Title

More Marketing Expenditures, Better Hotel Financial Performance?

Keywords

marketing expenditure, decreasing marginal effects, hotel industry

Abstract

This study employs hotel property level data provided by Smith Travel Research (STR) to explore the effect of marketing expenditures on future financial performance. Three principal conclusions can be drawn based on our findings:1) the marginal impact of marketing expenditures on hotel financial performance one year ahead is decreasing; 2) property level gross operating profit,net operating income,and revenue in the hotel industry are persistent,indicating these financial performance measures have high prediction power from one year to the following year; 3) decomposing gross operating profit,net operating income,and revenue into their relevant individual components,respectively,provides incremental prediction power.

Publication Date

3-1-2009

Original Citation

Hua, N., Mattila, S. A. & O’Neill, J. (2009). “More Marketing Expenditures, Better Hotel Financial Performance?” The Tourism Tribune. 24(3), 82-89.

Number of Pages

82-89

Document Type

Paper

Language

Chinese

Source Title

Tourism Tribune

Volume

24

Issue

3

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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