Hotels urged to calculate guest acquisition metrics carefully
Finding customers in the most cost-effective way possible remains one of the most pressing challenges for the hospitality industry
Speaking during the "Reaching Customers: The Power of Partnerships" session at the 2024 International Hospitality Investment Forum, various panelists echoed the idea that both brands and online travel agencies need to be working to please both potential guests and hotel owners.
Key takeaways
- Hotel owners don't have a clear picture of customer acquisition costs by channel, including brand direct, OTAs and other third parties;
- Any considerations of cost of acquisition have to include a calculation on the lifetime value of a guest. While many OTA commissions are higher on a one-off basis, hotels that are able to turn those guests into repeat customers and higher-spending customers are poised for success.
- From a brand perspective, loyalty programs are "cheaper than the other distribution channels."
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