Study: At upscale hotels, guest acquisition costs are devouring room revenue growth – Tnooz

Between 2009 and 2012, guest acquisition costs for 104 North American luxury hotels was about the same as revenue growth (23%), says a study by HAMA.

Source: www.tnooz.com

The hotel distribution model has evolved in the digital era. Hotels have been ceding control of sales and marketing to a host of third parties. Today, third-parties control 56% of the marketing spend of the 104 upscale hotels measured in the study. If Hoteliers Want to Get Their Revenues Back, They Must Evolve Their distribution Model Too.

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