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
Copyright Date
2009
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Hua, Nan; O'Neill, John; and Mattila, Anna S., "More Marketing Expenditures, Better Hotel Financial Performance?" (2009). Rosen Faculty Scholarship and Creative Works. 428.
https://stars.library.ucf.edu/rosenscholar/428