisition through inbound marketing strategies, enhanced campaign response rates, better cross-sell strategies, effective segmentation, yield management including effective pricing and inventory strategies, product differentiation strategies, improving customer service strategies etc.) to make informed decisions to achieve desired business outcomes.
Market Equations helps organizations in the Travel and Hospitality industry address a wide range of questions including:
- Who are your loyal customers? How well do you know them and can you segment them as most profitable?
- Are my service levels directly impacting loyalty? How do you improve services levels?
- How effective are your promotions and how do I measure its contribution to sales enhancements?
- How can you maximize and measure your returns from my marketing investments?
- How do you optimize your pricing strategy and maximize your returns?
- do you plan to accommodate sudden changes in demand impacting revenue due to seasonality etc?
Our Data Analytics and Modeling solutions for the Travel and Hospitality industry include:
Response Modeling combines guest demographics, behavior and preferences along with past history of customer's behavior to predict the propensity of prospects to respond to different promotional offers, likelihood of their behavior in future, and their life time value. It helps understand the answers to the following questions
- How can I prioritize whom to target?
- Which prospects will respond to this campaign?
- How can I acquire more customers who look like my best customers?
- How do I optimize my campaign dollars by focusing on the right prospects?
Deeper Guest Knowledge through Effective Segmentation
Segmentation solutions help clients differentiate between customer segments based on their needs, attitudes, behaviors and demographics in ways useful for marketing.
Segmentation allows marketers to answer the following questions:
- What are my distinct guest segments? What are their needs, brand attitudes and behavior?
- How can I compare the characteristics of different segments to determine segment-specific actions?
- What is the profitability and channel usage of each of my guest segments?
Analytics can also be used to identify new segments of customers with needs distinct from existing customers- or to derive deeper insights into existing segments.
Analytical techniques like Recency, Frequency, and Monetary Value (RFM) Analysis (using guest history data) and Basket Analysis are used as starting points to assess customer lifetime value and help estimate the profitability and revenue potential of segments. Marketers use segmentation not only to attract guests, but to provide personalized service based on their needs and preferences.
Maximize Guest Value through Effective Cross Sell Strategies
Cross selling is one of the quickest ways to deliver profitable growth. Cross-selling helps maximize guest value by effectively marketing additional products and services to customers. Profiles of common customer behavior patterns can be created through analysis of guest demographics, preferences and other significant variables. Then, by comparing new customers to these profiles, cross-sell solutions can predict which guests are likely to follow the same paths.
- Analyze - Analyze Guest attributes, preferences, purchase
- Profile - Create profiles of common guest behavior patterns
- Predict - Compare new guests to these profiles to predict likely paths
- Target - Model, Prioritize, Personalize, Optimize, Interact
Cross-sell solutions helps travel marketers answer questions such as:
- Which of my guest are good candidates for cross-selling?
- Which products or services are most appropriate?
- What is the best time and channel to make an offer?
- How can I precisely target my cross-sell offers to reduce the possibility of customer fatigue?
Maximize Revenue through Yield Management
Yield management maximizes profits from the sale of perishable assets such as hotel rooms or airline seats by controlling price and inventory and differentiating product and service. Unique customer segments, based on behavior, price sensitivity, usage pattern, etc are identified. Appropriate products are then created along with targeted price and service levels. To maximize the revenue from existing inventory, Yield Management solutions utilize analytics to predict the demand and booking patterns from each of these segments of customers. It allows service providers to plan for lean periods and maximize their revenues by attracting customers who are likely to respond in low traffic seasons.
- Segment - Define Segments based on behavior, usage, price
- Offer - Create Seasonal pricing calendars & targeted pricing
- Forecast - Forecast demand based on trends, seasonal patterns, market
- Plan - Allocate capacity to various segments to maximize revenue
Yield Management solutions helps travel marketers answer questions such as:
- What is the expected demand from various customer segments?
- How do I price the inventory (of seats, rooms, etc.) to maximize my revenue?
- How will I reserve my inventory to my most valuable customers?
- How can I use pricing as a tool to enhance my revenues, in a scientific manner?