Hotel Revenue Acquisition Costs

Based on a recent study over 3 years, released by The Hospitality Asset Managers Association (HAMA) it was found that Hotel revenue acquisition costs have far outpaced revenue growth. It specifically looks at both the external costs of brand allocations (for marketing, advertising, major promotions, loyalty programs, national and global sales offices) and third party commissions (for group & transient bookings) as well as the internal costs of marketing and sales programs, including local marketing, sales staffing and other expenses, including reservations staff.

Total customer acquisition costs rose by 23% while brand allocations grew by 37%, and third party commissions by 34%. As a result, properties now control less of their marketing fund (44% vs. 49% in 2009). It is thus critical to understand and then control external costs, including the costs of customer acquisition.

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