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Booking Propensity Scores

By October 23, 2023No Comments

What is a Booking Propensity Score?

A Booking Propensity Score is a data-driven metric used in various industries, including e-commerce, travel, hospitality, and marketing, to predict the likelihood of a customer or prospect making a booking or reservation for a product or service. It is typically based on historical data, customer behaviour, and various predictive modelling techniques.

So how does it work and how can it be used?

Data Collection: To calculate a Booking Propensity Score, relevant data is collected, which may include information such as customer demographics, past booking behaviour, website interactions, purchase history, and more. The data can be structured or unstructured.

Scoring: Once the model is trained, it can assign a propensity score to each customer or prospect. This score typically falls within a numerical range (e.g., 0 to 5), where a higher score indicates a higher likelihood of making a booking.

Segmentation: The propensity scores can be used to segment customers into different groups based on their likelihood to book. For example, customers may be categorised as high, medium, or low propensity.

Personalisation: Organisations can use these scores to personalise marketing efforts. Customers with a high booking propensity score may receive more targeted offers or incentives, while those with lower scores may receive different types of communication to nurture their interest.

What are the benefits of using Booking Propensity Scores?

Improved targeting: Businesses can allocate resources more efficiently by focusing marketing efforts on customers with a higher likelihood of booking, potentially leading to increased conversion rates.

Enhanced customer experience: Personalised offers and recommendations based on propensity scores can enhance the customer experience by providing relevant and valuable information.

Reduced marketing costs: By avoiding excessive marketing efforts directed at customers with a low propensity to book, organisations can save on marketing costs.

Optimised revenue: Identifying and nurturing customers with a high booking propensity can lead to increased revenue and profitability.

Data-Driven Decision-Making: Booking Propensity Scores provide a quantitative basis for decision-making, allowing organisations to make informed choices about resource allocation and customer engagement.

How can Radar help?

Radar will work with your customer data to apply a Booking Propensity Score to your customer data to support your marketing communications strategy. Customer data that can be used in the scoring usually includes: recency, frequency and value.

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If you would like to understand more about your data and how it can work harder for your organisation, we can help you…

  • Resolve your data challenges,
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  • Help you make speedy data driven decisions
  • Create smarter communications throughout the customer journey.

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