Running a successful travel business requires more than just booking incredible trips—it demands a keen understanding of the metrics that drive growth and efficiency. But with so many numbers to track, where should you focus? The answer depends on where you are in your business lifecycle: Startup, Growing, or Mature.
To help you prioritize, I’ve broken down the Top 20 Metrics Travel Advisors Should Monitor into three key business stages. These stages build on each other, meaning that as you progress from startup to growing, and eventually to mature, you don’t stop tracking earlier metrics—you integrate them into a more advanced strategy.
Startup Stage (Laying the Foundation)
In the early days, your primary focus should be on acquiring clients, refining your sales process, and ensuring you’re operating efficiently. These metrics will help you build a strong foundation:
Metrics 2, 3, and 4 are grouped together:
2. Lead-to-Proposal Conversion Rate – The percentage of inquiries that
progress to a formal proposal.
3. Proposal Close Rate – How many of your proposals turn into actual
bookings.
4. Lead-to-Booking Conversion Rate – Your overall success rate in
converting leads into paying clients.
Generally, aim to build up to a 50% Lead-to-Proposal conversion rate and a 50% Proposal Close Rate (which would give you a 25% Lead-to-Booking conversion rate). You can check out the Growth Map course for more information on setting your conversion rate targets based on your specific business model. Don’t give up if you’re not achieving these conversion rates early on, but work to identify what is and isn’t working in your sales process.
5. Average Days to Close – How long it takes from first contact to a booked
client. Measure this. Work to improve it over time.
6. Average Booking Value (or Average Sale) – The average dollar amount of
each booking. Your target is niche dependent, but you want to work to
increase this over time.
7. Hours per Transaction – Hours of time invested per completed transaction
(break down into components, e.g. planning & research, selling, booking,
etc. for a more granular view to identify improvement opportunities). Your
time investment varies, but reducing time spent on repetitive tasks (e.g.,
proposal creation, invoicing) through niche selection can boost your
efficiency.
Growing Stage (Scaling Your Success)
Once you’ve built a solid foundation, it’s time to optimize and grow your business efficiently. These metrics will help you track progress and identify areas for improvement:
8. Customer Acquisition Cost (CAC) – The total cost a travel advisor incurs
to acquire a new client. Since advisors often invest heavily in networking
rather than just paid ads, factor in both direct expenses (e.g., advertising,
events) and your opportunity cost of time.
Formula for CAC for a Travel Advisor:
CAC = Total Marketing & Sales Expenses \ Number of New Clients Acquired
Where Marketing & Sales Expenses include:
9. Referral Rate – How many past clients refer new business to you
(measured at similar intervals as repeat bookings).
10. Client Review Rate – The percentage of clients who leave a review
(Google, Agent Profiler, etc.).
11. Sales & Revenue by Product Category – Identifying your most profitable
product types.
12. Sales & Revenue by Destination – Understanding which destinations
bring in the most revenue.
13. Average Commission Rate – The products and suppliers you book have
a significant impact on your business profit generation. While you shouldn’t
select a supplier solely based on the commission rate, all else equal, it
certainly matters.
14. Commission Revenue Growth – Year-over-year or quarter-over-quarter
growth in commissions.
15. Repeat Booking Rate – The percentage of past clients who book again
(measured at 6, 12, 18, and 24-month increments).
Mature Stage (Optimizing for Maximum Profitability & Efficiency)
For well-established businesses, efficiency and profitability take center stage. These metrics help fine-tune your business for long-term sustainability:
16. Recurring Revenue Mix – The portion of your revenue that comes from repeat clients vs.
new clients.
17. Referral Mix – The percentage of total bookings that come from referrals.
18. Annual Bookings per Client – Understanding how often your clients book
travel.
19. Revenue Per Hour – How much revenue you earn per hour worked.
20. Lifetime Value (LTV) of a Client – The total revenue a client generates
over their relationship with you. You can use this measure to evaluate
marketing opportunities. Your average CAC should always be well less than
your average LTV.
Metrics Matter, but Focus is Key
Tracking all of these metrics at once would be overwhelming. Instead, focus on the ones most relevant to your business stage and current goals. If you’re not currently managing any of the metrics of your business, first, breathe, it’s okay. Second, pick one and start tracking it. Add another after a month or two, and continue to slowly expand your metrics set.
By focusing on the right metrics at the right stage, you’ll build a business that is not just successful but scalable. Start small, track consistently, and evolve your focus as you grow.