What is Gross Booking?

Gross booking, also known as gross bookings, refers to the total amount of revenue generated by a company for its travel and vacation rental services or products before any deductions or fees such as service fees, cleaning fees, or commissions, are taken out. It is a crucial key performance indicator (KPI) for businesses in the travel and hotel industries, including Booking Holdings.

In the hotel industry, gross bookings refer to the total revenue generated by a hotel or vacation rental property through bookings. This includes the nightly room rate as well as any additional fees for services such as room service or parking. For vacation rentals, gross bookings also encompass additional fees such as cleaning fees.

In the travel industry, gross bookings refer to the total value of bookings made for flights, hotels, tours, and other travel-related services. This includes the cost of the service itself as well as any additional fees or charges. Pre-pandemic levels of gross bookings are often used as a benchmark for companies’ pricing strategies and total revenue.

For companies in the travel and vacation rental industry, gross bookings are a crucial metric that indicates the total amount of revenue generated. This metric is used to measure the success of a company’s pricing strategies and to track the company’s overall performance over time. Gross bookings are also used to forecast future revenue and to make informed business decisions.

In summary, gross booking or gross bookings refer to the total revenue generated by a company for its travel services or vacation rentals before any deductions or fees are taken out. This metric is a key performance indicator that is used to measure a company’s success, forecast future revenue, and make informed business decisions.

What is the difference between net and gross bookings?

Net bookings and gross bookings are both terms used to describe the revenue generated by a business for its products or services. However, there is a key difference between the two.

Gross bookings refer to the total amount of revenue generated by a business for its products or services before any deductions or fees are taken out. This means that gross bookings include all of the money that a customer pays for a product or service, including any taxes or additional fees.

On the other hand, net bookings refer to the revenue generated by a business for its products or services after all deductions and fees have been taken out. This includes any taxes, commissions, transaction fees, or other fees that are associated with the sale of the product or service.

For example, if a customer books a hotel room for $100 per night, and the hotel charges a $10 per night cleaning fee and a 10% tax, the gross booking for that night would be $120. However, the net booking would be less than $120, as the hotel would need to deduct the cleaning fee and tax from the total amount received.

In summary, gross bookings represent the total amount of revenue generated by a business before any deductions or fees are taken out, while net bookings represent the revenue generated after all deductions and fees have been taken into account.

How do you calculate gross booking value?

Calculating gross booking value (GBV) involves adding up the total value of all bookings made for a particular product or service offered by a company. The specific formula for calculating GBV can vary depending on the type of business and the product or service being offered.

In general, the formula for calculating GBV is:

GBV = Number of Bookings x Average Booking Value

The number of bookings refers to the total number of bookings made for a specific product or service over a given period of time, such as a day, week, or month. The average booking value refers to the average price paid per booking.

For example, if a hotel receives 100 bookings for rooms at an average price of $150 per night, the GBV for that period would be:

GBV = 100 bookings x $150 average booking value GBV = $15,000

It’s worth noting that GBV does not take into account any fees, taxes, or other charges associated with the bookings. Therefore, it provides a measure of the total value of bookings made, but not the actual revenue received by the business.

In summary, GBV is calculated by multiplying the total number of bookings by the average booking value. It provides an indication of the total value of bookings made for a specific product or service offered by a company.

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