Leisure Industry
Our client isa major company in the vacation exchange/timeshare business and needed help maximizing the occupancy of its inventory. The company has approximately three million members who use this service to expand their vacation investment. They do this by depositing and requesting vacation weeks at 3,700 resorts around the world.
Timeshare exchanges are made through a point system that relies in part on supply, demand, and utilization. Success in this business depends on the ability to accurately predict demand, supply and utilization for each resort for each week up to two years into the future.
The sophisticated statistical analysis necessary to successfully predict to this level of detail. The technique uses a specialized set of statistical methods geared to predicting time series data - namely ARIMA (Auto-Regressive Integrated Moving Average models), Spectral Analysis, and Recurrent Neural Networks. This type of analysis also requires a highly specialized analytical data mart (database).
Implementation of this analytical process enabled the company to increase inventory occupancy from 75% to just over 90%. This process improved service levels and significantly increasing company revenues. The company is now the world's leading vacation exchange/timeshare operator.
