SENSING | Establishing transparency on consumer and competitor bune trends is key to evaluating “where to play” Sensing creates insight on market and … which are prerequisites for targeted growth spaces along 3 dimensions … selection of defense and offense moves 1 Understanding of demand spaces and Reframes market and competitor Case example market dynamics viewthrough consumer lens Global hotel chain leverages BCG Insight into own and competitors’ demand sensing forecast (DSF) to 2 positions improve accuracy, model adoption, Enables data-driven decisions and transparency about where to compete Updated model with new data: Sizing and prioritization based on 3 opportunity and advantage • Property clustering • Market demand data • Airline traffic using powerful ML algorithm Creates growth mindset tailored to each property BCG DSF improved accuracy Demand maps identify by 37%1 demand spaces. For each 37% space, detailed profiles Derives agile test and learn show, e.g., consumer needs, initiatives to respond to volatility competitors, and value BCG DSF Prev Fcst 1. Difference in error relative to capacity Source: BCG case example, BCG Lighthouse