NPS, or Net Promoter Score, is a metric used by the hotel industry to measure customer loyalty and satisfaction. It is calculated by asking customers to rate their level of satisfaction with their experience and then subtracting the percentage of customers who responded with a negative review from the percentage of customers who responded with a positive review. The result is the Net Promoter Score, a number between -100 and +100 that tells hoteliers how likely their customers are to recommend their hotel to others.
Any NPS score above 0 is generally considered good for a hotel, while a score of 40 or higher is considered to be excellent.
The formula for calculating the Net Promoter Score of a hotel is: NPS = % of Promoters - % of Detractors
For example, let's say a hotel surveyed 100 customers and found that 50 of them were Promoters (rating their experience 9 or 10 out of 10), 40 were Passives (rating their experience 7 or 8 out of 10), and 10 were Detractors (rating their experience 6 or below out of 10). The Hotel's Net Promoter Score would be calculated as follows:
NPS = 50% (Promoters) - 10% (Detractors) = 40
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