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KPI for Measuring of Ratio of Agent Bookings versus direct bookings posted in category Hotels

WinningKPI - Hotels - KPI for Measuring of Ratio of Agent Bookings versus direct bookings posted in category Hotels

KPI details:

This KPI with this visual info-graphic is included in Hotel KPIs pack.
Details:

This indicator is for measuring the ratio between agent bookings compared to direct bookings. This is calculated by divided the higher number of bookings by the lower one, or by comparing percentages.

The management team may use this KPI to identify which source of bookings is more common for their hotel, thus which one brings more profit.

Based on this KPI, the hotel management may choose to put more efforts into securing agent bookings, or, in the contrary case, focus on linking the hotel with direct booking channels (e.g. booking websites such as booking.com, laterooms.com etc).

However, this indicator can be misleading as it does not look at the size of direct bookings. The ratio could be 1:2 (2 agent bookings per every direct booking), but the direct booking may have a higher value than the 2 agent bookings.

Formula:

Total number of agent bookings / total number of direct bookings

Or

Total number of agent bookings / total number of bookings x 100

Total number of direct bookings/total number of bookings x 100

KPI Units: Ratio or %

KPI Time Frame: update quarterly or annually

Posted by KPI Expert | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

As mentioned in the description above, this ratio is useful but only offers a brief ratio, without taking into consideration order size.

For instance, if a hotel measures this ratio over a month and the numbers are:

Agent bookings: 100

Direct bookings: 400

The ratio will be 1:4, where per every 1 agent booking, the hotel receives a total of 4 direct bookings.

However, let us take for example the following details for the bookings:

Agent bookings: 100 group bookings (10+ people) of a total of $120 000

Direct bookings: 400 of individual bookings (max 3 people) of a total of $90 000

Therefore, even if the bookings ratio may seem higher, the booking size/booking price can be different.

KPI Expert | September 8, 2012 at 9:32 am

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