One of the most important metrics for a Hotel business is increasing active users to increase our bookings. Let’s say that our hotel's conversion rate is 5% and that we have 1,000,000 MAUs (Monthly Active Users). We define conversion rate as total hotel bookings divided by the number of users shopping for hotels. We want to improve the top of the funnel by increasing our MAUs! Let's say an improvement has been discovered to increase MAUs, can you quantify the potential revenue impact or value of this change? You'll need to make some assumptions. For example, you can assume the average transaction value is $300, and the business earns $30 for each transaction.

One of the most important metrics for a Hotel business is increasing active users to increase our bookings. Let’s say that our hotel's conversion rate is 5% and that we have 1,000,000 MAUs (Monthly Active Users). We define conversion rate as total hotel bookings divided by the number of users shopping for hotels. We want to improve the top of the funnel by increasing our MAUs! Let's say an improvement has been discovered to increase MAUs, can you quantify the potential revenue impact or value of this change? You'll need to make some assumptions. For example, you can assume the average transaction value is $300, and the business earns $30 for each transaction.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MTC: Calculate the hotels margin of safety (both in units and in sales dollars) for Many Glacier Hotel,...

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