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Case Study – Leisure Industry
Our client, a major company in the vacation exchange/timeshare business 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 globe.
The way timeshare exchanges are made is through a point system that in part relies on supply, demand, and utilization. The success of the business hinges on the ability to accurately predict demand, supply and utilization for each resort for each week up to two years into the future.
The statistical analysis necessary to successfully predict to this level of detail is highly sophisticated. 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. It also requires the creation of a highly specialized analytical data mart (database).
The adoption of this analytical process enabled the company to increase inventory occupancy from 75% to just over 90%. Clearly providing enhanced levels of service for its customers and significantly increasing company revenues. The company is now the world's leading vacation exchange/timeshare operator.
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