Owners’ views on hotel distribution profitability

September 22 2017

By Ines Blal, Cindy Estis Green, and Alexandre Sogno

Owners can use this straightforward assessment and these guidelines to manage room inventory.

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The year 2016 marked a new step in hotel distribution with the active participation in travel of Google, TripAdvisor and others entering the market with instant booking and other transactional models. Here’s our straightforward assessment and actionable guidelines for owners with regards to the management of their room inventory.

Asset managers have to be well-versed in the subject to be able to identify potential hidden costs. After all, as owners expect operators to generate direct bookings, management fees are computed on the basis of the “full average daily rate” and not on the “net ADR” (which is ADR minus transaction-related acquisition costs and general acquisition costs, plus ancillary spend).

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