Conversion rate

Why is it important to monitor the conversion rate in hotels?

The conversion rate is one of the key indicators for evaluating the effectiveness of online sales strategies and digital marketing activities.

A high conversion rate indicates that the hotel’s website and booking process are well designed, persuasive, and user-friendly. On the contrary, a low conversion rate may highlight issues with the user experience, lack of trust, uncompetitive rates, or insufficient information.

Monitoring the conversion rate helps identify where and why users abandon the booking process, offering opportunities to improve the website experience, simplify procedures, optimize offers and increase the share of direct bookings.

For advertising campaigns, a high conversion rate allows for better ROI (return on investment), reducing the cost per acquisition and improving campaign profitability.

How is the conversion rate calculated in hotels?

The formula is:

Conversion Rate = (Number of Bookings / Number of Visitors) × 100

Example: if 5.000 people visit the hotel website in one month and 150 make a booking, the conversion rate is:

(150 / 5.000) × 100 = 3%

The conversion rate can be calculated for the entire website, for specific campaigns, for individual pages, or by acquisition channel (organic, social, newsletter, advertising, etc.).