A common definition of ‘conversion rate’ refers to the change of the status of a person to another status. That sounds a little theoretical.
From the point of view of the sales or marketing controlling, the monitoring of the conversion rate is always then important if a) significant investments e.g.in the website or booking engine are made, or b) online advertising is actively carried out. If a hotel pays for the traffic, i.e. the visitors on its own website, E.g. on Google AdWords or Trivago with a pay per click model, then costs and profits should be exactly compared.
If in a booking engine of 100 visitors, i.e. people who have landed by advertising, by their own search in Google or Yahoo on the hotel page, and exactly 1 visitor actually books in this booking engine, then this site has a conversion rate (abbreviated CR) of 1% (1 buyer divided by 100 visitors = 0.01 = 1%).
The monitoring of these indicators is an important prerequisite for controlling and using optimal measures, which can be very diverse.
As with many key figures, there are multiple “systems” or data banks involved in the hotel. In the niche of online marketing, they can be the website analysis tool (such as Google Analytics or Piwik), the booking engine (WBE), the accounting software (it knows the issues of ongoing campaigns), and perhaps the hotel software.
Only with key figures, with their fluctuations or debit / actual comparisons that are regularly checked will be from experience actively monitored as well.
During the introduction of a project “sales and marketing controlling”, the RHC analyzes the systems involved and implements processes with simple exports from the systems that are then merged into an Excel application.
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