Incremental revenue

Definition

Revenue that would not have existed without the action being measured — the bookings a campaign, channel or rate genuinely added, on top of what the hotel would have earned anyway.

What it tells you

The true return of a marketing or pricing move. Gross campaign revenue flatters every promotion; incremental revenue subtracts the baseline (demand that was coming regardless) and the discount handed to it. A campaign is profitable when its incremental revenue exceeds its cost — not when its booking count looks good.

How to track it

Establish the baseline first: the pace the dates were on before the action, last year’s same-point position, or an untouched control period. Incremental = actual revenue minus baseline revenue, minus the discounts absorbed by baseline demand. The cleanest read comes from actions with a defined start, a defined audience and a fenced offer.

Where it fits

It is the yardstick of data-driven marketing and the antidote to cannibalization. The Academy’s promo-timing lesson, Marketing and RM in concert, applies the same discipline; the leadership track makes it the axis of its campaign-ROI lesson for marketing leaders.