Average booking value (ABV) is a revenue metric calculated by dividing total booking revenue — including nightly rates, cleaning fees, pet fees, and any other guest charges — by the total number of confirmed bookings in a given period. ABV provides a quick read on the economic weight of a typical reservation and is particularly useful for tracking the impact of pricing changes, minimum stay adjustments, and ancillary revenue initiatives. A rising ABV signals that each booking is generating more total revenue, whether through higher nightly rates, longer stays, or increased fee income. Monitoring ABV alongside occupancy rate and RevPAR gives operators a comprehensive view of revenue health.
Why this matters for property managers
This metric shows how much each reservation actually contributes, guiding decisions on minimum stays, fees, and target guest segments. A rising booking value can lift revenue even when total reservation counts stay flat. Tracking it against costs reveals which booking types are genuinely profitable.
Frequently Asked Questions
How do you calculate average booking value for a vacation rental?
How can vacation rental hosts increase their average booking value?
Is average booking value a better metric than average daily rate?
Should I track average booking value separately by season?
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