As Revenue Capture Declines, Real Estate Values Erode

Guests paid $191.1B to all U.S. hotels in 2022.

After removing wholesale fees of almost $6B that are taken off the top from online travel agencies (OTAs) and wholesale operators, U.S. hotels directly collected $185.3B.

Take another ~$10B for retail fees, channel, transaction & loyalty fees, the COPE revenue remaining is $180B. Another deduction of $17.2B in sales and marketing costs leaves the hotels with $158.7B in Net Revenue.

U.S. hotels spent a total of $32.4B
to acquire business in 2022.

Reference: Kalibri Labs

The Internet is democratizing demand, and most hotels haven’t caught up…

Not having a Property Direct strategy is destroying Revenue Capture and creating less bottom line margin for your hotel(s).

  • Social media may be a larger proportion of booking demand than OTAs in 5-10 years because it meets guests where they already are.

  • Connect with national & regional influencers in order to drive more demand. It just takes one post to change your hotel's demand.

  • Mobile has transformed how travelers plan, book, and experience their trips. From the convenience of booking accommodations to enhancing the in-stay experience, mobile devices are the indispensable tools for modern travelers.

  • Email & text marketing has been known as one of them the most powerful marketing mediums to consumers.

    There are new AI text & email tools that can be triggered based upon the weather or a current local event.