Revenue and Occupancy Metrics
1. Revenue Per Available Room (RevPAR)
ADR multiplied by occupancy rate, or total room revenue divided by total available rooms. RevPAR is the foundational hotel performance metric. Year-to-date RevPAR growth was just 0.2% in 2025 (STR), driven entirely by rate increases while occupancy declined. Marketing impacts RevPAR by driving demand during low-occupancy periods, shifting bookings from discounted OTA rates to full-rate direct channels, and generating ancillary revenue through upselling campaigns.
2. Average Daily Rate (ADR)
Total room revenue divided by rooms sold. ADR tells you what guests are paying, but it doesn’t tell you how much of that revenue you keep after commissions and acquisition costs. An ADR of $200 through an OTA at 22% commission nets you $156. The same $200 through a direct booking nets you $190+ (minus booking engine costs of 2-4%). Marketing’s role is to shift the channel mix toward higher-net-revenue bookings.
3. Gross Operating Profit Per Available Room (GOPPAR)
Gross operating profit divided by total available rooms. GOPPAR accounts for all operating costs, not just room revenue. A hotel with high RevPAR but high guest acquisition costs may have a lower GOPPAR than a hotel with moderate RevPAR and strong direct booking economics. This is the metric hotel owners care about most because it reflects actual profitability, not just top-line revenue.
Acquisition and Channel Metrics
4. Direct Booking Ratio
The percentage of total bookings made through your hotel’s website or direct reservation channels. European hotels averaged 28.8% direct bookings in 2023, while Asian hotels achieved 32%. Luxury 5-star properties performed significantly better: 38% in Europe and 56% in Asia (The Hotels Network, 2024). Every percentage point shift from OTA to direct saves you $15-60 per booking in commission costs, depending on your ADR and the OTA’s commission rate. If your direct booking ratio is below 30%, this should be your primary marketing objective.
5. Guest Acquisition Cost (GAC)
Total marketing and distribution spend (including OTA commissions) divided by total unique guests acquired. GAC should be calculated by channel: direct website, branded search, meta-search, OTA, travel agent, and corporate. A property spending $2M annually on all distribution and marketing costs that acquires 20,000 unique guests has a blended GAC of $100. But if OTA guests cost $60 in commissions while direct guests cost $15 in marketing, the channel mix determines your true efficiency.
6. Cost Per Booking by Channel
Marketing and distribution cost allocated to each booking channel. This includes commission rates (OTAs: 15-30%, meta-search: 5-12%, direct: 2-4% booking engine fees), paid search costs, social media advertising, and email marketing costs. Some properties have reduced OTA dependency and commission costs by 7-10% through more intelligent channel allocation (Click-Vision, 2026). Track this monthly and set quarterly targets for shifting the mix.
7. Website Conversion Rate
The percentage of hotel website visitors who complete a booking. Most hotel websites convert at 2-4%, but top performers reach 5-8%. If your website receives 50,000 visitors per month and converts at 2%, you get 1,000 bookings. Improving conversion to 4% doubles your direct bookings to 2,000 without any additional traffic spend. Test rate comparison widgets, best-rate guarantees, and simplified mobile checkout to improve conversion.
Guest Experience and Reputation Metrics
8. Review Velocity
The number of new online reviews received per month across Google, TripAdvisor, Booking.com, and other platforms. Review velocity impacts both search visibility and booking conversion. Hotels with 100+ reviews on Google rank higher in local search results. Properties that receive 20+ new reviews per month maintain fresh content that influences booking decisions. Marketing can drive review velocity through post-stay email requests timed 24-48 hours after checkout.
9. Average Review Score
Your weighted average rating across all review platforms. A 0.1-point increase in review score can correspond to a 1-2% increase in ADR because travelers are willing to pay more for higher-rated properties. Track review scores by platform (Google vs. Booking.com vs. TripAdvisor) and by sentiment category (cleanliness, service, location, value). Respond to 100% of negative reviews within 24 hours. A thoughtful response to a negative review often influences prospective guests more than the negative review itself.
10. Customer Satisfaction Score (CSAT)
Post-stay satisfaction measured through guest surveys, typically on a 1-5 or 1-10 scale. CSAT predicts repeat stays and referrals. A guest who rates their stay 9/10 is 5x more likely to return than a guest who rates it 7/10. Send satisfaction surveys within 24 hours of checkout, keep them under 3 minutes, and close the loop on every score below 7. Marketing’s role is to set accurate expectations pre-arrival so the on-property experience matches or exceeds what was promised.
Loyalty and Repeat Guest Metrics
11. Repeat Guest Rate
The percentage of guests who have stayed at your property more than once within a defined period (typically 24 months). Independent hotels see repeat rates of 15-25%, while chain hotels with loyalty programs achieve 30-50%. Each repeat guest has a near-zero acquisition cost. If your repeat rate is below 15%, invest in post-stay email sequences, loyalty offers, and personalized return incentives before increasing acquisition spend.
12. Loyalty Program Enrollment Rate
The percentage of guests who join your loyalty or rewards program during or after their stay. For independent hotels, a 20-30% enrollment rate is strong. The value of loyalty members is in their booking channel: loyalty members book direct 60-80% of the time, avoiding OTA commissions entirely. Track the enrollment rate and the direct booking rate of enrolled members separately.
13. Revenue Per Guest (Total)
Total revenue generated per guest including room revenue, F&B, spa, events, and other ancillary revenue. A guest paying $200/night for a 3-night stay generates $600 in room revenue. But if that guest also spends $80 on dining, $60 on spa, and $40 on activities, total revenue per guest is $780. Marketing drives ancillary revenue through pre-arrival upsell emails, in-stay
digital promotions, and package offers that bundle experiences with room bookings.
14. Email Marketing Revenue
Revenue directly attributed to email campaigns including pre-arrival upsells, seasonal promotions, loyalty offers, and re-engagement campaigns. For hotels with an active email program, email should contribute 8-15% of total direct booking revenue. The cost of email marketing is minimal compared to paid channels, making it the highest-margin acquisition and retention channel. Build your list through WiFi login captures, booking confirmation opt-ins, and loyalty program enrollment.
15. Social Media Engagement Rate
Total engagements (likes, comments, shares, saves) divided by total followers or impressions. For hospitality, 3-6% engagement is strong. Social media rarely drives direct bookings (typically less than 2% of revenue), but it influences brand perception and discovery. Track social as a brand awareness metric, not a direct revenue channel. The real value of social for hotels is visual storytelling that builds aspiration and trust. A beautiful property photo with 500 saves on Instagram may not generate trackable bookings, but it contributes to the guest’s decision when they search for hotels later.
