Revenue Management

Keeping up with the changing dynamics of customer acquisition costs


The cost to acquire a guest goes beyond commissions paid to third-party distribution channels, but how far it goes depends on who you ask.

The issue is that there are no industry standards on how to look at customer-acquisition costs, or even what to include, Paul Mengacci, VP of finance and analytics at Prism Hotels & Resorts, said on a panel at the Hotel Data Conference.

“It becomes math: What do you include in acquisition costs? Ultimately it’s about how you get to that net (revenue per available room) number. People look at very different methods and metrics,” he said.

“Does the cost of acquisition stop at booking? You do have to look at labor and tech, and how you generate ROI in other areas. It opens a can of worms, but you have to look at it from multiple points … independently and then put them back together.”

Market Data

Loyalty contribution continues to rise across U.S. hotel bookings

Aug 26, 2019 / Kalibri Labs

The percentage of total room nights booked by members of brand loyalty programs increased 4.4 percent year-over-year to 53.9 percent of all room nights booked at hotel brands with existing loyalty programs.

When looking at bookings by source of business, and OTA Bookings continued their dueling track meet, each with 6.6% YTD growth YOY, according to Kalibri Labs’ U.S. Hotel Industry Performance Overview (HIPO).

Guest-Paid RevPAR and COPE RevPAR decreased 1.6 percent and 1.39 percent YOY, respectively, driven by occupancy declines of 1.9 percent YOY, and indicating only modest ADR growth.

Kalibri Labs: Hotel Performance Trends Summary

Digital Marketing

Hotel marketers on targeting guests, growing reach

Aug 26, 2019 / Social Media

Life as a hotel marketer in the digital age involves a lot of cutting through the clutter in managing advertising campaigns and gaining exposure with guests over social channels.

But maintaining a responsive website and cultivating an engaging social media presence doesn’t mean traditional marketing techniques have been retired.

Lori Kiel, chief revenue and marketing officer at The Kessler Collection, said her company has 600,000 email subscribers, which makes email marketing a cornerstone of her strategy, along with ensuring Kessler hotels are easy to find via search.

Yet, as the average web page or email inbox is saturated with advertisements, it can be discouraging to spend too much time thinking of the perfect digital campaign to reach guests.


New Four Seasons app offers custom-build travel itineraries

Four Seasons Hotels & Resorts
Four Seasons Hotels & Resorts

A new trip planning itinerary feature means it is simpler than ever for Four Seasons guests to customize a stay exactly to their preferences, all in the palm of their hand.

Every moment of a Four Seasons stay can now be seamlessly curated in one place from start to finish using the Four Seasons App, from ordering an in-room meal to requesting a morning newspaper, reserving a spa treatment, booking once-in-a-lifetime adventures in the world’s most captivating locales, arranging transport or securing a hard-to-come-by dinner reservation. All while in contact with a concierge on-call.

A new elegant and modern App layout also makes arranging activities (on-or-off-property) simple and intuitive, with scheduled items conveniently displayed on the in-App itinerary.

Digital Marketing

Mapping your hotel’s 2020 digital marketing budget


It’s budgeting season, which means your hotel is probably ready to start planning how, when and where you’ll be investing during 2020.

Let’s start with multi-channel marketing, which is a hot topic nowadays. Clients often ask me: should we invest in search marketing, display advertising, and/or metasearch advertising? Or are we best allocating more budget for social media advertising?

In truth, there isn’t one standard way to divide your marketing budget up - it really varies from property to property. However, adopting a multi-channel approach is best to expand your reach and target different customers throughout their travel journey.