8 Travel Agency KPI Metrics to Track and How to Calculate

Travel agencies are an integral part of the travel industry. They provide valuable services to both corporate customers and individual travelers. To ensure your agency is performing at its best, you need to track key performance indicators (KPIs). A KPI is a number or number that shows how well your business is performing overall. KPIs can help you analyze how well each department in your business is performing, so you can make improvements if needed. The following metrics are useful to know when running a travel agency:

The following metrics are useful to know when running a travel agency.

When running a travel agency, there are many different KPIs to track. The following measures are useful to know:

• Number of business accounts
• Number of loyal business accounts (a client who has stayed with your agency for over a year)
• Number of personal accounts (people who book as individuals)
• Customer Lifetime Value (the total revenue generated by an individual customer over their entire relationship with your business)

Another crucial metric is the average reservation value (value of value). This shows you how much each customer spends on average per trip booked through your agency.

1. Number of business accounts

The number of business accounts is an important metric to track because it helps you understand how much of your business comes from large companies and organizations. Corporate accounts are defined as businesses, organizations, and groups that book travel for their employees. These accounts have certain features that make them more profitable than personal accounts:

• They usually buy in bulk. This means they can take advantage of better prices on flights and hotels by purchasing multiple seats at once or getting a group rate.
• They tend to be more loyal customers who refer customers to your agency when they need something else (like car rentals or cruise packages).
• They tend to be more profitable than personal accounts because they usually buy in bulk.
• They are often easier to work with as they have a dedicated employee managing travel arrangements for the company rather than having you deal with dozens of people at once.

2. Number of loyal business accounts

Loyal business accounts are important to your agency because they give you a steady stream of income. You can increase the number of loyal business accounts by sending out regular email marketing campaigns, sending postcards to current customers, and inviting them to events like webinars or conferences.

Loyal Business Accounts = Number of Active Business Accounts – Number of Terminated Business Accounts + Number of New Business Accounts

Increase the number of loyal business accounts:

• send monthly emails with special offers; send postcards at least every six months; Invite customers to webinars and conferences (or other events)
• Get a dedicated salesperson to focus on business accounts; Find out what customers need, then deliver it.

[right_ad_blog]

3. Number of personal accounts

This metric is a bit different from the others, as it doesn’t focus specifically on the number of accounts you sell, but rather the number of personal accounts you have opened. A personal account is any new customer who has signed up with your agency through a referral or direct contact by an employee. Therefore, this metric can be attributed to both sales and marketing activities.

Loyal Personal Accounts (LPA)

As the name suggests, this is the number of customers who have purchased at least twice in a year from your agency. The key here is that they are loyal customers and not just one-stop shop customers who left after buying just once. The idea behind this metric is to show how consistent your business model has been in converting new leads into repeat customers over time and to determine whether or not there is room for improvement in your current sales process.

4. Customer Lifetime Value

Customer Lifetime Value (CLV) is the total amount of revenue you will generate from a customer over their lifetime. This is calculated by multiplying the average ticket price by the average number of trips per year and then adding other additional sources of income such as hotel bookings or car rental.

Example: A client spends ,000 on a trip that includes airfare and accommodation for 3 nights in Italy for themselves and their family members. They also book separate transportation to get them into town when they visit (0). On top of all that, they book a night at your partnership hotel while they travel through Rome (0). CLV = (00 + 200 + 150) = 50

5. Average booking value (trip value)

Average Booking Value (Trip Value) – Average Booking Value is the average price of all your bookings. It is calculated by dividing your total revenue by the total number of reservations.

Average booking value = Total revenue / number of bookings

The average booking value is useful for comparing the performance of different products or services, as it allows you to identify the profit that each product or service generates based on its cost.

6. Revenue per employee

The Revenue Per Employee Metric tells you how much money your business generates from each employee. This is a great metric to track because it shows you how efficient your business is at generating revenue and how much each employee contributes to that revenue.

The formula for calculating revenue per employee is:

Revenue per employee = Total revenue / number of employees (FTE)

For example, if a company had million in total revenue and 100 employees, the formula would be 10,000,000/100 = 0,000. This means that this company had an average of 0,000 in revenue per employee. Revenue by employee metrics are a great way to track your company’s efficiency and productivity. A higher number means your employees are more productive, and a lower number means you may need to re-evaluate how things are done.

There are a number of factors that can influence revenue per employee metric, including:

• The size of your business. Larger companies tend to have more revenue per employee than smaller companies.
• The industry you are in.

Some industries tend to have higher revenue per employee than others. For example, software companies tend to have higher revenue per employee metrics than general contractors.

7. Net Profit Margin

Net profit margin is a good indicator of how well a business is doing. It is calculated by dividing net profit by revenue. The higher it is, the better your business is performing overall financially. The net profit margin can be calculated using the following formula:

Gross Profit = Revenue – Cost of Goods Sold – Operating Expenses + Other Revenue

% Net Profit = Profit / Gross Revenue

Net profit margin is a good indicator of how well a business is doing. It is calculated by dividing net profit by revenue. The higher it is, the better your business is performing overall financially.

8. Repeat Traveler Rate

If you are a travel agency and want to know the percentage of customers who traveled with your agency in the last 12 months, simply divide the number of repeat business travelers by the total number of travelers. Then multiply that by 100%. The result is your repeat trip rate.

So let’s say you have 40 customers who have booked two trips in the past 12 months, giving them a repeat trip rate of 20% (40/200). This means that 20% of all people who have used your services have booked two trips within a year. It’s a good metric to track because it tells you how many repeat customers you’re getting versus new ones – and lets you know if those are from existing customers or not (more on that later).

Conclusion

The metrics listed above are just a few of the many KPIs you may want to track. It’s important that you choose the ones that will best help you measure your success as an agency owner or manager.