More marketing expenditures, better hotel financial performance?

Research output: Contribution to journalArticle

Abstract

This study employs hotel property-level data provided by Smith Travel Research to explore the effect of marketing expenditures on future financial performance. Four principal conclusions can be drawn based on our findings: (1) the marginal impact of marketing expense 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 relevant individual components provides incremental prediction power; and (4) other expenses have a negative impact on hotel profit, corroborating previous research findings.

Original languageEnglish (US)
Pages (from-to)88
Number of pages1
JournalJournal of Hospitality Financial Management
Volume16
Issue number1
DOIs
StatePublished - Jan 1 2008

Fingerprint

expenditure
marketing
income
prediction
profit
Hotels
Marketing
Expenditure
Profit
Financial performance
Prediction
Income
Revenue
Expenses
hotel industry
travel
effect
Incremental
Performance measures
Hotel industry

All Science Journal Classification (ASJC) codes

  • Finance
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

Cite this

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More marketing expenditures, better hotel financial performance? / Hua, Nan; O’Neill, John; Mattila, Anna S.

In: Journal of Hospitality Financial Management, Vol. 16, No. 1, 01.01.2008, p. 88.

Research output: Contribution to journalArticle

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