Econometric Modeling
International Hospitality Company

Identify the most profitable allocation of marketing spend across channels given the net increase in revenue from additional rooms sold.


Mather developed an econometric model of incremental room nights attributable to marketing spend by channel.  The models included customer satisfaction, competitive positioning in each market, and brand value.


The analysis was able to measure the relationship between rooms sold through alternative channels and revenue per available room (REVPAR).  Using this result, the project team was able to estimate net incremental revenue from additional marketing spend by channel.  The client used these results to allocate marketing spend across channels.

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