For hoteliers, monitoring room nights and revenue received from different OTAs (Online Travel Agencies) is crucial for understanding booking trends and optimizing business strategies. Knowing which OTA drives the most revenue helps in better rate management and marketing investments.
How Are Room Nights and Revenue Calculated?
- Room Nights = Number of Rooms Booked × Number of Nights Stayed
Example: If a guest books 2 rooms for 3 nights, total room nights = 2 × 3 = 6.
- Revenue = Total Earnings from Bookings (After OTA Commissions)
Example: If a hotel earns $200 per night and sells 5 rooms via an OTA, total revenue = 5 × $200 = $1,000 (before deducting commission).
Why Should Hoteliers Track OTA Revenue & Bookings?
- dentify High-Performing OTAs – Helps focus on platforms that bring the most bookings and revenue.
- Optimize Pricing & Inventory – Ensures competitive pricing and balanced room distribution.
- Control Commission Costs – Helps in evaluating if an OTA’s commission is justified by the revenue it generates.
- Plan Effective Marketing Strategies – Guides hotels in investing in promotions on the best-performing OTAs.
By analyzing OTA-wise revenue and room nights, hoteliers can make informed decisions, boost profitability, and enhance overall business performance.