Why are customer ratings for Expedia's vacation package deals 20% lower this quarter compared to last?

Introduction

The 20% drop in customer ratings for Expedia's vacation package deals this quarter is a significant issue that requires immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has there been any significant change in the types of vacation packages offered compared to last quarter?

Why it matters: Seasonal variations can greatly impact customer satisfaction. Expected answer: No major changes in package types. Impact on approach: If confirmed, we'll focus on other factors affecting ratings.

• Considering the metric specificity, I'm curious about the rating system. Has there been any recent change in how ratings are collected or calculated?

Why it matters: Changes in rating methodology could explain the drop without reflecting actual customer dissatisfaction. Expected answer: No changes to the rating system. Impact on approach: If changed, we'd need to adjust our analysis to account for the new system.

• Thinking about user segments, I'm wondering if this drop is consistent across all customer types. Do we see any particular group (e.g., families, solo travelers, luxury seekers) showing a more significant decrease in ratings?

Why it matters: Identifying affected segments can help pinpoint specific issues. Expected answer: The drop is relatively uniform across segments. Impact on approach: If certain segments are more affected, we'd focus our investigation on their specific needs and experiences.

• Considering recent updates, have there been any significant changes to the booking process, user interface, or package options in the last quarter?

Why it matters: Recent changes could directly impact user experience and satisfaction. Expected answer: Some minor UI updates were implemented. Impact on approach: If confirmed, we'd investigate how these changes might have affected user satisfaction.