The Bipolar World of Hotel Marketing
- I get the sense that the accountants who institute these ugly little fees guaranteed to upset customers and bring in short-term gains don't think in terms of lifetime value.
- I also wonder if hotel chain accountants are smart enough to measure the acquisition cost of each first-time guest. If they knew the big bucks they had just spent to put a bod in a bed, would they tack on all these hidden charges and risk never seeing the person again?
- Big surprises on a bill can mean bad word-of-mouth, which can be poisonous, especially with the instantaneous worldwide reach of the Internet.
- In direct marketing, it's standard practice to break even (if you're lucky) or lose money on the first sale and only start making profits on subsequent transactions.
- Successful marketers know that profits are to be made by delighting existing customers and persuading them to spend more money.