Search Conversion Rate and Availability Rate: two essential ratios in demand analysis.

It has been a few weeks since we launched the dashboards of Demand in PORTAL BI, and we know that you are already taking advantage of them. Today we want to delve into two KPIs that can make a difference in your strategy:

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🔎  Search Conversion Rate

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This ratio gives us a clue as to how many times users need to search before saying: This is the room I want!  
 
And as with any KPI, the important thing is not so much the number itself, but its trend. And this must be analyzed together with the search volume (searches):  

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📈 If it goes up, it means that a higher proportion of searches are converted into bookings, which indicates that users easily find what they are looking for. It could also be due to a drop in search volume.  

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📉 If it goes down, it may be a sign that users are searching but booking less, perhaps due to difficulties in finding the right option or because the offer does not seem attractive. It could also be influenced by a significant increase in search volume.  

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And watch out for the User Conversion Rate in the Web Analytics dashboard! Although they may seem the same, they are not.    

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·                  The Search Conversion Rate measures the conversion based on the searches that users make on the web. And a user can perform multiple searches until they hit the key.  

·                  The User Conversion Rate focuses on the final conversion of the user, regardless of how many searches they make or if they return another day. The important thing is that they have decided and booked our hotel.  

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These are different KPIs and both give us key clues to improve conversion and enhance the user experience.  

Both give us key clues to improve conversion and optimize the user experience.

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🏨  Availability Rate: the other side of the coin  

The sales potential of the hotel is not only determined by the interest it generates through its search volume, but also by whether we can offer available rooms for those dates and meet the demand. This is where the Availability Rate comes into play.  

If the user launches a search and we show them available options, all is well. But if the hotel is closed, there is no inventory, or we apply restrictions, the availability drops.  

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What can we do?

If the lack of availability coincides with a drop in conversion and we see that there is truly an interesting volume of searches for those dates, we are not finding the balance between supply and demand, and perhaps there is room to optimize:

✔️ Adjust restrictions (if logistics allow).  
✔️ Move inventory between channels to take advantage of demand peaks.  

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And the million-dollar question, what is a good availability rate? There is no universal number, but the important thing is to analyze it in context and make sure that we are not missing booking opportunities.  

See you on the dashboards!  

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