DEMYSTIFYING THE DIGITAL MARKETPLACE: THE DYNAMIC DISTRIBUTION LANDSCAPE
The digital marketplace has undergone a significant amount of change in the intervening years since Distribution Channel Analysis: A Guide for Hotels was published in 2012. What follows below is an excerpt from the follow-up to that book, Demystifying the Digital Marketplace: Spotlight on the Hospitality Industry co-authored by Cindy Estis Green and Mark Lomanno.
In 2015 U.S. hotels paid approximately $25 billion in overall customer acquisition costs on guest paid revenue of $145.4 billion. This guest paid revenue grew year over year, from $135.5 billion in 2014 to $145.4 billion in 2015. Guest paid revenue represents the revenue a guest actually paid for a hotel room including any commissions that were retained at the point of booking by a net/merchant intermediary or wholesaler.