Booking Curve

Definition: What is a Booking Curve?

A booking curve is a visual representation of booking trends over time used in hotel revenue management and the hospitality industry, helping managers see how reservations increase or decrease in a certain period.

As a hotel revenue manager, it is essential to analyze booking patterns to make data-driven decisions for maximizing profits. The booking curve, which usually has two axes – “days before arrival” and “number of rooms sold” can help you monitor bookings and adjust rates and room availability per your hotel management strategy. 

To make the most of the yield-management approach, you should consider relevant information such as cancellations, room pickup, and hotel booking pace history. 


Booking patterns vary depending on location, booking window, seasonality, and demand-supply conditions. By monitoring and modeling booking curves, you can identify patterns, anticipate shifts in demand, and maximize your revenues based on supply and availability.

Here are some points to consider when working with booking curves:

  • Analyze historical booking windows to identify trends and predict future patterns
  • Consider availability and adjust rates based on occupancy levels and time left until the booking date
  • Factor in seasonality and adjust the pricing accordingly to optimize for overall revenue
  • Analyze cancellations to refine your booking curves and improve forecasting accuracy

Origins of the Term

The concept of the booking curve has its roots in revenue management within the hotel and hospitality industry. As a revenue manager, you must balance your hotel’s demand-supply environment, including tracking booking curves.

Booking curves are essential for hotel management and consulting, as they help understand guest bookings and make informed operational decisions. Awareness of these booking curves is crucial if you’re involved in hotel asset management or hospitality industry sales.

Synonyms and Antonyms

Here are some synonyms you may come across:

  • Booking Curve: Occurrence rate, booking patterns
  • Revenue Management: Management, pricing strategy
  • Bookings: Reservations, engagements

As for antonyms, there aren’t many directly related, but some opposite ideas might include:

  • Booking Curve: Straight line, constant rate
  • Revenue Management: Neglect, mismanagement

Now, let’s consider the interconnectedness between these entities:

EntityRelated TermsRelevance to Booking Curve
Revenue ManagementManagement, PricingCore component
BookingsReservations, EngagementsQuantitative measure
Booking PatternsOccurrence RateQualitative aspect
SeasonalityCyclical ChangesInfluence on the booking curve
Demand-Supply ConditionEquilibrium, ImbalanceFactors affecting curve

How Are Booking Curves Used?

Booking curves are helpful tools for analyzing booking trends, such as the number of bookings made, revenue generated, and the average daily rate (ADR) compared to previous years. By examining these trends, you can gain valuable insights into optimizing your revenue management and pricing strategies.

These curves also play a critical role in forecasting hotel reservations. For instance, using an advanced booking curve model, you can consider data on bookings made in advance and compare it to previous booking data. This analysis can help you manage your hotel’s representation and make necessary adjustments in response to changes in the economic environment.

Practical Examples

A hotel revenue manager needs to keep an eye on the booking curve of their property. They may notice a surge in last-minute bookings during weekends or holidays and use this information to adjust the pricing accordingly. Besides, they can compare the current booking curve with the previous years’ curves to identify any demand shifts, which can help them make better-informed decisions.

An average booking curve usually follows an exponential function governed by the ABCDEF Law, a statistical law that balances the demand and supply in the industry. By recognizing patterns in these exponential curves, revenue managers and hotel consultants can apply various revenue management techniques to maximize profits.

Related Terms

Revenue Management: A strategy in the hospitality industry that optimizes pricing and inventory to maximize revenue. This involves analyzing booking trends and adjusting rates accordingly.

Booking Curve: A visualization tool that tracks bookings over time, helping hotel managers understand and anticipate demand. It typically plots “days before arrival” on the horizontal axis and “number of rooms sold” on the vertical axis.

Hotel Management: The overall operation and administration of a hotel, including revenue management, guest services, housekeeping, and marketing.

Hotel Consulting & Hotel Asset Management: These services provide hotels with expert advice and guidance on revenue management, financial planning, operational strategies, and more.

Revenue Management Consulting & Outsourcing: Businesses offering such services support hotels in implementing revenue management strategies, either as consultants or by fully outsourcing the revenue management department.

Hotel Revenue Management: The application of revenue management principles and techniques specifically to hotels, focusing on maximizing revenue from room sales.

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