Research: Providing superior research processes

Making sound decisions, preparing business and strategic plans, defining priorities, interpreting data, evaluating alternatives or preparing prospective estimates—all of these actions are critical and require thorough research using the best data and the best analytical tools. Research can illuminate an issue, sharpen the focus on superior solutions and reveal compelling arguments for action.

Data going back in time (time-series data) and data for portfolios (cross-section data) can provide a wealth of information that may not be apparent without proper data organization and analyses. Powerful analytical tools such as econometrics, statistics and mathematical programming reveal patterns and uncover relationships among different variables (for example, property profitability and brand affiliation). Econometrics and statistical tools reveal which patterns and relationships are statistically significant—not due to chance—and which are random.

These tools transform data into knowledge. By providing distinctive quality research, the PwC Hospitality & Leisure Research team assists senior management, investors, lenders, operators, brand managers, Wall Street analysts, litigators, and product and service providers. The disciplines of economics, statistics and operations research provide the foundation for the framework and design of our research engagements, as well as the tools for data analysis.

If this is your situation

• You need an understanding of future lodging performance indicators across geographies and market segments.
• Market share losses prompt you to seek a comprehensive plan for a new brand/product strategy.
• You seek to understand and focus on key internal and external growth drivers as well as evaluate alternative scenarios of asset portfolio mix performance.

How PwC can help you

From data gathering to reporting of findings, PwC professionals apply best practices developed through years of academic training and specialized hospitality experience to provide:

• Effective data gathering through expert formulation of search strategies, skillful mining/searching of retrieval systems, mastery of survey methods including interviewing techniques and critical evaluation of data sources and providers
• Accurate processing of data and information through summarization, integration, synthesis and data exploratory techniques
• Application of statistical and econometric techniques
• Articulate and concise statement of findings, conclusions and implications for clients

Examples where our research professionals help clients include:

• Consumer and hotel property surveys to assist a global lodging company with a new brand-differentiation strategy
• Product pricing and identification of target market segments to plan a company's entry into new international markets using econometrics and conjoint analysis
• Identification of success attributes of hotel properties using multiple discriminant analyses to guide resource allocation toward investments that are most closely linked to profitability
• Econometric modeling and forecasting to craft a development plan for mid-market and upscale lodging products in the US
• Establishment surveys to measure the size of industries or industry segments in terms of revenues or demand potential and the economic impact on national and regional economies, such as PwC’s pioneering studies for the US spa, timeshare, cruise line and extended-stay hotel industries
• Original or innovative industry studies, including analysis of competitive dynamics among industry participants and identification of the most important drivers of industry performance in many sectors in the hospitality and leisure industry, such as lodging, food and beverage, leisure, travel, timeshare, gaming, spa, cruise line, golf, convention centers and conference centers

Making a difference

PwC specialists introduced the first econometric forecasting model to the lodging industry. The model accurately predicted turning points (beginnings of recoveries or downturns) in industry performance ahead of their actual occurrences and with considerable lead time compared to other analysts’ predictions. Based on original empirical research, we regularly report a 12-quarter forecast on occupancy, ADR and RevPAR for the industry and its segments to subscribers of the research journal PwC Hospitality Directions. These research results created a demand for forecast models—building econometric and time-series models for clients at the property, competitive set, market or segment levels—that assist with budgeting and planning.

Working on a variety of engagements, PwC Hospitality & Leisure Research professionals help clients improve their profitability, market share, strategic direction and visibility in the marketplace. We offer the benefit of hospitality specialists with advanced economics or statistics academic degrees who are skilled in econometric and statistical techniques. Our teams can design the appropriate analytical framework to answer critical research questions that will enhance and accelerate your decision-making processes.