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README.md
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---
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language:
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- en
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pretty_name: "Hotel Booking Cancellation Analysis"
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tags:
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- tabular
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- classification
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- exploratory-data-analysis
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- pandas
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license: "cc-by-4.0"
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task_categories:
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- classification
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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 better understand customer behavior, with a focus on cancellations.
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The goal is to identify patterns that may help hotels predict and reduce cancellation rates.
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The dataset was taken from Kaggle and then cleaned, processed, and analyzed using Python.
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---
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## Data Cleaning
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Before starting the analysis, several cleaning steps were performed:
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- Checked for missing values across all columns
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- Verified and removed duplicate rows
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- Reviewed data types and ensured consistency
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- Explored summary statistics to understand distributions
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Outliers were identified in variables such as lead time and average daily rate (ADR).
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Instead of removing them completely, I chose to keep most of them, since they may represent real customer behavior (e.g., very early bookings or luxury pricing).
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However, in some visualizations, extreme values were limited to improve readability.
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---
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## Question 1: Do cancellation rates differ between city hotels and resort hotels?
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City hotels show a higher cancellation rate compared to resort hotels.
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This suggests that bookings in city hotels may be more flexible or less certain.
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In contrast, resort bookings are typically planned further in advance and are more stable.
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---
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## Question 2: Are bookings with a longer lead time more likely to be canceled?
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Bookings that were eventually canceled tend to have a higher average lead time.
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This indicates that customers who book far in advance are more likely to change their plans.
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However, this is a general trend and not a strict rule.
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---
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## Additional Insight: How does cancellation rate change across lead time ranges?
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When dividing lead time into ranges, a clear pattern appears:
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The longer the lead time, the higher the cancellation rate.
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This adds depth to the previous analysis by showing that the relationship is gradual, not just based on averages.
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---
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## Question 3: Do repeated guests cancel less than first-time guests?
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Repeated guests have a noticeably lower cancellation rate.
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This suggests that returning customers are more confident and committed to their bookings.
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---
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## Question 4: How does average daily rate (ADR) relate to cancellation behavior?
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Higher-priced bookings tend to have slightly higher cancellation rates.
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This may indicate that customers are more sensitive when prices are higher, or that these bookings are compared more carefully with alternatives.
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---
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## Key Insights
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- Cancellation is strongly influenced by lead time
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- Returning customers are more reliable than new ones
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- City hotels experience more cancellations than resort hotels
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- Price may play a role in customer decision-making
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Overall, customer behavior is not random.
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It is influenced by timing, experience, and pricing factors.
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---
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## Business Recommendations
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Based on the analysis:
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- Encourage shorter lead time bookings to reduce cancellations
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- Offer incentives for returning customers
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- Apply stricter cancellation policies for long-term bookings
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- Monitor pricing strategies for high-value bookings
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These actions can help hotels improve planning and reduce uncertainty.
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---
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## Dataset Source
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The original dataset was taken from Kaggle:
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"Hotel Booking Demand Dataset"
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The data was modified, cleaned, and analyzed for educational purposes.
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---
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