Ten KPIs that show whether a travel agency is healthy, how to calculate each one, a worked example, and how to review them with your team.
1. The 10 KPIs
Track a small set consistently rather than everything occasionally. These ten cover sales, profit, service and loyalty.
| KPI | Formula or definition | What it tells you |
|---|---|---|
| Leads | New enquiries in the period | Is marketing working? |
| Lead source mix | Leads by channel | Where to invest time and budget |
| First response time | Time from enquiry to first reply | Speed, which wins bookings |
| Conversion rate | Bookings won ÷ leads × 100 | Sales effectiveness |
| Average booking value | Booking revenue ÷ number of bookings | Upselling and product mix |
| Gross margin | (Revenue − supplier cost) ÷ revenue × 100 | Pricing discipline |
| Revenue per agent | Booking revenue ÷ number of sales staff | Team productivity |
| Repeat client rate | Clients who booked before ÷ all clients × 100 | Loyalty |
| Cancellation rate | Cancelled bookings ÷ confirmed bookings × 100 | Booking quality |
| Outstanding balances | Client money due and overdue | Cash-flow risk |
2. A worked example
Illustrative numbers for one month.
One month at a small agency (example)
- 1Leads: 120; bookings won: 24, so conversion = 24 ÷ 120 = 20%
- 2Booking revenue: US$48,000, so average booking value = 48,000 ÷ 24 = US$2,000
- 3Supplier cost: US$39,360, so gross margin = (48,000 − 39,360) ÷ 48,000 = 18%
- 4Three sales staff, so revenue per agent = US$16,000
3. Review them monthly
Look at the same KPIs at the same time every month, compare with the previous month and the same month last year (travel is seasonal), and pick one or two to improve. Share the numbers with the team, and turn the sales KPIs into personal monthly targets so everyone sees their progress.
Frequently Asked Questions
What is the most important KPI for a travel agency?
There isn't one, but conversion rate and gross margin together tell you most: whether you win enough of your enquiries, and whether those bookings make money.
How often should a travel agency review its KPIs?
Monthly for the business as a whole, and weekly for sales activity such as leads, response time and follow-ups.