model tourism kpis

Top 4 Travel and Tourism KPIs

The tourism industry can be a challenging one to measure KPIs (Key Performance Indicators) for. You must ensure you keep your standards high to make sure customers return, and keep track of many moving parts. Tourism is an ever-growing industry with new people coming in all the time. With so many different offerings, it’s hard not to get lost in reporting metrics and never know which ones are most important for your success.

This article will discuss our top four Key Performance Indicators that we recommend when working with clients from the travel and tourism sector or working in the sector yourself. These KPIs are crucial in measuring the overall performance of tourism companies, as they show how well businesses are performing across the board without getting mired down by too much detail or data collection.

With a lot of different offerings, the tourism industry can be a challenging one to measure Key Performance Indicators for. You must ensure you keep your standards high to make sure customers return, and keep track of many moving parts.

What are Key Performance Indicators (KPIs)?

Key performance indicators are measurements within an organization that provide a simple way to determine how well it is performing. They will vary depending on your business, sector, and location.

When should I use a Key Performance Indicator?

Always. KPIs should be used to measure how well you are doing towards achieving your goals. It allows you to keep track of the key elements in your business and align them with current trends. KPIs can help identify problems, opportunities for improvement, or changes that need to occur because they allow you a bird's eye view

KPI 1: Customer satisfaction

A crucial KPI in the travel and tourism industry, you need to measure this reputation metric to evaluate the quality of your services. You want to aim for a high customer satisfaction rate, as that will highlight brand loyalty. In turn, you’ll notice an uptick in repeat business and recommendations.

How can you measure customer satisfaction in the tourism industry?

Try creating a customer satisfaction scorecard, ask your customers about their experience through surveys as part of your entry process (just make sure it doesn't get in the way of the user experience!). If not, try to find out if they're satisfied by measuring the number of complaints or compliments received as an indicator for customer satisfaction ratings. A more refined example of customer satisfaction KPIs can be the NPS score (Net Promoter Score).

What is a Net Promoter Score?

A Net Promoter Score (NPS) is a Key Performance Indicator measuring customer loyalty. The higher the score, the more likely it is that customers will engage with your business again in the future. NPS surveys ask respondents to answer one question: on a scale of 0-to-100, how likely are you to recommend our company

KPI 2: Number of visitors in a given time period vs transactions

This is a crucial Key Performance Indicator to measure as having a lot of guests or visitors may seem like everything is going well but can become increasingly misleading in the long-term if they're not spending any money.

The threshold for success here will vary on the industry and how you adjust will change as well. For example, those in the hotel industry may want to try and increase bar sales once they have people in the building. Tourist destinations may want to look at increasing sales of souvenirs or refreshments once someone's bought admission.

What should I do for my business if I'm not sure?

Speak to peers or experts in your industry; different industries, regions, and countries will have different economies, different KPIs, and potentially even a different solution to the same problem.

KPI 3: Staff turnover

In normal operating conditions, you can measure this KPI to identify any problems with staff retention. If staff members aren’t sticking around, you need to look at why. If people are leaving, you could be making a big loss on training time, wages, and even severance packages. It’s much cheaper for you to retain existing staff.

How can I find out why my staff members are leaving?

There are a few ways to discover why your employees are leaving. You can survey them or ask for feedback, and you might even want to do exit interviews with people who have left the company recently. However, it is better to speak to your employees before they leave and stop them from leaving in the first place!

KPI 4: Total revenue per available room

Tracking your total revenue per available room in the hotel industry highlights how much revenue your business is generating per available room. This key performance indicator is calculated using total income from all sources rather than just that earned by each room. If you’re not earning as much as you need per room, look at benchmarked results from your industry standard to see if you’re charging the correct price.

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Community wellbeing, care, and agency drive tourism's success in a regenerative ecosystem. | Photo by Robert Bye on Unsplash

Rethinking Tourism

November 20, 2023

Adopting a Tourism Model Focused on Regeneration Requires Rethinking KPIs

Embracing a regenerative approach to anything requires systems thinking. That is, we need to consider ecosystems and their complex interconnectedness as a whole versus parsing everything into isolated pieces.

In tourism, this requires adopting lessons from the past and considering current conditions in addition to looking strictly toward the future. In the past, the loudest stakeholders and dominant culture took up space and made decisions, but a regenerative approach invites all shareholders into the conversation about tourism.

And, it requires acknowledging that tourism doesn’t exist in a silo ; instead, those working in tourism must consider the larger community capacity and needs — related to issues like access to education and healthcare, infrastructure development, and other activities like agriculture and aquaculture — and how tourism fits into this fabric.

When I talk about tourism that supports and serves regeneration at conferences and with colleagues, many people listen, nod their heads, and generally seem to agree with what’s being said.

And then, despite any interest in adopting this approach, the conversations often revert back to occupancy rates, international arrivals, and projected revenue. Regeneration becomes just another buzzword to integrate into a business plan someday.

Spoiler alert: That is not how regeneration works.

Another spoiler alert: Completely rethinking the way we define, develop, and deliver travel experiences using a regenerative approach requires rethinking the way we measure “success” as well.

This is why I found “Beautiful KPIs & Resident Engagement” to be one of the most enlightening sessions I attended at the IMPACT Sustainability Travel & Tourism Conference in Victoria, Canada, in early 2023. While nearly a year has gone by since the conference, the issue of key performance indicators (or KPIs, something used to gauge “success”) remains highly relevant and frequently discussed in tourism, especially as it relates to regeneration.

One of the common threads coming out of any conversation about the nebulous “new” tourism model is that it should be community-led and -focused. If that’s the case, then any measurement of tourism “success” also needs to lean heavily on community wellbeing (as defined by the community) and resident engagement (as opposed to simply resident sentiment ).

Instead of thinking about how tourism benefits communities , reciprocal relationships ensure that tourism is a partner in a community’s sustainable development and not simply a force barging its way in, defining what “success” looks like without adopting a holistic perspective. A strong, sustainable community is a resilient one — a people and a place that can restore and repair themselves.

In the aforementioned IMPACT session, I was especially inspired by what panelist Marco Lucero , co-founder of Cuidadores de Destinos, had to say about several KPIs co-designed and implemented throughout Chile. These include:

• Number of children playing in public places.
• Number of people who know their neighbors.
• Percentage of ambient audio that belongs to bird song.
• Percentage of food produced within a radius of less than 50 kilometers.
• Percentage of people who use a bicycle as a means of transportation.
• Number of women walking at night who feel safe.
• Number of public decisions that residents are a part of.

If these don’t sound like your typical tourism KPIs, good. They shouldn’t.

This is where that systems thinking comes into play: If something is important to and relevant within the community — mobility and accessibility issues, housing availability and homelessness, cultural vibrancy, environmental health, etc., etc. — then it must be important to those working within tourism as well. Improvement of the quality of life within a place where tourism is present is paramount for all. After all, a great place for people to visit must first be a great place for people to visit.

You live somewhere. Wouldn’t you want it to prioritize your needs and desires before those of travelers?

If you need a reason to rethink those internally focused, data-driven, capitalistic, harmful KPIs tourism’s been leaning on for so long, that is your sign.

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About the author

JoAnna Haugen is an award-winning writer, speaker, consultant, and solutions advocate. She is also the founder of Rooted, a solutions platform at the intersection of sustainability, storytelling, and social impact. Hire her as a consultant or to speak at your next event.

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Travel & Tourism Development Index 2021: Rebuilding for a Sustainable and Resilient Future

1.1 Benchmarking the enablers of Travel and Tourism development

The index provides a strategic benchmarking tool for business, governments, international organizations and others to develop the T&T sector. By allowing cross-country comparison and by benchmarking countries’ progress on the drivers of T&T development, it informs policies and investment decisions related to the development of T&T businesses and the sector as a whole. The index provides unique insights into the strengths and areas for development of each country to support their efforts to enhance the long-term growth of their T&T sector in a sustainable and resilient manner. Furthermore, it provides a valuable platform for multistakeholder dialogue to formulate appropriate policies and actions at local, national, regional and global levels.

The index is comprised of five subindexes, 17 pillars and 112 individual indicators, distributed among the different pillars. However, the five subindexes are not factored into the calculation of the index and are used only for presentation and categorization purposes. The Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact pillars are all new when comparing earlier TTCI editions with the new TTDI.

Figure 1: The Travel & Tourism Development Index framework

Business Environment (9 indicators) : This pillar captures the extent to which a country’s policy environment is conducive to companies doing business. Research has found significant links between economic growth and aspects such as how well property rights are protected and the efficiency of the legal framework. Policy stability and levels of regulatory burdens and corruption also play a critical role in determining economic development, productivity and overall investment decisions. These factors are important for all sectors, including T&T. In addition, we consider access to financing for small and medium-sized enterprises (SMEs), which is a particularly relevant issue for T&T development as the majority of operators are SMEs.

Safety and Security (6 indicators) : Safety and security are critical factors in determining the success of a country’s T&T sector. This pillar measures the extent to which a country exposes locals, tourists and businesses to security risks. In addition to creating barriers to T&T investment, countries with a high incidence of crime or violence are likely to deter visitors, making it less attractive to develop the T&T sector in those places. Here, the costliness and occurrence of common crime and violence, police reliability, and terrorism and armed conflict are considered.

Health and Hygiene (6 indicators): This pillar measures healthcare infrastructure, accessibility and health security. COVID-19 has highlighted the potential impact of communicable diseases on the T&T sector. In particular, the pandemic has demonstrated how important a country’s healthcare system is when it comes to mitigating the impact of pandemics and ensuring safe travel conditions, and workforce availability and resilience. In general, if tourists or sector employees do become ill, the country’s health sector must be able to ensure that they are properly cared for, as measured by the availability of and access to physicians, hospital beds and general healthcare services. Moreover, access to safe drinking water and sanitation is important for the comfort and health of travellers and locals alike. Please note that due to evolving COVID-19 conditions, this pillar does not track the pandemic itself.

Human Resources and Labour Market (9 indicators): This pillar measures the availability of quality employees and the dynamism, efficiency and productivity of the labour market. High-quality human resources in an economy ensure that the sector has access to the collaborators it needs. Regarding a quality workforce, this means that years of schooling, formal educational attainment rates, the education system’s ability to meet economic needs and private-sector involvement in upgrading human resources are measured. Regarding the labour market, the flexibility, efficiency and openness of labour markets, as well as labour productivity in the hospitality, restaurant and transport sectors, are tracked.

ICT Readiness (8 indicators): This pillar measures the development and use of ICT infrastructure and digital services. Online services and digital platforms continue to grow in importance for T&T business operations. Such services and platforms are being used for everything from planning itineraries to booking travel and accommodation. Moreover, ICT has become crucial for businesses to access and advertise to new markets, improve efficiency and gain insights into consumer needs. The components of this pillar measure not only the existence of modern physical infrastructure (e.g. mobile network coverage and electricity supply), but also the degree to which digital platforms are used for T&T and related services and gain insights into consumer needs. The components of this pillar measure not only the existence of modern physical infrastructure (e.g. mobile network coverage and electricity supply), but also the degree to which digital platforms are used for T&T and related services.

Prioritization of Travel and Tourism (5 indicators): This pillar measures the extent to which the government and investors actively promote and invest in the development of the T&T sector. The extent to which the government prioritizes the T&T sector has an important impact on T&T development. By making clear that the sector is of primary concern, the government can channel funds to essential development projects and coordinate the actors and resources necessary to develop the sector. The government can also play an important role in directly attracting tourists through national marketing campaigns. This pillar includes measures of government spending, country branding and the completeness and timeliness of providing T&T data to international organizations, as these indicate the importance that a country assigns to its T&T sector. Moreover, overall capital investment in T&T is accounted for as it measures the degree to which public and private stakeholders are willing to invest resources in T&T relative to other parts of the economy.

International Openness (4 indicators): This pillar measures how open a country is to visitors and providing travel services. Developing a T&T sector internationally requires a certain degree of openness and travel facilitation. Restrictive policies such as cumbersome visa requirements diminish tourists’ willingness to visit a country. Components measured in this pillar include: the number of bilateral air service agreements that the government has entered into, which affects the availability of air connections to the country; and the number of regional trade agreements in force, which indicates the extent to which it is possible to provide world-class tourism services. Financial openness is also measured as the free flow of capital is important for cross-border trade and investment in T&T services.

Price Competitiveness (5 indicators): This pillar measures how costly it is to travel or invest in a country. Lower costs related to travel in a country increase its attractiveness for many travellers as well as making its T&T sector more appealing to investors. Among the aspects of price competitiveness taken into account in this pillar are: airfare ticket taxes and airport charges, which can make flight tickets much more expensive; the relative cost of hotel and short-term rental accommodation; the cost of living, represented by purchasing power parity; and fuel price costs, which directly influence the cost of travel.

Air Transport Infrastructure (4 indicators ): Air connectivity is essential for travellers’ ease of access to and from countries, as well as movement within many countries. In this pillar we measure international and domestic air route capacity and quality, using indicators such as available seat kilometres, the number of operating airlines and the efficiency of air transport services. The extent to which a country’s airports are integrated into the global air transport network is also measured.

Ground and Port Infrastructure (7 indicators): This pillar measures the availability of efficient and accessible ground and port transportation to important business centres and tourist attractions. Sufficiently extensive road and railway networks, indicated by road and railway densities, as well as road, railway and port infrastructure that meets international standards of comfort, security and modal efficiency are vital to enabling a T&T economy. This pillar also accounts for the efficiency of and access to public transport services such as underground rail systems and taxis as these are regularly used by visitors and T&T employees, especially in urban locations.

Tourist Service Infrastructure (5 indicators): This pillar measures the availability and competitive provision of key tourism services such as accommodation and car rentals. The availability of sufficient accommodation, resort and leisure facilities can represent a significant advantage for a country. We measure the level of tourism service infrastructure through the number of hotel rooms and short-term rental units, complemented by the extent of access to services such as car rentals and ATMs. Competition among tourism services is also accounted for because it plays a role in the pricing and quality of services.

Natural Resources (5 indicators): This pillar measures the available natural capital as well as the development of outdoor tourism activities. Natural capital is defined in terms of the landscape, natural parks and richness of fauna. Countries with natural assets may be better positioned to attract tourists. In this pillar, we include several attractiveness measures, including the number of United Nations Educational, Cultural and Scientific Organization (UNESCO) natural World Heritage Sites, the richness of fauna and biodiversity in the country and the scope of protected areas, which indicates the extent of national parks and nature reserves. Digital Demand [i] for nature and relevant activities is also measured as an illustration of how well known and effectively marketed a country’s natural assets are.

Cultural Resources (6 indicators): This pillar measures the availability of cultural resources such as archaeological sites and entertainment facilities. To an extent, this pillar captures how cultural resources are protected, developed and promoted. Included here are the number of UNESCO cultural World Heritage Sites, the number of large stadiums that can host significant sport or entertainment events, and a measure of Digital Demand for a country’s cultural sites and entertainment. Also included are the number of UNESCO Creative Cities, representing efforts to protect and develop cultural and creative activities and industries in urban centres.

Non-Leisure Resources (4 indicators): This pillar measures the extent and attractiveness of factors that drive business and other non-leisure travel, which account for a significant share of T&T revenue and profit. We have included the presence of major multinational corporations and cities that are highly integrated into the global economy as proxies for business travel. Meanwhile, the number and quality of a country’s universities play an important role in attracting academic travel. Lastly, online searches related to business, academic and medical travel are also measured to imply global interest in a country’s non-leisure resources.

Environmental Sustainability (15 indicators): This pillar measures the general sustainability of an economy’s natural environment, protection of its natural resources, and vulnerability to and readiness for climate change. The importance of the natural environment in providing an attractive location for tourism cannot be overstated, so policies and factors enhancing environmental sustainability are an important aspect of ensuring a country’s future attractiveness as a destination. Water stress, marine and air pollution, loss of forest cover and the degree of extinction risk for species provide an insight into the status of a country’s environment. Additionally, public- and private-sector protection of the environment and national parks and the ratification of international environmental treaties indicate the degree to which the government and the private sector are preserving the natural assets that generate nature-based T&T. Lastly, metrics related to greenhouse gas emissions (GHGs), the use of renewable energy, investment in green infrastructure and exposure to weather-related events are important in understanding how exposed, ready and willing a country is to address climate change, which in itself is one of the greatest long-term threats the T&T sector faces.

Socioeconomic Resilience and Conditions (7 indicators): This pillar captures the socio-economic well-being and resilience of an economy. Gender equality, inclusion of a diverse workforce, greater workers’ rights and reducing the number of young adults not in education, employment or training are all important for improving employee productivity and creating a larger and higher-quality labour pool. This is particularly important for the T&T sector as it often employs an above-average number of women, members of minorities and youths. Investment in and greater coverage of social protection services such as child and maternity support, unemployment and disability benefits are also key to making the labour market more resilient in the face of economic downturns and other shocks. Furthermore, combined with access to basic resources, as measured by poverty rates, all of the factors above play a role in broader social and economic stability, which affects investment in T&T.

Travel and Tourism Demand Pressure and Impact (7 indicators): This pillar measures factors that may indicate the existence of, or risk related to, overcrowding and demand volatility, as well as the quality and impact of T&T. The T&T sector does not operate in a vacuum. Unmanaged tourism development can lead to destinations operating beyond their capacity, leading to overcrowding, damaged natural and cultural resources, strained infrastructure, increased housing prices and overall reduced liveability for local residents. If left unaddressed, such issues can lead to a backlash by residents towards tourism, reduced visitor satisfaction and lower overall destination attractiveness, all of which negatively affect T&T development. Aspects measured include length of visitor stays, tourism seasonality, proxies for the dispersion of tourism, and the distribution of T&T economic benefits to local communities. Such factors can all help mitigate these issues by lowering the strain on destination capacity, creating resident buy-in, promoting more travel options and markets, and enriching travellers’ experiences.

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Measure these 9 top KPIs for travel management success

What types of kpis for travel management should you be measuring, financial metrics, how travelperk makes tracking travel spend simple, quality metrics, business metrics, sustainability metrics, 9 top kpis for travel management, 1. booking tool adoption.

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2. use of approved methods of payment, need to measure the right metrics for your business travel program, create a travel policy that works for your company, 3. percentage of bookings made within policy, 4. savings from corporate travel discounts, ready to enjoy cost savings on business travel, 5. traveler satisfaction, 6. percentage of changes, rebookings, and cancellations.

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7. percentage of advance bookings, 8. number of travel incident reports, 9. carbon footprint.

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UN Tourism | Bringing the world closer

• Handbook on Key Performance Indicators for Tourism Marketing Evaluation

The ETC/UNWTO Handbook on Key Performance Indicators for Tourism Marketing Evaluation presents a comprehensive overview of performance indicators for tourism marketing evaluation. It provides a framework for understanding contemporary marketing evaluation, how to measure results from marketing and promotional activities, and how to evaluate overall marketing effectiveness within the context of business or destination impacts. This handbook aims to be a user-friendly and accessible guide that provides a methodological framework and practical guidance on how to use performance indicators. Complemented with a number of case studies and best practice examples, the handbook offers both a theoretical and practical approach to guide national and destination management organizations towards better digital marketing evaluation.

ISBN : 978-92-844-1852-7

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Tourism: Key Performance Indicators

by Jeff Fulton

Published on 26 Sep 2017

Successful companies focus on goal achievement. But goals may be elusive, especially in staff-intense tourist-oriented service industries, unless the goals are broken down enabling each stakeholder to identify with a specific mission.

Key performance indicators (KPIs) quantitatively measure an organization’s performance on various factors that, when taken together, will determine goal achievement. They identify areas where improvement is needed. In tourism, a goal may be set to increase visitor revenues by a certain percent. To reach that goal stakeholders agree to measure factors that must be achieved.

Tourism KPIs

KPIs vary by company and product type. An airline may set a monthly goal to be on time 90 percent of the time. A key performance indicator will be the number of early-morning flights that leave on time as they set the pattern for the day. In a restaurant a goal may be to serve 5,000 meals in a month. A key performance indicator may be the number of daily reservations taken. A destination may measure daily tourist arrivals at the airport.

Customer Satisfaction KPIs

Many service-oriented tourism industries depend on customer surveys and feedback sessions to measure future revenue performance. These surveys provide early indications of service shortfalls and allow corrective action.

KPIs are often prominently displayed for all employees and management to see every day. Usually called a “dashboard,” the measurements are entered daily and graphed so daily performance is easily evaluated, as is the progress toward goals.

KPIs focus all members of the organization on quantitative measurements that are actionable. Every employee knows what measurement they can positively influence, thereby focusing the entire organization on goal achievement.

Essential KPIs for Measuring Success in Destination Marketing

As the world of travel and tourism becomes increasingly competitive, destinations must continuously measure and analyze their marketing efforts to ensure they are meeting their goals and objectives. Key performance indicators (KPIs) are an essential tool in measuring the success of destination marketing efforts. By tracking and analyzing KPIs, destinations can make data-driven decisions that help them achieve their marketing goals and ultimately, drive more visitors to their region. In this blog post, we'll explore some of the most important KPIs in destination marketing and why they matter. Visitor Volume Visitor volume is the number of people who visit a destination during a specific period. It is a fundamental KPI because it indicates the level of interest in a destination and is often used to measure the overall success of a destination's marketing efforts. By tracking visitor volume, destinations can gauge the effectiveness of their marketing campaigns and adjust their strategies accordingly. Revenue Generated Revenue generated is the total amount of money generated by visitors to a destination. This KPI is crucial because it directly impacts the local economy. By tracking revenue generated, destinations can assess the effectiveness of their marketing efforts and identify opportunities to increase visitor spending. Occupancy Rates Occupancy rates measure the percentage of available accommodation that is occupied by visitors. This KPI is essential for destinations that rely on overnight visitors, such as hotels and resorts. By tracking occupancy rates, destinations can monitor the demand for accommodations and make informed decisions about future development and marketing efforts. Length of Stay The length of stay is the average number of nights that visitors spend in a destination. This KPI is crucial because it directly impacts revenue generated by the local economy. By tracking the length of stay, destinations can identify opportunities to increase visitor spending and create targeted marketing campaigns to attract visitors who are likely to stay longer. Return Visitation Return visitation measures the percentage of visitors who return to a destination. This KPI is essential because it indicates visitor satisfaction and loyalty. By tracking return visitation, destinations can assess the effectiveness of their marketing efforts and make informed decisions about future marketing campaigns. Social Media Engagement Social media engagement measures the level of interaction between a destination's social media content and its audience. This KPI is essential because it indicates the level of interest in a destination and is often used to measure the effectiveness of social media marketing efforts. By tracking social media engagement, destinations can make informed decisions about the type of content they share and the platforms they use to engage with their audience. In conclusion, KPIs are a critical component of destination marketing efforts. By tracking and analyzing KPIs, destinations can make data-driven decisions that help them achieve their marketing goals and ultimately drive more visitors to their region. Visitor volume, revenue generated, occupancy rates, length of stay, return visitation, and social media engagement are just a few of the essential KPIs that destinations should be tracking to measure the success of their marketing efforts. By prioritizing these metrics and using them to guide their marketing strategies, destinations can create more effective campaigns and ultimately drive more visitors to their region.

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