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How Hotels Deal with Customer Acquisition Costs?


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There’s a reason the hotel industry has the highest cost of customer acquisition in the travel sphere. Actually, make that several reasons, according to panelists speaking Thursday during the Revenue Strategy Summit.

One is competition. 

“It’s very noisy out there,” Ash Kapur, VP of hospitality revenue management and distribution for Starwood Capital Group, said of the distribution space. 

“The barriers to entry are low,” he said, adding he meets with several travel tech startups every week.  

Lack of innovation is another. 

“The biggest challenge is we’re not creative enough. We’re looking outside our industry for creativity,” Kapur said. 

Innovation must come from inside and outside the industry, said Minaz Abji, executive VP, asset management, for Host Hotels & Resorts. 

But changing legacy systems might be the biggest reason, panelists agreed. 

“Our systems in a lot of cases are archaic. That means a lot of investment, a lot of constant investment. … Raising that kind of capital is very difficult,” Kapur said.

(Read more at HotelNewsNow.com)