What caused the sudden 20% decrease in online bookings for MGM Resorts International's Las Vegas hotels last month?

Introduction

A sudden 20% decrease in online bookings for MGM Resorts International's Las Vegas hotels last month is a significant issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term and long-term implications for MGM's online booking system and overall business performance.

I'll approach this problem by first clarifying the context, then ruling out external factors before diving deep into product understanding, metric breakdown, and data analysis. From there, I'll form hypotheses, conduct root cause analysis, and propose validation methods and solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal trend. Has this 20% decrease been compared to the same month last year?

Why it matters: Seasonal fluctuations could explain the decrease without indicating a deeper problem. Expected answer: Yes, it has been compared and is still significantly lower. Impact on approach: If seasonal, we'd focus on year-over-year comparisons rather than month-over-month.

• Considering the specificity of the decrease, I'm wondering about recent changes. Have there been any significant updates to the booking system or website in the past 1-2 months?

Why it matters: Recent changes could directly impact user experience and booking rates. Expected answer: A minor UI update was implemented three weeks ago. Impact on approach: If confirmed, we'd prioritize investigating the impact of these changes on user behavior.

• Given the focus on online bookings, I'm curious about offline channels. Has there been any change in bookings through other channels like phone or travel agents?

Why it matters: This helps determine if the issue is specific to online bookings or a broader trend. Expected answer: Other channels have remained stable. Impact on approach: If confirmed, we'd focus exclusively on online booking funnel and user experience.

• Considering potential technical issues, I'm wondering about system performance. Have there been any reported outages or significant slowdowns in the booking system?

Why it matters: Technical issues could directly impact users' ability to complete bookings. Expected answer: No major outages, but some intermittent slowdowns were reported. Impact on approach: If confirmed, we'd prioritize technical performance analysis in our investigation.