For the last 20-25 years, the hotel industry has been building up intermediaries, and it will take time and effort to change this relationship and reverse the trend. Brands are trying to wrestle back control, get more direct bookings, and depend less on intermediation. As financial executives focus more and more on the costs of sales and marketing, there is a trend to optimize business mix while taking into account the costs of acquisition. Some companies are taking action by rethinking measurements for their sales and revenue management teams – rewarding revenue net of acquisition costs. Other measures getting attention include COPE (Control to Operational Profit and Expenses). This measures the revenue left after direct costs triggered by the transaction are removed. These include retail commissions, wholesale commissions, loyalty costs, transactional fees, and channel costs. Net Revenue subtracts sales and marketing expenses (payroll, allocations from the brands, loyalty costs), providing the total cost of customer acquisition including the direct cost of the transaction. Sales people (along with marketers and revenue managers) must think about the relationship between revenue and its costs. For years customer acquisition costs were relatively static, but now they are very dynamic with more costs going to third parties for group and transient bookings. Until the industry can quantify, measure, and manage these costs, it will be difficult to find a solution. Get the full story at HSMAI