Use the following conversion funnel from a month of traffic on the website of a major hotel chain to solve the questions below. Create an excel spreadsheet to clearly layout all of your work, input your raw data, and calculate your formulas. Be clear in presenting your answers. All answers should have two decimal places and be labelled property (with $ or %) View Rates & Availability Review Itinerary Enter Guest Info Confirm Booking 2,347,892 367,495 103,471 72,498 Revenue Room Nights $23,464,220.00 143,285 1. What is the overall conversion rate? 2. Calculate each micro-conversion rate from one step to the next. % View Rates & Availability Review Itinerary Enter Guest Info Confirm Booking 2,347,892 367,495 103,471 72,498 % % 3. What is the average number of nights per booking? What is the average revenue per booking? 4. What is the average revenue per booking? I 4 Names: 5. If you could increase the percentage of those who reviewed the itinerary to 20% (e.g. the micro-conversion), what would the overall conversion rate be now? 6. Based on your answer above, what would the revenue be now? By how much has it increased/decreased? 7. You believe that if you offered a 10% discount on all bookings, the overall conversion rate would increase to 3.5%. What would the new revenue be? Is this an increase or decrease from the original revenue? 8. **BONUS** If the gross margin on bookings (before the 10% discount) is 50%, would the above scenario generate more profit than the original scenario (e.g. before the 10% discount and under the original conversion rate)? Show your answer by calculating the profit margin for each scenario. (1 mark) Use the following conversion funnel from a month of traffic on the website of a major hotel chain to solve the questions below. Create an excel spreadsheet to clearly layout all of your work, input your raw data, and calculate your formulas. Be clear in presenting your answers. All answers should have two decimal places and be labelled property (with $ or %) View Rates & Availability Review Itinerary Enter Guest Info Confirm Booking 2,347,892 367,495 103,471 72,498 Revenue Room Nights $23,464,220.00 143,285 1. What is the overall conversion rate? 2. Calculate each micro-conversion rate from one step to the next. % View Rates & Availability Review Itinerary Enter Guest Info Confirm Booking 2,347,892 367,495 103,471 72,498 % % 3. What is the average number of nights per booking? What is the average revenue per booking? 4. What is the average revenue per booking? I 4 Names: 5. If you could increase the percentage of those who reviewed the itinerary to 20% (e.g. the micro-conversion), what would the overall conversion rate be now? 6. Based on your answer above, what would the revenue be now? By how much has it increased/decreased? 7. You believe that if you offered a 10% discount on all bookings, the overall conversion rate would increase to 3.5%. What would the new revenue be? Is this an increase or decrease from the original revenue? 8. **BONUS** If the gross margin on bookings (before the 10% discount) is 50%, would the above scenario generate more profit than the original scenario (e.g. before the 10% discount and under the original conversion rate)? Show your answer by calculating the profit margin for each scenario. (1 mark)
