If there’s one thing that we’ll double down on, it's that one-size-fits-all approaches just don’t deliver the results you’re after.

Instead, you should be focusing on data-informed, flexible strategies that can get your organisation where it wants to be. And this is exactly what we executed for a recent client of ours.

Opportunity

With a rapidly growing estate, the 5-year refurbishment budget of this famous hotelier brand was running into tens of millions.

The refurbishment plan was based on a one-size-fits-all approach, with each room having a standard refurb cost of around £10K. Unsurprisingly, that approach was leading to a huge future level of capital expenditure, and so we looked at a more bespoke approach

Solution

To get a clear understanding of the key drivers behind customer perceptions of room quality, we built an advanced model that looked across the board at important metrics- guest scores, prices paid, stay frequency, range of hotels that guests stayed in. . This allowed us to identify key casual issues for customers, and how the impact for those differed across the whole estate. Once we’d collated the data we needed, it was time to hit phase 2. We were able to create three lighter variants of the room refurbishment plans, which were budgeted at £1.5K, £3K and £9K respectively. After an initial trial, the client was happy to roll out these specifications across its entire estate.

Outcome

This unique approach helped our client:

• Understand key drivers – we used detailed regression analysis on room feature drivers, with a focus on Net Promoter Scores and Net Loyalty
• Map drivers to refurbishment specifications – our tiered refurbishment plan ensured the hotelier spent only what was needed to maintain NPS, Net Loyalty and future bookings
• Analyse post-refurbishment impact – we mapped NPS/NLS against regional clusters, benchmarking trial results to make sure outcomes were consistent

Impact

Our data-driven work delivered a X2 increase in refurbishment capital efficiency. We reduced costs by around 50%.