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January 2020 Market Kalibration: Hotels Get More from Brand.com 

The Brand.com channel continues to improve in profitability metrics, including growth in overall contribution and declining costs per booking, according to recent data from Kalibri Labs. The percent of business booked through Brand.com channels increased 10.4% year over year to 25.8%, while the cost per room night booked through Brand.com declined 4.7% to $7.92, making it one of the lowest cost of acquisition channels. 

The Contribution to Operating Profit and Expense percentage (COPE %) from the Brand.com channel was 94.3%, up 0.4%. This means that for every $1 paid by a guest, the hotel kept roughly 94 cents after subtracting customer acquisition costs.

In addition to double-digit booking increases, Brand.com’s COPE % by channel increased 0.4% and the channel’s acquisition cost fell 4.7%. 

Download the full Market Kalibration report

Other Notable January Trends

Super Shifts: The largest impact in January was felt by the Super Bowl, which took place February 2 after a weeklong NFL-themed event in and around Hard Rock Stadium in Miami Gardens, Florida. 

The impact of Super Bowl 54 moving from Atlanta in 2019 to Miami in 2020 was drastic and, since Miami is a high-end market (Hotel Collected RevPAR in Miami is traditionally more than double that of Atlanta's), the event affected averages across the U.S. The shift from a relatively lower RevPAR market to a higher RevPAR market, and the fact the Super Bowl fell on February 2 vs. February 3 in 2019, likely elevated January’s results overall. Miami experienced a 15.3% year-over-year increase in Guest Paid RevPAR, to $197.63, while Atlanta experienced a 12% decline in Guest Paid RevPAR, to $81.42.

Guest Paid RevPAR Growth* top 3 markets (YOY)

+15.3% | Miami
+10.7% | Washington, DC
+9.3% | Chicago

Coronavirus Coming: January’s results do not show an effect of coronavirus, which began making an impact in early February, but it is expected that international hub markets will be affected first and greatest. Recent changes in cancellation policies by the airlines could lead to more cancellations and a shorter booking window.

The Shutdown Effect: The government shutdown lasted from December 22, 2018, to January 25, 2019, and is likely a driver behind big gains in Washington, D.C. – occupancy and all ADR metrics were up in January 2020.

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