What is Gross Booking Revenue (GBR)
Gross Booking Revenue (GBR) is a financial metric used in the vacation rental and hotel industry to measure the total revenue generated by room or property rentals before any costs or expenses are subtracted.
This metric is calculated by considering the total amount of money received from guests for room or property rentals, including base rates, add-ons, and other additional fees or charges. GBR can measure the performance of individual properties or the overall performance of a vacation rental or hotel company.
However, it is important to note that GBR is a top-line metric and does not consider any costs such as commissions paid to online travel agencies, marketing and advertising costs, maintenance, property taxes, etc. Therefore, it is essential to track other financial metrics such as Net Operating Income, Occupancy Rate, and Average Daily Rate (ADR) to understand better the overall performance of the property or the company.
GBR can be used in combination with other financial metrics to make informed business decisions and track the performance of a property or a company over time. Moreover, it can be used to compare the performance of different properties or companies in the same market or the performance of the same property or company over different periods.
Property owners, property managers, and companies in the vacation rental and hotel industry should keep track of GBR to understand how much revenue they are generating from their properties and how to maximize their revenue and profitability over time.
💡 Thinking about measuring GBR for your vacation rental business? Download our free rental agreement here.