On The Books (OTB)

On the books (OTB) refers to the number of rooms or revenue currently confirmed for a future date. It represents the business you have already secured, providing a snapshot of your future occupancy before any new reservations are made.

Why does OTB matter in hotels?

In hospitality, OTB is a practical baseline. While forecasts describe what you aim to achieve, OTB shows what is currently confirmed. It often serves as a starting point for many revenue management decisions.

OTB specifically includes:

• confirmed reservations with a valid method of guarantee
• group blocks that have been definitely picked up

It typically excludes:

• tentative group holds that have not signed a contract
• cancelled bookings
• forecasted pickup (bookings you expect to get but don't have yet)

Monitoring your OTB can help you make decisions based on what is already secured, rather than assumptions. If you know how much revenue is currently confirmed for next month, you can review pricing, distribution, and marketing plans with clearer context.

For example, if your OTB for a specific weekend is significantly lower than usual, it may be a sign to stimulate demand through marketing or price adjustments. Conversely, if your OTB is unusually high far in advance, it can be a signal to re-check your pricing and availability strategy for the remaining rooms.

Ultimately, OTB can give you the visibility needed to move from reactive decision-making to a more proactive approach.

What is a good OTB for hotels?

To evaluate OTB, you first need to consider the timeframe you are analyzing.

This concept is often visualized as a "booking curve."

• Far out (e.g., 6 months prior): A low OTB, such as 10–15%, is often normal and healthy for leisure hotels.
• Close in (e.g., 1 week prior): That same 10–15% OTB would be more concerning and may indicate a potential demand gap.

Context is key. A "good" OTB figure depends on several variables. Here are the main factors that define what healthy numbers can look like for your property:

• Lead time: Lead time is how far away the date is, and it shapes your booking window.
• Property type: resorts often have longer booking windows (higher OTB early on) compared to airport hotels (lower OTB until the last minute)
• Seasonality: you can often expect higher OTB earlier for peak season dates compared to low season dates

What this means in practice

Imagine you run a seaside B&B. For a date in August (peak season), having 50% OTB by March might be standard. For a date in November (low season), having 50% OTB by March would be exceptional and could be a reason to review whether your offer is positioned too aggressively on price.

Therefore, it helps not to look at OTB in isolation. Instead, compare it to your historical data—specifically, what your OTB was for the same date at the same time last year. This comparison can help you understand whether you are ahead of or behind pace.

How do you calculate OTB?

You can calculate OTB for occupancy (rooms sold) or revenue.

OTB (Revenue) = Sum of the value of all confirmed bookings for a specific future period

OTB (Occupancy) = Sum of all confirmed room nights for a specific future period

Example:

You want to know your OTB for the night of December 31st.

• You have 15 reservations confirmed.
• The total value of these 15 reservations is €4,500.

OTB Occupancy = 15 rooms

OTB Revenue = €4,500

This means you have €4,500 currently confirmed for that night, regardless of whether you sell any more rooms between now and New Year's Eve.

How does OTB relate to other hotel KPIs?

OTB is often confused with final occupancy, but they serve different purposes. OTB is a snapshot taken before the stay date, while occupancy is the final result after the night has passed.

Here is how OTB relates to other key metrics:

OTB vs. Pickup

In this comparison:

• OTB: the total amount of business on the books right now
• Pickup: the change in OTB over a specific period (e.g., how many new bookings came in yesterday)
• Example: if your OTB is 50 rooms today and was 40 rooms yesterday, your pickup is 10 rooms

OTB vs. Pace

In this comparison:

• Pace: a comparison of your current OTB to your OTB at the same point in time for a previous year
• Example: if you have €10,000 OTB for Christmas today, and last year at this same time you had €8,000 OTB for Christmas, your pace is positive (+20%)

OTB vs. Forecast

In this comparison:

• OTB: the confirmed data you have on hand today
• Forecast: an estimate built from OTB plus what you expect to pick up
• In practice: forecasts often start with OTB, and clearer OTB data can make your forecasting process easier to manage and discuss internally.

What factors influence OTB?

Your OTB fluctuates based on several internal and external drivers. Here are the most common factors that influence your numbers:

• Seasonality and Holidays: High-demand periods often see bookings come in earlier, which can increase OTB sooner than low-demand dates.
• Pricing Strategy: Lower rates can bring bookings in earlier, while higher rates may slow booking activity, depending on demand and comp set behavior.
• Marketing Campaigns: Sending a newsletter or launching a promotion can correlate with short-term increases in pickup.
• Local Events: Concerts, conferences, or festivals can drive earlier bookings and create a higher baseline OTB for specific dates.
• Booking Restrictions: Applying a "minimum 3-night stay" can slow early pickup while changing the length-of-stay mix you attract.
• Cancellations: A wave of cancellations (e.g., due to bad weather forecasts) reduces OTB rooms and revenue.

How to improve OTB in your hotel?

While you cannot change the bookings you missed in the past, you can influence how your OTB develops for future dates. Improving OTB is not only about getting more bookings; it is also about shaping when bookings arrive and what mix of business you accept.

1. Monitor booking pace regularly

You can't improve what you don't measure. If you only look at OTB once a month, you may miss opportunities to react sooner.

Check your OTB at least weekly for the upcoming 90 days. Compare your current position against last year's performance. If you see a date where OTB is falling behind, you can consider triggering a marketing action. If you see a date where OTB is unusually high, you can review your pricing, restrictions, and channel strategy for the remaining rooms.

2. Use dynamic pricing to control the flow

Static price lists can make it harder to respond to changing demand. If your price stays too high, bookings may come in slowly compared with the market. If it stays too low, you may sell through inventory earlier than intended and reduce flexibility later.

3. Leverage your guest database

When OTB is low for a specific period, your past guests can be a useful audience to reach.

Instead of lowering prices publicly on OTAs (which can affect how your positioning is perceived), you can use email marketing to send a targeted offer to your database. You can segment guests who stayed during similar periods in the past and present them with a tailored package.

4. Adjust booking restrictions

Sometimes OTB is low not only because of price, but because of friction.

Review your minimum stay requirements or release periods. If you are requiring a 3-night minimum for a shoulder-season weekend and OTB is lagging, reducing or removing that restriction can make it easier for more guests to book shorter stays. In many cases, adjusting restrictions can expand the set of shoppers who can book, without changing your public rate.

5. Optimize your channel distribution

If your direct OTB is slow, it can help to confirm that you are maximizing visibility across the channels you want to rely on.

Check your PMS settings to ensure all room types are available on all connected channels. Sometimes, opening inventory on an additional channel, correcting mapping, or confirming your channel manager sync is working as expected can help remove availability gaps that slow bookings.