Whether the booking costs are transaction-specific as in commissionable OTAs or GDS, or there are cross-channel costs via social media, franchise fees and even labor for sales and marketing, the total costs for acquiring our guests are increasing over time.

Revenue booked directly through brand channels such as brand.com, the brand app or brand reservations call centers provides a hotel with a 10% to 25% rate premium as compared to revenues booked through OTAs or the GDS. The ADR premium helps to build our bottom line.

As mentioned in Kalibri Labs’ 2018 “The Costs and Benefits of Loyalty” report, the ADR for member rate/loyalty bookings “reflects a solid premium compared to OTA bookings” (after acquisition costs are removed), and grew to 9% in 2018, up from 8.6% in 2016.

Report: Book Direct Campaigns 2.0: The Costs and Benefits of Loyalty 2018