Today's Revenue Management thought:-

The true cost of acquisition…..

The cost of acquisition for hotels using Global Distribution Systems (GDS) and Online Travel Agencies (OTA) is a crucial factor that affects a hotel's overall profitability and revenue management.

Understanding these costs is essential for hotels to make informed decisions about their distribution strategies.

Both GDS and OTAs come with acquisition costs in the form of commissions, setup and maintenance, marketing, and additional services. These costs can significantly impact a hotel's profitability. Hotels must carefully analyze the ROI from these channels, considering the costs and the revenue generated. It's also crucial for hotels to negotiate favorable terms with both GDS providers and OTAs and to continuously monitor the performance and cost-effectiveness of each channel to strike the right balance in their distribution strategy.

Have a profitable week !

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