Abstract
Nicolas Dupont, the owner of Chateau de Montana, a struggling (and old) boutique hotel in Crans-Montana Ski Resort, Switzerland, wished to renovate and reposition his family-owned hotel to target higher room rates. Dupont commissioned Olga Mitireva and Yulia Belopilskaya as consultants to assess the proposition. The consultants had to extract cues for the room rate of the repositioned hotel from comparable hotels. However, the room rates varied significantly across similar hotels due to their differing characteristics and locations. It was a cognitive challenge to read the patterns from a few comparable hotels. They collected the data of 200 hotels from similar locations and simulated room prices using hedonic regression models.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | F&A0567 |
| Title | Chateau de Montana: Applying Data Analytics to Simulate Room Price of a Repositioned Hotel |
| Pages | 11 |
| Published on | Nov 2, 2022 |
| Year of Event | 2018 |
| Authors | Das, Prashant; |
| Area | Finance and Accounting (F&A) |
| Discipline | Economics, Finance, Marketing, Quantitative Methods, Strategic Management |
| Sector | Banking Finance Insurance (BFI), Infrastructure |
| Learning Objective | The case aims to: Introduce hotel market key performance indicators (KPI) Apply multiple regression modelling in a real-world context Sensitize students about hedonic modelling Illustrate how regression modelling is applied to price products with heterogeneous attributes |
| Keywords | Pricing; Regression; Analytics; Data Science; Real Estate; Hotel |
| Country | Switzerland |
| City | Crans-Montana |
| Access | For All |
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