Revenue Management Glossary

Business on the Books (OTB)

Definition

“Business on the books” (OTB) is a term used to refer to the confirmed bookings (and revenue) for a future period of time. Bookings are considered confirmed when they are pre-paid, as it indicates a commitment on the part of the guest to stay with your property; pre-paid bookings with free cancellation would not quality as “business on the books”, as it is possible that the guest will not actually show-up for their reservation and require the deposit to be refunded.

How to use it

Business on the books enables you to make better, data-based decisions about pricing, staffing, inventory and other operational strategies. It can also help you to more accurately forecast future financial performance and manage cash flows more effectively.

Formula

To esblish the total value OTB, multiphy the number of nights booked by the rate charged per night for each room type, over the given period. Add these amounts together to establish the total income from room sales expected, as per the current bookings (OTB).

Related Terms

Occupancy, ADR, RevPAR, Forecasting, Revenue Management
I review my business on the books regularly to look for new opportunities to boost revenue by adjusting my revenue management strategies in response to how far ahead bookings are made, the pace of bookings and any cancellations or changes. Doing so helps me to maximise revenue opportunities and improve my team’s operational efficiency.

Hendrik Nieheus

Hendrik Niehues
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