Hotel Marketing at the Property Level
By Robert Mandelbaum Director of Research Information Services, CBRE Hotels' Americas Research | November 09, 2014
The introduction of technology has had a dramatic influence on hotel sales and marketing strategies and tactics in recent years. What was a very personal, relationship driven function has now evolved into a very sophisticated, statistical driven process. Revenue management and control of distribution channels now dominate the time spent by most lodging industry marketing personnel.
Much of the revenue management and distribution channel monitoring is automated, and frequently occurs at corporate or regional offices. However, these changes have also impacted the dollars spent at the property level within the Sales and Marketing Department.
In recent years, investment in technology within the Sales and Marketing Department has led to shifts in marketing strategies, and despite the expanded use of automation, slight increases in salaries, wages, and benefits.
To gain a better understanding of how U.S. hotels are deploying their unit-level marketing dollars, we examined Sales and Marketing Department expense data PKF Hospitality Research's (PKF-HR) annual Trends® in the Hotel Industry survey of operating statements. The study sample consisted of a same-store set of 952 properties that reported data each year from 2007 through 2013. The sample consisted solely of hotels that have on-site sales and marketing personnel.
Since the sample consisted of both franchised and independent properties, franchise related fees and assessments were excluded from part our analysis so we could focus exclusively on unit-level expenditures and tactics.
In a separate analysis, we studied just the franchise related costs of those properties affiliated with a chain.
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