Project 02 · EDA · Business Analytics

Hotel Booking Analytics:
Revenue Drivers &
Customer Behaviour

A full EDA of 66,541 international bookings for a simulated online travel agency

ContextDreamDest OTA (fictional framing)
Records66,541 bookings
PeriodJanuary 2010 – September 2019
CurrencySingapore Dollar (SGD)
ToolsPython · Pandas · Matplotlib · Seaborn · Plotly
66,541Total bookings analysed
SGD 13.3MTotal revenue (2010–2019)
18.9%Average profit margin
54%Bookings from top 3 markets
15%Discount cap recommendation
The problem

Business Context

DreamDest is a Singapore-based online travel agency facilitating international hotel bookings across Southeast Asia. Despite consistent growth since 2010, leadership raised a critical concern: "We have years of booking data but limited visibility into what's actually driving revenue and profit." This analysis was commissioned to answer five stakeholder questions across Marketing, Finance, Product, and Partnerships.

Marketing & Sales

Which origin markets and destinations drive the most bookings and revenue?

Product & CX

What does the typical DreamDest customer look like by age, gender, and behaviour?

Executive Leadership

How have bookings and revenue trended over time, and when did growth accelerate?

Finance

What is the relationship between discount levels and profit margins?

Partnerships

Which hotel ratings and stay durations are most associated with higher revenue per booking?

The analysis

Charts & Findings

Seven purpose-built charts covering markets, demographics, trends, discount strategy, and hotel quality, each tied directly to a business question.

Chart 01
Origin Market Performance, Bookings & Revenue
Which origin markets drive the most volume, and is there a revenue quality difference between them?
Finding: Thailand, Malaysia, and Singapore are the top three origin markets, collectively accounting for over 54% of all 66,541 bookings. However, average booking values are remarkably consistent across all markets (SGD ~200), meaning volume, not price premium, is the key differentiator. Retaining Thailand and Malaysia customers through loyalty programmes would have the single highest impact on total revenue.
Chart 02
Revenue by Customer Age Group
Which age segment is the most valuable to the business, and should marketing be skewed toward them?
Finding: The 46–60 age group generates the highest average booking value of all segments, making them the most valuable customer cohort. The 31–45 group drives the highest booking volume. Younger travellers (18–30) book more frequently but at lower average values. Premium product positioning and targeted offers for the 46–60 segment represent the highest-margin growth opportunity.
Chart 03
Booking Volume & Revenue Trend (2010–2019)
Has growth been consistent, and when did the business shift into a higher gear?
Finding: Bookings grew consistently year-on-year from 2010 through 2019, with a notable acceleration from 2016 onward. Revenue tracked closely with volume throughout, confirming that average booking values have remained stable rather than declining under promotional pressure. The post-2016 acceleration warrants investigation into which marketing channels or product changes triggered it, the data suggests a structural shift, not just organic growth.
Chart 04
Booking Seasonality, Average Monthly Volume
Which months are the booking troughs, and when should promotional activity be concentrated?
!
Finding: February, June, and November are the three consistent booking troughs across the 2010–2019 period. December and July–August are the peak months, driven by school holidays and festive travel. These three low-volume months are the ideal windows for flash promotions, price incentives, and targeted email campaigns to stimulate demand without cannibalising peak-season revenue.
Chart 05
Discount Level vs. Profit Margin
At what discount threshold does profitability begin to materially erode?
!
Finding, the most financially significant result of this project: Discounts above 15% measurably erode profit margins, with the effect becoming nonlinear above 20%. Bookings with 0–10% discounts maintain an average margin of ~22%. At 20%+, margins fall to approximately 14–15%. A hard discount cap of 15% for standard campaigns is recommended to protect margin while remaining competitive. Discounts above 15% should require Finance sign-off.
Chart 06
Hotel Rating vs. Average Revenue per Booking
Do higher-rated hotels generate meaningfully higher booking values, justifying a premium partnership strategy?
Finding: Hotels rated 4.5 and above are associated with higher average revenue per booking and attract customers with higher repeat intent. The revenue uplift from 4.0 to 4.5+ rated properties is consistent across all origin markets. DreamDest's supply partnerships should prioritise 4.5+ rated properties, they command higher prices, attract the valuable 46–60 segment, and support a premium brand positioning that justifies the discount cap recommendation.
Chart 07
Top & Underperforming Destinations by Booking Volume
Where are customers going, and which destinations represent untapped growth opportunity?
Finding: Southeast Asian destinations dominate the top of the ranking, consistent with DreamDest's origin market base. However, Iran, Kenya, Brazil, and Japan significantly underperform relative to their regional tourism potential. This underperformance may reflect gaps in local marketing, pricing misalignment, or limited hotel supply partnerships. A targeted destination growth programme for these four markets could meaningfully diversify the revenue base.
Results

6 Key Findings

01

Three Markets Drive 54% of All Bookings

Thailand · Malaysia · Singapore Top 3 origin markets by volume

All seven markets show similar average booking values (~SGD 200), meaning volume retention, not price premiums, is the primary revenue lever. Loyalty programmes targeting these three markets have the highest ROI.

02

The 46–60 Age Group Is the Most Valuable Segment

Highest avg booking value Across all age bands (18–30, 31–45, 46–60, 60+)

Premium product positioning and targeted campaigns for the 46–60 segment represent the highest-margin growth opportunity, they book higher-rated hotels, stay longer, and spend more per trip.

03

Consistent YoY Growth with Acceleration Post-2016

10 years Unbroken booking growth (2010–2019)

Revenue tracked volume consistently, average booking values held stable, confirming promotions did not erode unit economics during the growth period. The post-2016 shift warrants attribution analysis.

04

Discounts Above 15% Erode Margins Measurably

~22% → ~15% Avg profit margin: 0–10% discount vs 20%+ discount

The margin deterioration is nonlinear, small discounts up to 10% have minimal impact, but the 15% threshold is where margin compression becomes material. A hard cap is the clearest policy response.

05

Feb, Jun & Nov Are Consistent Booking Troughs

3 months Reliable low-volume windows every year 2010–2019

The seasonal pattern is remarkably stable across all 10 years. These windows are ideal for promotional campaigns that stimulate demand without competing with peak-season organic volume.

06

4.5+ Rated Hotels Drive Higher Revenue per Booking

4.5+ Hotel rating threshold for premium revenue effect

Premium hotel partnerships are not just a brand decision, they are a revenue decision. 4.5+ rated properties consistently outperform on per-booking revenue and attract the highest-value customer segment.

So what?

Business Recommendations

01

Launch a loyalty programme targeting Thailand and Malaysia customers

These two markets alone account for ~36% of all bookings with consistent average revenue per booking. A points-based loyalty scheme with tier benefits for repeat bookers would reduce churn in DreamDest's two most critical markets. Even a 5% improvement in repeat booking rate from these markets would add approximately SGD 240K in annual revenue at current booking values.

→ Marketing & CRM
02

Build a premium product tier targeting the 46–60 age segment

This segment already self-selects toward higher-rated hotels and longer stays, they're the most valuable cohort without any additional intervention. A curated "Premium Escapes" product category featuring 4.5+ rated properties with concierge-style service would formalise this and allow premium pricing, directly improving overall margins.

→ Product & Marketing
03

Implement a 15% discount cap with Finance sign-off above the threshold

The data is unambiguous: discounts above 15% erode margins nonlinearly. A hard cap for standard campaigns, with a Finance approval gate for exceptions, would protect the 18.9% average margin that characterises healthy bookings. The cap should be encoded in the promotional approval workflow, not left to campaign managers' discretion.

→ Finance & Revenue Management
04

Run targeted flash promotions in February, June, and November

These three months represent reliable demand troughs with no competing peak-season volume to protect. Time-limited promotions (72-hour flash sales, early-bird offers for school holiday periods) targeted at the 31–45 high-volume segment in the top three origin markets would fill the booking gap without margin risk during peak months.

→ Marketing & Partnerships
05

Prioritise 4.5+ hotel supply partnerships and investigate underperforming destinations

Premium hotel partnerships drive both higher booking values and better customer retention. Simultaneously, Iran, Kenya, Brazil, and Japan are underperforming relative to their tourism market size, a targeted supply and marketing effort in these four destinations could meaningfully diversify revenue without cannibalising the core Southeast Asian base.

→ Partnerships & Supply
Skills demonstrated

What This Project Shows

Skill AreaSpecific Techniques Used
EDA Structure9-stage analysis framework from business problem definition through to stakeholder recommendations
Feature EngineeringDate parsing, age banding, revenue/profit calculation, stay duration derivation from 24-column raw dataset
Statistical AnalysisMargin vs discount nonlinear relationship, segment revenue comparison, YoY growth decomposition
VisualisationMatplotlib/Seaborn bar charts, time series, distribution histograms; Plotly interactive world map
Business FramingAll findings mapped to specific stakeholders (Marketing, Finance, Product, Partnerships, Executive)
Data StorytellingFinding-first structure with quantified evidence and specific, actionable recommendations per insight