“Distribution is becoming increasingly complex and expensive. Ultimately, the questions facing that owner or manager is, ‘What will the cost be to acquire the booking and is that cost reasonable?” explained Cindy Estis Green, CEO and co-founder of Kalibri Labs and moderator of the Consumer Innovation Forum session at the American Hotel & Lodging Association’s Annual Fall Meeting in New York earlier this month. A year and a half ago, AH&LA established the forum with the express purpose of educating owners and operators on the changes that were quickly transforming distribution and the digital marketplace. The forum is made up of hotel brands, ownership groups, and management companies with the brands having the largest representation. Its work is ongoing. “Our research suggests that the rate of commissions being paid by hotels in return for bookings is rising at twice the rate of revenue growth. When you factor in related sales and marketing costs, hotels can be paying upward of 30 percent of room revenues for the acquisition,” Estis Green said. Get the full story at Lodging Magazine