Hi, share your knowledge with the community!

How would you approach estimating the number of hotels in a given country (UK or US for example)?

Anonymous A
  • Upvotes
  • Date ascending
  • Date descending
Anonymous B replied on 06/18/2018

Let's consider the example of UK:

Total population of UK - 10 million

Number of tourists visiting UK per year - 36 million (fact)

Tourists could be visiting for work or exploring places. Let domestic tourism for work, medical, family, holiday be 30% of total population - 3 milion.

Total visitors per year - 39 million

For work, visitors must be staying alone in a room, whereas since most of the hotels cater to tourists from outside, they will be residing in pairs of 2 or 3. Let it be 2 persons per room. So that makes it roughly 20 million rooms per year.

On a daily basis, about 55,000 rooms.

An average UK hotel can be assumed to have 3 floors, each floor having 10 rooms. So 30 rooms per hotel.

Assuming that year round occupancy be 60% ( UK being prefered travel destination), so 18 rooms per hotel. (we can also break it seasonly)

so, 91666 / 18 = 5000 hotels in UK

Guennael replied on 06/17/2018
Ex-MBB, Experienced Hire; I will teach you not only the how, but also the why of case interviews

I see 2 main approaches to this:

1. Top down: How many hotels are there in my city + how big is my city? -> how many times more population is there in the US/UK? -> multiply one by the other.

One obvious weakness here is that some cities are much more business / tourism / travel intensive than others

2. Bottom's up: Make assumption about how many people travel for leisure, how many travel for business -> how many nights do they stay every time, how much spare capacity do hotels have to plan (10%? 20%?), how big the average hotel is...

Related BootCamp article(s)

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

9 Comment(s)

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

15 Comment(s)

Related case(s)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 8.0k times
4.4 5 213
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e ... Open whole case

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case


Solved 37.8k times
4.5 5 1113
| Rating: (4.5 / 5.0) |

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitam ... Open whole case

Children vaccine

Solved 35.0k times
4.4 5 1084
| Rating: (4.4 / 5.0) |

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched th ... Open whole case