distribution costs
What Are Customer Acquisition Costs and Why Is It Important to Calculate Them?
Dr. Meng-Mei Maggie Chen | July 21, 2021
By Dr. Meng-Mei Maggie Chen This article lays out why it's important to differentiate distribution costs from customer acquisition costs (CAC). Distribution costs refer to commissions paid to travel agents, OTAs, discounts to tour operators, etc. Whereas customer acquisition costs include the distribution costs, website-related costs, sales & marketing department salaries (after all, they are here to acquire customers), social media costs, advertising, loyalty and brand-related expenses, channel manager fees, etc. Why can't we calculate the customer acquisition costs? Because there is no account called "customer acquisi...
2019 Plea to Hotel PMS Providers for Distribution Cost Tracking Functionality
Patrick Landman | January 18, 2019
By Patrick Landman Over the last few years there has been much discussion in the the world of hotel revenue management on managing GOPPAR and NREVPAR over only REVPAR. Understanding the cost of distribution is vital to the financial success of every hotel. For this we would need our systems to support us in registering and calculating such costs. Unfortunately many hotel Property Management Systems (PMS) have not yet evolved sufficiently in this area. In a discussion on my last post on the Hotel P&L the topic came up. I have made this plea various times already to PMS providers. So I am using the start of 2019 to make a public plea ...
HeBS Digital Offers Hoteliers a Guarantee to Lower Distribution Costs by 20%
HeBS Digital | January 18, 2017
Summary: As part of a new promotion to help hoteliers improve profitability, HeBS Digital is offering a guarantee to lower distribution costs by 20%, with the purchase of a full-service website design and digital marketing package. NEW YORK, NY — January 18, 2017 — With supply predicted to outpace demand in many major markets, and as Airbnb continues to steal share from hotels (STR and CBRE), HeBS Digital wants to help hoteliers lower distribution costs, the only realistic option for improving the bottom line in 2017. HeBS Digital, the firm that helps hoteliers drastically increase direct bookings and lower overall distribut...
