How much your business leans on a single channel or guest type.
👉 Measures how dependent a hotel is on one or more channels, guest segments, or product types to generate revenue. If it’s all riding on Booking.com… yeah, that’s a red flag.
📊 What is the Dependency Index?
This is a proprietary or strategic indicator that shows the degree of revenue concentration in certain distribution channels (e.g., OTAs), customer types (e.g., corporate, leisure), or room types.
It helps identify business vulnerability when most income relies on a few sources — making the operation more sensitive to sudden changes.
🧮 How is it calculated?
There’s no universal formula, but a common version is:
Revenue from main channel or segment / Total revenue × 100
A high value suggests heavy dependency.
Example: If OTA revenue accounts for 70% of total revenue, the Dependency Index is 70.
✅ Why is it important?
- Encourages risk diversification.
- Supports smarter distribution and pricing strategies.
- Leads to a more resilient and balanced revenue mix.
📘 Real example
A hotel sees that 80% of its revenue comes from a single OTA. If that platform increases commissions or removes visibility, the hotel may suffer a significant drop. Knowing this early helps shift towards direct bookings, corporate clients, or alternative distribution channels.
