Before investing in sales, an accommodation business needs a comparable view of its channels.
A common basis for comparison
To assess its channels, a hotel needs to begin with comparable information. The period, room type, length of stay and final price all affect the picture. Comparing a commission percentage with the cost of an advertisement is insufficient.
Which costs to include
Direct sales may involve advertising, systems, payment and service costs. Other channels need to be assessed for their respective commissions, charges and commercial terms. Allocate expenses consistently and take care to avoid counting the same cost twice.
Demand matters
An additional booking and a booking that has simply moved from another channel do not have the same effect. The assessment should also account for cancellations, refunds and the possibility of an ongoing guest relationship.
The first practical step
Choose a specific period and record realised revenue, relevant expenses and room nights for each channel. Note any gaps in the information. The amount remaining after sales costs is a useful starting point, but accommodation operating costs must still be deducted before assessing operating profit. This evidence can help frame a more precise question for the next commercial decision.