caseism

Logistic Regression Case Solution & Answer

Logistic Regression Case Solution

Introduction

The hotel industry is prone to a significant number of bookings call-offs, which are not realized due to different reasons including scheduling conflicts, natural disasters, sudden family obligations, change in plans and illness etc. This option of cancelling a booking is very convenient for the guests, as the cancellations are usually offered by the hotel industry at low cost or sometimes even free of charge. But this situation is snot beneficial for the firms operating in the hotel industry. The cancellations are not desirable for the hotels, as such cancelations involve diminishing revenue factor. Not only this, the cancellations carried out by the guests on the very last moments involve high losses for the hotels.

In addition, the technological advancement has offered possibilities to get the bookings through online channels, as a result of which a greater change in the behavior, style and preferences of the customers have been observed. The online booking channels have further created challenges for the hotels in managing the cancellations, as the booking process is not anymore limited to the traditional customer characteristics and booking behavior.

Furthermore, the hotels are significantly impacted by the cancellations of bookings, through different ways. First of all, due to cancelations; the hotels are not able to resell the room, as a result of which the hotels face a loss in their revenue and resources. Secondly, the hotel has to bear an additional distribution based expenses, in order to generate publicity and ultimately bookings for the hotel. Thirdly, to resell a room, the hotels have to lower the prices at last, which ultimately reduces the overall profit margin. Lastly, the human resources are impacted in a way that they are left with no other choice but to make new arrangements for the guests, after cancellation of a booking.

Problem Statement

The Star Hotel Group is facing a severe problem of booking cancellations, as a result of which, the company is facing difficulties in generating profits. The company needs to determine the probability of bookings in order to remain proactive by taking new bookings according to the predictions. The company wants a machine learning based solution in order to get accurate predictions about the number of booking cancellations. This would help the company in formulating appropriate profit policies for refunds and booking cancellations.

Objective

The main objective of the research is to devise out a machine learning based solution, for predicting the accuracy in number of bookings, likely to be cancelled.

Research Questions

The research questions addressed in the study is as follows:

  • Whether a booking would likely to be canceled or not?

Methodology

In order to determine whether a booking is likely to be cancelled or not;a quantitative analysis has been performed on the data provided by the Star Hotel Group. The quantitative data analysis includes the linear regression model including the uni-variate and the bivariate analysis, which has been performed in order to determine whether a booking would be cancelled by the customer or not, based on the machine earning based solution……………………..

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

 

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY