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The total value of bookings measured before specified deductions, under the operator's reporting convention.
Save conceptGross bookings measure the value of travel reservations made through a business, before separating out the company’s own revenue. Depending on the company’s definition, the figure can include the amount payable to accommodation providers, service fees and taxes, with adjustments for cancellations. It measures transaction activity; it is not automatically money the platform keeps.
A platform that acts as an intermediary may recognise its service fee as revenue while the much larger value of the stay contributes to gross bookings. Timing can differ too: a reservation made today may relate to travel months later, and revenue recognition follows the company’s accounting policy. Companies define operating measures differently, so comparable-looking booking figures require a definition check.
Suppose customers book hypothetical stays with a combined value of 1 million through a platform. Assume 850,000 belongs to accommodation providers and 150,000 is the platform’s fee, with no taxes or cancellations in this simplified example. Gross bookings are 1 million, but platform revenue is 150,000. After the platform pays its operating costs, profit would be smaller still.
Gross booking growth can reflect more reservations, higher prices, longer stays or changes in currencies and cancellation patterns. It does not by itself establish growth in traveller numbers or net income. Distinguish bookings made during a period from stays completed during it, and read the company’s disclosed definition before comparing different travel businesses.
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