Analyst Project

Online Hotel Web Search - Analysis Report



Introduction

You are a candidate who wants to apply for the position of data analyst in the Marketplace team of company X. You need to present a comprehensive analysis of Website X's performance and its collaboration with advertisers A, B, and C. your main tasks arre explore Market Trends and Advertiser Performance, leading to strategic recommendations for Website X's future success. This analysis aims to help Website X maintain and enhance its market position.


For cleaning steps, you can access my github.

1.Market Trend

Overall:

  1. Website X has received approximately 29 million bookings.
  2. The total revenue generated by Website X is an impressive $4.46 billion, thanks to the support of three key advertisers: A, B, and C.

Market Trend:

The majority of Website X's customers fall into the "Short" Segment, accounting for over 66% of the total customer base. These customers prefer booking hotel rooms within 0-14 days before their travel dates.

Customer booking behavior closely follows seasonal trends. Notably, there is a surge in bookings during the peak travel seasons of Summer and Autumn.

  1. June, July, and August contribute to approximately 40% of the total bookings in a year. Additionally, the conversion rates during these months consistently exceed 0.41, indicating high customer engagement and successful bookings.
  2. In contrast, Spring and Winter months receive relatively less attention from customers, with only about 5% of bookings occurring monthly. The conversion rates during these periods are also lower, as people tend to prefer staying home rather than traveling.

This information provides valuable insights into the booking patterns and preferences of Website X's customers, enabling better decision-making and marketing strategies.


2.Advertiser Performance

Overall Performance

  1. Advertiser A stands out as the top performer, successfully targeting both the "Short" and "Medium" customer segments. Their advertising efforts resulted in approximately 15 million bookings, translating to over $0.3 billion in profit.
  2. Company C adopted a focused approach by concentrating on the "Long" customer segment, achieving substantial profits of around $60 million in this segment. Company C also maintained a balanced presence in the "Short" and "Medium" segments.
  3. Advertiser B's performance lags behind, ranking second in terms of total profit within the "Short" customer group but generating only $0.1 billion in total profit. Their advertising strategy appeared less clear and effective compared to A and C

Conversion Rates

Advertisers A and C consistently maintained higher conversion rates compared to Advertiser B. This signifies the effectiveness of the advertising efforts of A and C in terms of attracting clicks and generating bookings.


Profit Over Cost Strategy:

Examining the "Profit Over Cost" graph reveals the distinct strategies of A and C:

  1. Company A adopted a balanced approach, targeting various customer segments effectively.
  2. Company C strategically focused on specific customer segments based on trending preferences, leading to their success in the "Long" segment.

In contrast, Company B's strategy appears less focused and successful, as their approach does not seem to align with the specific needs and preferences of customer segments.

In conclusion, Advertisers A and C demonstrate more effective strategies, achieving higher conversion rates and profit margins, while Advertiser B could benefit from a more targeted and refined approach in their advertising efforts. This analysis helps identify areas for improvement and optimization in the advertising strategies of these companies.


Conclusion

Performance Evaluation:

  1. Website X has shown strong cooperation with Advertisers A and C, demonstrating an understanding of the local market, clear strategies tailored to different customer segments, and a significant contribution to Website X's total revenue, accounting for over 80% of the total revenue.
  2. In contrast, Advertiser B has been underperformed. They have struggled to meet customer demands, and their advertising strategy lacks clarity.

🚩Recommendations for Website X:
  1. Focus on Quality Advertisers: Continue to strengthen partnerships with high-performing Advertisers A and C, as their strategies have proven effective in driving revenue and customer engagement.
  2. Reevaluate Cooperation with Company B: If Company B wishes to continue as a partner, Website X should encourage them to improve their planning for the upcoming year. This involves enhancing the quality of their content, updating their knowledge, and refining their advertising strategies to better align with customer needs and expectations.

By following these recommendations, Website X can maintain and further enhance its performance by working closely with Advertisers A and C while also considering the potential for improvement with Company B. This approach will help Website X continue to thrive in the local market.