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Bookings

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Although the term bookings has multiple meanings, in the financial sense bookings are funds that are expected to be received from customers in the near future based on accepted orders or contracts. Cancellations, amendments and extensions can have a positive or negative impact on bookings. Bookings differ from sales, where money has been received for services or products provided. The lodging industry frequently uses bookings in their daily business, commonly classifying incoming reservations as room & asset bookings. Developing an accurate perspective on bookings is critical for effective financial management performance. Bookings must be properly accounted for or financial reports can appear grossly overstated. Public companies use bookings as a means to keep shareholders informed of future prospects and revenue targets. The term "derived bookings" is money received against previously posted bookings.



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