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Monthly Archives: December 2014

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Why Modeling Churn is Difficult

December 29, 2014 /
Analytics / Data Science

Customer churn is a really interesting problem. It appears to be a simple calculation, but the more you explore it the more complex it becomes.

Source: blog.kissmetrics.com

For any metric you use to calculate churn, make sure you understand its limitations. The smaller the number of customers you have, the more likely month-to-month churn may appear to move up or down based solely on chance. If you have a large number of customers,…

Read more »

TripAdvisor Gets Punished With A $611.000 Fine in Italy

December 26, 2014 /

The Italian Competition Authority assessed a penalty of 500,000 euros, saying that the company is not doing enough to prevent false reviews on its website.

Source: www.travelweekly.com

The Italian Competition Authority has fined TripAdvisor 500,000 euros (about $610,000), saying that the company is not doing enough to prevent false reviews on its website.


How To Get Better Reviews and Higher Revenues: Sell The Correct Upgrade To The Right Guests

December 22, 2014 /

A recent sponsored report has found a direct link between frontdesk up-selling and both positive reviews and guest satisfaction.

Source: www.tnooz.com

This research found the following results after analyzing 11,000 online property reviews for the resorts.
Guest who selected an offered paid upgrade left reviews with a 4.6 score – compared with 4.7 for those guests who received complimentary upgrades.
When asked about “value for money,” the paid upgrades gave a 4.2 score, which is…

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How to Oversell The right Way

December 22, 2014 /

As we know, overselling (or overbooking) is a technique used in Revenue Management to offset
anticipated cancellations and no-shows (wiki has an article on this subject). In other words, if you
expect 2 cancellations and 1 no-show – you oversell by 3. That’s the optimal behavior that
maximizes revenue. Pretty simple, right?

Source: www.hospitalitynet.org

Most popular mistake that leads to walks is picking the wrong time to overbook. As mentioned above, overbooking is designed…

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A/B-testing Analytics Errors You Must Know

December 22, 2014 /

Keynote by Ton Wesseling – CEO of testing.agency – he shares all the failures he saw and also made himself on analytics and A/B-testing.

Source: www.slideshare.net

Good summary of possible errors you may experience when doing an A/B test into your ecommerce site.


How Airbnb Improved Word-of-Mouth: Making Referrals Work

December 22, 2014 /

Referrals are a frequently used growth tool, but at Airbnb our antiquated referrals system was underutilized and underperforming. It was barely findable on the website and didn’t exist on our mobile apps! I’d like to share with you some tips we used to increase the program’s user signups and bookings by over 300% per day. …

Source: nerds.airbnb.com

Improving referrals embodies growth: it’s highly measurable, scalable, and is all about identifying a growth…

Read more »

Travel Metasearch Players Get a Strong Boost Thanks to New “Rate Parity Clauses”

December 21, 2014 /

Despite contracts between hotel chains and online travel agencies that mandate all distributors get the same room rates as displayed on the hotels’ own web

Source: skift.com

Once travelers realize that the room rate on Expedia may be significantly lower than the one offered on Booking.com, or vice versa, then there would be all the more reason to use a hotel metasearch site to compare all of the available prices at once rather…

Read more »

How Do You Sell a Travel Experience?

December 20, 2014 /
Marketing Online

Three economists explain how it’s different from selling a product.

Source: www.gsb.stanford.edu

Tourism is an “experience good”, where the value of the service is unknown until you use it. Tripadvisor and online reviews make this value more “tangible”, visible and trustable and this increases the chances for the service to be sold.
This funny video, produced by the Stanford University, is useful to remember that the basics of tourism marketing can work even in…

Read more »

How to crack the Booking.com algorithm

December 19, 2014 /

If we want to improve our positioning on Booking.com as rapidly as possible in order to increase sales, it is obvious what needs to be done.

Source: www.tnooz.com

My last article on Tnooz: The algorithm of an OTA is usually a “reflection” of what positively or negatively affects their sales and marketing strategies. In this area the conversion ratio is a reference that allows both comparison between the hotels that are being sold, and…

Read more »

The New Customer Valuation Formula

December 18, 2014 /

New research by Wharton’s Eric Bradlow shows how marketers can track binge-buying behavior to effectively target profitable customers.

Source: knowledge.wharton.upenn.edu

One of the most established practices in the field of marketing and customer valuation is to summarize a customer using what’s called RFM segmentation — recency, frequency, monetary value. You have to add one more letter to RFM, and I call that “C,” which [stands for] clumpiness, which means some customers do buy in a…

Read more »
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