Hospitality. Performance. Value.
A full hotel. At what cost?
Occupancy tells you how much of the property is sold. The commercial question also includes the value of those bookings, the cost of acquiring them and the cost of serving them.
Count what the campaign leaves behind.
Agree the reporting period and the revenue basis with the revenue team. Separate booked revenue from completed stays. Include the costs that belong in the comparison and make the missing costs visible. A channel can deliver bookings while contributing less value than its headline figures suggest.
Revenue
Completed stays
Delivery
Variable costs
Acquisition
Fees and campaigns
Contribution
After the listed costs
Put the thinking to work
What remains after the listed costs
Use one reporting period and one currency. Enter realised room revenue excluding taxes, after cancellations and refunds. Include media, attributable production and agency costs in campaign costs. The result excludes fixed costs and any costs you have not entered. It is contribution, not accounting profit or proof that the campaign caused the bookings.
A situation worth examining
Before moving budget, compare the same stay periods, room types and markets. A strong week for bookings may reflect existing demand, a change in availability or an offer. Use a planned test to examine what the campaign added.