What is Gross Booking Value (GBV), and how do you calculate it?
In short – Total monetary value of all bookings made through the marketplace. A key marketplace metrics you should track.
Gross Booking Value (GBV) Formula
GBV = Sum of All Booking Values During the Period
Gross Booking Value represents the total value of all bookings or reservations made via the marketplace over a specific period. This metric is commonly used in marketplaces dealing with services like travel, accommodations, or rentals.
Monitoring GBV helps assess the overall performance and growth of the marketplace. It reflects the platform's ability to generate high-value transactions and guides strategic decisions on market expansion and service offerings.
How can you find your Gross Booking Value (GBV)?
You should generally be able to calculate your Gross Booking Value (GBV) with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.