How is your Distribution Health Score calculated?
The Distribution Health Score (DHS) is Fornova DI's proprietary indication of your distribution health and its changes over time. In general, the score for each property starts with 100 and it decreases based on any rate parity issue or availability issue we find.
The calculation of the score is performed on a daily basis; each shop with rate parity issues or availability issues found will influence the Distribution Health Score of a property, so in order to improve the score, your property needs to improve its performance.
Calculating the score
The way we calculate the DHS is complicated and consists of many components. Every shop has a weight, but lose cases are the most influential. There are several parameters that influence the weight of a shop on the score:
Lose severity - the percentage of price difference of a shop. The higher the price difference, the more influence on the score.
Offender - different offenders (OTAs) reduce the score differently (have different weights).
Different days - closer to the check-in day - a bigger influence on the score.
Source values - the source of the data (provider or channel) reduces the score differently; Meta Search Engines have less influence than OTAs direct websites.
Availability:
- If OTA is not available while Brand.com is available - no reduction;
- If Brand.com is not available while OTA is available - constant reduction, the risk of overbooking.
Where the influencing cases can be found
There are several ways to find out what affects your score. First of all, you can check Home Page, where you are able to see the cases that influence your score the most. But please mind that Home Page shows only the Lose cases either with OTAs or on MSEs, Beat cases are not displayed on the Home Page.
Also, you can use the options on the panel to review the cases in detail.
The section “Contracted OTAs” shows disparities that affect the score significantly since these are the OTAs that you have distribution agreements with.
BML distribution display the parity situation with each of the Contracted OTAs. Also, you can see TOP KPIs, that shows the number of severe issues which influence the score greatly.
The section “Non-Contracted OTAs” also displays the cases that can impact the score: severe issues, constant offenders, and BML distribution for each of the Non-Contracted OTAs.
In the section "Direct - Brand.com Sold Out" you can observe the cases where your price is not available on Brand.com site but appears elsewhere.
You can also find the same information using the “BML” section. The dashboard gives you an unfiltered view of the OTA & MSE BMLs.
Kindly note that Beat shops are also considered as disparities and they are reducing the score. Beat shop weights more if the price difference is higher. But of course, Lose shops have higher weights than the Beat shops and they influence the score greatly.
The Distribution Health Score is being influenced by all the parameters mentioned above and as a result, it decreases with any rate parity issue or availability issue found.