DiBPAR: the Vital Hotel Performance Metric You’ve Never Heard Of​

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In  an  industry  transformed  by  the  meteoric  growth  of  online  travel  agents  and  the  Direct 
Booking  Movement  that  sprang  up  in  response,  Revenue  per  Available  Room  (RevPAR)  is  no 
longer enough as a performance metric.


We’ve  seen  plenty  of  hotels  tracking  their  efforts  to  bring  bookings  back  to  direct.  But  just 
tracking, for example, the percentage split between direct and OTA guests fails to tell the whole 
story - and to drive the right actions. After all, the greatest thing about direct bookers is not only 
do  they  cost  less  to  acquire,  but  they  also  tend  to  spend  more  and  be  happier  guests.  That’s 
why you should be tracking your DiBPAR (Direct Booking Revenue per Available Room).

 


DiBPAR =
𝑅𝑜𝑜𝑚  𝑟𝑒𝑣𝑒𝑛𝑢𝑒  𝑓𝑜𝑟  𝑑𝑖𝑟𝑒𝑐𝑡  𝑏𝑜𝑜𝑘𝑖𝑛𝑔𝑠  − 𝑐𝑜𝑠𝑡  𝑜𝑓  𝑎𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛  + 𝑛𝑒𝑡  𝑎𝑛𝑐𝑖𝑙𝑙𝑎𝑟𝑦  𝑟𝑒𝑣𝑒𝑛𝑢𝑒  𝑓𝑜𝑟  𝑑𝑖𝑟 𝑒𝑐𝑡  𝑏𝑜𝑜𝑘𝑒𝑟𝑠
                                                                                 

                                                                                𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒  𝑟𝑜𝑜𝑚𝑠

 


DiBPAR  makes sense for two reasons. The  first  is that  it  helps you track  your performance as 
you  concentrate  on  driving  more  of  your  business  via  direct  channels.  Secondly,  it  focuses  you 
on making the most of your direct relationships by adding upsells and ancillaries.

 


It  goes without  saying  that  as a value-conscious marketplace,  consumers will almost always go 
for  the  cheapest  option  when  booking  any  form  of  travel  or  accommodation.  But  when 
consumers are presented the same offering for the same price, which do they choose?
A research shows that if the hotel price is the same price as the OTA, 65% of consumers would 
choose to book directly with the hotel. But that’s not all. The same experiment also proved that 
even  in  scenarios  where  there  isn’t  price  parity,  consumers  still  prefer  to  book  direct.  Where 
there is a 1% difference in price with hotels being  more expensive, 63%  of consumers will still 
choose  the  hotel.  Where  there  is  a  10%  difference  in  price  (again,  with  hotels  being  more 
expensive), 51% of consumers will still choose to book directly with the hotel.

 


We’re seeing more and more hotels introduce a metric that tracks whether they’re getting more 
direct  bookings,  but  no-one  is  yet  tracking  the  total  value  of  those  direct  bookers.  There's  a 
significant gap between revenue collected from direct bookers and revenue collected from guest 
who come vie an OTA. Bookings via a hotel's website are more profitable by 9% than those on 
OTAs - and this figure increases to almost 18% when you factor in ancillary spend.

 


The  initial  disparity  comes  from  the  amount  lost  to  OTA  commissions.  On  average,  upscale  US 
hotels  retain  93.2%  of  guest  paid  revenue  when  that  guest  books  on  their  website.  They  only 
retain  82.7%  when  that  guest  came  through  an  OTA.  And  then,  guests  who  book  direct  are 
much  more  likely  to  spend  on  extras  such  as  room  upgrades  and  dining  offers  -  so  the  net 
revenue retained by the hotel rises even higher.

 


Hoteliers  need  to  know  the  worth  of  the  direct  bookers  they’re  trying  so  hard  to  attract  -  and 
DiBPAR might just be the way to work it out.​

 

Source: https://www.triptease.com/said-no-one-ever
https://www.triptease.com/vital-performance-metric-hotels/?utm_source=Email_Blast&utm_medium=Industry_news&utm_campaign=Drip&mkt_tok=eyJpIjoiTXpZM1lUY3labUl6TWpNeSIsInQiOiI2ODhJOFwveGN5TEdTNXMxTTNyRThuaG1cLzgyblNVVkx6NHFNdjJWQ2RMOVk3azhKWG51c3JaWEk0aUU2N3dKRDRyZWZEVVQ3ZkR0TEhZUzhlVEVqYTB6dVVCbU5EXC9Ra2pUbk1vb1p6MFRpQklWN2pcL3hYcHEwZ0RYZjhLS0hjbXoifQ%3D%3D

 

 

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