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README.md
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| 1 |
---
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---
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# Hotel Booking Cancellation Analysis
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## Overview
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This project explores hotel booking data in order to understand the main factors that influence booking cancellations.
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The goal is to identify patterns in customer behavior and provide insights into what makes a booking more likely to be canceled.
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## Dataset
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The dataset is based on the "Hotel Booking Demand" dataset from Kaggle.
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It includes over 100,000 observations and features such as:
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- Lead time
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- Hotel type
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- Customer type
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- Average daily rate (ADR)
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- Cancellation status
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The dataset was cleaned and prepared before analysis.
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---
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## Question 1: Do cancellation rates differ between hotel types?
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The results show that city hotels have higher cancellation rates compared to resort hotels.
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This suggests that bookings in city hotels may be less stable, possibly due to differences in customer behavior or booking flexibility.
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---
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## Question 2: Are bookings with longer lead time more likely to be canceled?
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The plot shows that canceled bookings tend to have a higher average lead time.
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This indicates that bookings made further in advance are less certain and more likely to be canceled.
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---
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## Additional Insight: Cancellation rates across lead time ranges
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By grouping lead time into ranges, we can clearly see that cancellation rates increase as lead time increases.
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This confirms that the relationship is consistent and not driven only by extreme values.
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---
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## Question 3: Do repeated guests cancel less?
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Repeated guests show lower cancellation rates compared to first-time guests.
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This suggests that returning customers are more committed and confident in their bookings.
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---
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## Question 4: How does price (ADR) relate to cancellation behavior?
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The distribution shows that higher-priced bookings tend to have greater variability and are slightly more likely to be canceled.
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Outliers were kept in the dataset but handled carefully in the visualization.
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---
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## Data Cleaning & Decisions
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- Duplicate records were identified and removed.
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- Missing values were examined but not all were removed, as some represent meaningful absence of information.
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- Outliers were identified but kept to preserve real-world behavior.
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---
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## Conclusion
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The analysis shows that booking cancellations are influenced by several factors, including lead time, hotel type, customer type, and pricing.
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These insights can help businesses better understand customer behavior and improve decision-making.
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---
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## Data Source
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The dataset used in this project is based on the "Hotel Booking Demand" dataset, originally available on Kaggle.
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The data was cleaned and processed as part of this analysis.
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---
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