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Part A : Building traveler loyalty is a key strategic factor for a popular vacation rental platform. Several factors can deter repeat bookings, one of which is cancellation by the owner of the property. The data science team observes that 35% of travelers who have not had a reservation cancelled by an owner return to the site for repeat bookings. Travelers with a reservation that WAS cancelled by an owner repeat book at a 20% rate.
If owners cancel 8% of the time, what is the overall repeat booking rate?
Part B : The data science team also seeks to understand the impact on customer loyalty with respect to another type of cancellation: traveler cancellations. The repeat booking rate for owner cancellations is 20%; for traveler cancellations, 28%; and no cancellation, 36%. If the overall repeat booking rate is 34%, and the probability of an owner cancellation is 8%, what is the probability of a traveler cancellation?
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