Tying compensation to the margins realized by suppliers is a formula that is already showing up in the cruise industry, in airline frequent flyer rewards programs and in preferred-supplier agreements with consortia and other agency groups. What could drive hotels to follow that lead is the fact that, according to new research by Kalibri Labs, the cost of acquiring hotel customers through marketing and distribution channels is rising at twice the rate of hotel revenue growth, a trend that is not sustainable, even during the recovery. Kalibri CEO Cindy Estis Green said that among the options the lodging industry will have to consider to slow that trajectory is adopting a sliding commission scale for agents, a practice known as value-based booking. “I anticipate a time when commission ranges will flex depending on the day of week, time of year, lead time or other factors that influence the value of the booking,” Green said. “This method will ultimately result in lower acquisition costs for hotels and will create an incentive for business providers to work with hotels on getting them the type of business they need when they need it.” Get the full story at Travel Weekly