Bob Gilbert, CEO of HSMAI (Hotel Sales & Marketing Associates International), visiting Singapore to attend Asia Connect, the HSMAI Asia Pacific event which opened in Singapore this morning, quoted a study done recently by the Hospitality Asset Managers Association (HAMA) which showed that revenue acquisition costs outpaced hotel revenue growth from 2009 through 2012. “The study showed that customer acquisition costs are rising 2-3 times faster than RevPAR growth, that’s a trend to be concerned about. There is so much intermediation going on, so many emerging players. The hotel industry has become bifurcated and the hotel brand is no longer where people buy. The whole landscape of intermediaries has changed and added levels of expenses that weren’t there before. “Hotels have been paying those expenses and there has not been a re-allocation of expenses – questions such as what do you need to change at corporate office, or how do you reassess and reallocate pieces of customer acquisition costs? “Costs keep going up – Google search, and now charging for organic search. Some are charging hotels for content. Everyone’s found a way to make money and extract money from hotels and their valuation has been off the back of hotels.” Get the full story at WIT