Publication in conference proceedings Q3
Using customer segmentation to build a hybrid recommendation model
Pedro Camacho (Camacho, P.); Ana de Almeida (Almeida, A. de.); Nuno António (António, N.);
Advances in Tourism, Technology and Systems. Smart Innovation, Systems and Technologies
Year (definitive publication)
2020
Language
English
Country
Singapore
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Abstract
The growing trend in leisure tourism has been closely followed by the number of hospitality services. Nowadays, customers are more sophisticated and demand a personalized and simplified experience, which is commonly achieved through the use of technological means for anticipating customer behavior. Thus, the ability to predict a customer’s willingness to buy is also a growing trend in hospitality businesses to reach more customers and consolidate existing ones. The acquisition of a transfer service through website reservation generates data that can be used to perform customer segmentation and enable recommendations for other products or services to a customer, like recreation experiences. This work uses data from a Portuguese private transfer company to understand how its private transfer business customers can be segmented and how to predict their behavior to enhance services cross-selling. Information extracted from the data acquired with the private transfer reservations is used to train a model to predict customer willingness to buy, and based on it, offer leisure services to customers. For that, a hybrid classifier was trained to offer recommendations to a customer when he/she is booking a transfer. The model employs a two-phase process: first, a binary classifier asserts if the customer who’s buying the transfer would eventually buy a service experience. In that case, a multi-class model decides what should be the most likely experience to be recommended.
Acknowledgements
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Keywords
Hospitality,Transfers,Customer segmentation,Recommendation system
  • Mathematics - Natural Sciences
  • Computer and Information Sciences - Natural Sciences
  • Other Social Sciences - Social Sciences
Funding Records
Funding Reference Funding Entity
UIDB/04466/2020 Fundação para a Ciência e a Tecnologia

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