Question: If you could increase traffic by 10%, how much would revenue increase (assuming the new traffic was of the same character as the current traffic:

If you could increase traffic by 10%, how much would revenue increase (assuming the new traffic was of the same character as the current traffic: same conversion rate, same average nights per booking, etc.)? How many more confirmations would result?

7. If you could increase the percentage of those who reviewed the itinerary from 15.65% to 20%, how would the conversion rate be affected?

8. You believe that if you offered a 10% discount on all bookings, the conversion rate would increase to 3.5%. Would this increase or decrease revenue?

9. Would this be a profitable action if the gross margin on bookings (before the 10% discount) is 50%?

10. Which of the three steps in the conversion funnel do you believe should be improved? Think carefully about the hotel booking process and where Marriott Hotels seems to be performing poorly. Even though the first step has the lowest rate, this might just be the nature of hotel searches (meaning lots of people do searches out of curiosity or advanced planning without any intention of booking).

11. Come up with a promotion for Marriott Hotels. Perform a hypothetical analysis of the effect of this promotion. That is, specify how this promotion would affect this months traffic, conversion rate (include the specific steps), and revenue.

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