A Study of Hot el Occupancy : Using Multiple Linear Regression  and Market Strategy Analysis

Abstract: This paper is based on collaboration between a company called StayAt HotelApart AB and two KTH students. It examines which factors that are influencing the hotel’s occupancy and how this may be increased by enhancing the market strategy. The aim is to provide a foundation for strategy development to the company. The study is performed by connecting applied mathematics with industrial management. The mathematical part is based on a multiple linear regression on occupancy with historical data from 2011 to 2016 mainly collected from StayAt.  The analysis of the market strategy is performed by means of the mathematical results and by using two marketing models, SWOT analysis and 4P’s. The result shows that relative price, weather, high- and low season for the hotel, months on market, occupancy for the competitive set, location and market shares are significant factors influencing the hotel’s occupancy. The main recommendations concluded from the analysis of the market strategy are to put effort on digitalisation, visualising the brand, publications, CSR initiatives, exploiting existing resources and carefully considering timing of marketing.