Does GBR include taxes or refundable deposits?

No. Amounts collected and remitted on behalf of others—such as lodging/occupancy taxes and refundable security or damage deposits—are pass-throughs and are typically excluded from Gross Booking Revenue.

What is the difference between GBR and GBV (Gross Booking Value)?

GBV often refers to the guest’s full basket on the platform and may include taxes and platform fees. GBR reflects your recognized revenue (nightly rates plus owner-retained fees) before expenses, usually excluding pass-through taxes and deposits.

Are OTA commissions and payment fees deducted in GBR?

No. Commissions, payment processing fees, and other costs are expenses below the top line. They reduce NOI and net income—not GBR.

How do I estimate GBR from ADR and occupied nights?

Multiply ADR by occupied nights, then add owner-retained fees and add-ons, and subtract refunds. Example: (ADR × occupied nights) + fees + add-ons − refunds = GBR.

Cash or accrual: which method should I use for GBR?

Be consistent. Cash basis recognizes revenue when paid; accrual recognizes revenue when the stay occurs. Many operators use accrual for performance metrics and cash for tax tracking.

How do I reconcile GBR across channels?

Export revenue by month from your PMS, compare with OTA statements, remove pass-through taxes/deposits, add owner-retained fees, and net out refunds. Investigate any timing differences from cancellations or date changes.

Gross Booking Revenue (GBR)

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Definition: What is Gross Booking Revenue?

Gross Booking Revenue (GBR) is the total revenue recognized from bookings in a given period before deducting expenses. For vacation rentals and hotels, GBR includes nightly rates and owner-retained fees (cleaning, pets, parking, early check-in)—and it excludes pass-through items like lodging taxes and refundable deposits.

GBR is your “top line” from booked stays. It’s a clear, comparable starting point for analyzing pricing performance, marketing impact, and seasonality before you layer in costs and profitability metrics.

What Typically Counts—and What Doesn’t

Common inclusions: nightly rate revenue; owner-retained cleaning, pet, parking, and resort fees; paid add-ons you deliver (kayak rentals, firewood bundles, guided experiences); change fees you keep; early check-in/late checkout fees.
Common exclusions: pass-through lodging/occupancy taxes; refundable security or damage deposits; platform/merchant fees paid directly by the guest to a third party; owner advances or reimbursements.

How to Calculate GBR

Sum recognized revenue lines for the period, excluding pass-throughs and refunds/chargebacks.

Formula (conceptual): GBR = (Nightly Rate Revenue + Owner-Retained Fees + Add-Ons + Other Earned Income) − (Refunds and Chargebacks)
From ADR & Occupancy: (ADR × occupied room nights) + owner-retained fees + add-ons − refunds = GBR. See ADR, Occupancy Rate.

Why GBR Matters

Pricing & revenue decisions: Track GBR alongside RevPAR to see if changes in rate or mix are driving top-line growth.
Benchmarking: Compare periods, properties, and channels using a consistent definition before expenses.
Planning & financing: Lenders and investors often start with top-line metrics like GBR before evaluating NOI and cash flow.

Examples

Single lake house: $58,800 in rate revenue + $3,000 owner-retained fees + $1,200 add-ons − $0 refunds → $63,000 GBR.
Boutique lakeside inn: $495,000 room revenue + $42,000 in amenity and experience fees − $7,000 refunds → $530,000 GBR.

Good Practices for Clean Reporting

Lock a definition: Document your inclusions/exclusions for GBR and use it consistently across properties and periods.
Segment the top line: Break out rates vs. fees vs. add-ons to understand what truly drives growth.
Reconcile regularly: Tie your PMS revenue to bank deposits and OTA statements; track timing differences from cancellations and date changes.

Related Terms

Frequently Asked Questions

Does GBR include platform service fees charged to guests?

Only if you recognize them as your revenue. If a platform charges and keeps a guest service fee, do not include it in your GBR.

How should I treat cancellations and date changes?

Reverse previously recognized revenue for cancelled stays and record refunds in the period they are recognized. Note changes that shift revenue between periods.

Can ancillary revenue inflate GBR in a misleading way?

It can if you don’t segment. Report GBR by category (rates, fees, add-ons) so you can see whether growth is rate-driven or add-on driven.

What if my PMS shows “gross” figures that include taxes?

Adjust your report to remove pass-through taxes and deposits to align with your GBR definition. Keep a separate line for taxes to simplify audits.

How does GBR connect to profitability?

GBR is the starting line. Subtract operating expenses to arrive at NOI; subtract debt service and other below-the-line items to reach net income.

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