Performance & revenue
On the books
Also written: OTB
What On the books means
On the books (OTB) represents the total contracted, reserved, or committed revenue and occupancy already secured for future dates as of a specific point in time. It measures confirmed demand before the actual day of stay.
Formula
OTB Revenue = Confirmed Reserved Rooms × Agreed Room Rate
How it is used
Revenue managers monitor OTB pace against historical pickup, budget targets, and same-time-last-year (STLY) benchmarks. If OTB figures lag behind projected demand, operators adjust pricing down or launch targeted promotions to stimulate early bookings. Conversely, strong OTB pace signals high demand, prompting managers to yield rates upward, restrict discount channels, and enforce minimum length-of-stay controls to maximize total yield for peak dates.
Worked example
A 200-room boutique hotel reviewing July 4th performance on May 1st has 120 rooms reserved at an average rate of $250. The OTB occupancy is 60% (120 ÷ 200) and OTB revenue is $30,000. Comparing this to last year's May 1st OTB position of 45% occupancy informs the manager to raise rates for the remaining 80 rooms.
Common mistake
Focusing solely on OTB volume without accounting for historical cancellation rates and wash can lead to overestimating final revenue and mispricing remaining inventory.
Related terms
Frequently asked
+What does On the books mean in a hotel?
On the books (OTB) represents the total contracted, reserved, or committed revenue and occupancy already secured for future dates as of a specific point in time. It measures confirmed demand before the actual day of stay.
+How is On the books calculated?
OTB Revenue = Confirmed Reserved Rooms × Agreed Room Rate
+What is an example of On the books?
A 200-room boutique hotel reviewing July 4th performance on May 1st has 120 rooms reserved at an average rate of $250. The OTB occupancy is 60% (120 ÷ 200) and OTB revenue is $30,000. Comparing this to last year's May 1st OTB position of 45% occupancy informs the manager to raise rates for the remaining 80 rooms.
+What is the most common mistake with On the books?
Focusing solely on OTB volume without accounting for historical cancellation rates and wash can lead to overestimating final revenue and mispricing remaining inventory.