i used population approach to calculate the TAM of hotels in New York City, got almost same answer.
New York City 20M # of travellers to New York 10% 2000000
Type of raveller Business Family Solo Group Travels # of travellers 60% 20% 10% 10% Rentals 0 60% 20% 10% # of rental cutsomers 0.0 240000.0 40000.0 20000.0 TAM 300000.0 Revenue 250 TAM in revenue $75M
Just curious, in this case Ben ended up spending a lot of the time estimating the market size. What is the relevance of that? Is it just to find out the new opportunity is 20% of the current hotel market size?
i used population approach to calculate the TAM of hotels in New York City, got almost same answer.
New York City 20M
# of travellers to New York 10% 2000000
Type of raveller Business Family Solo Group Travels
# of travellers 60% 20% 10% 10%
Rentals 0 60% 20% 10%
# of rental cutsomers 0.0 240000.0 40000.0 20000.0
TAM 300000.0
Revenue 250
TAM in revenue $75M
Great case & solution example. Definitely better than the previous video 😮
Glad you liked it
Just curious, in this case Ben ended up spending a lot of the time estimating the market size. What is the relevance of that? Is it just to find out the new opportunity is 20% of the current hotel market size?