Hotels Are Paying for Guests They Already Own
In this article, Sabine Filoni examines a costly blind spot in hotel marketing: the tendency to spend heavily on channels that claim credit for bookings they did not truly generate. The article argues that common attribution models, especially last-click reporting, often overvalue paid media while masking “recycled demand” — bookings from guests who had already decided on a property before encountering an ad, OTA listing, or retargeting campaign. By unpacking how this happens, Filoni challenges hotels to rethink what marketing is actually driving new business and what is simply capturing existing intent at an unnecessary cost (by team Hospitality Net) The Hotel Marketing Problem According to STR, hotels spend an average of 2.5% of room revenue on marketing. For a property running a $100 average daily rate, that equates to $2.50 per occupied room. In an environment where a single targeted click can cost $3 or more, without any guarantee of a booking, it raises an important question: is the issue really budget size, or how that budget is being used? Across paid search, retargeting, metasearch, and OTA channels, hotels routinely pay to convert guests who had already made the decision to book them. Consider a family planning a spring break trip to Myrtle Beach. They discover a hotel through organic search or word of mouth, visit the website, and mentally select it as their top choice. However, like most travelers before booking, they continue comparing options. Days later, when they return to book, they click on a paid ad, metasearch listing, or OTA link for the same hotel and complete their reservation. In this case, the marketing channel receives credit for driving the booking, even though the guest had already chosen to stay at the hotel. At the same time, competitor hotels appear alongside the property throughout the booking journey, forcing hotels to continually pay to defend demand they had already earned. This is relatively common and one of the most significant and underexamined attribution problems in hotel marketing. Why Attribution Models Miss the Full Picture Most hotel marketing performance is measured through attribution models that assign credit for a booking to a specific marketing channel. In most cases, last-click attribution is used, which gives full credit to the final interaction before the reservation is completed. As a framework for reporting purposes, it’s practical, but using it as a reflection of guest booking behavior is sometimes misleading. Travelers rarely book immediately after discovering a hotel. Instead, they research across multiple devices, consult travel companions, return to OTA listings, and revisit the hotel’s own website multiple times before committing. A guest who first encounters a property on a mobile device and completes the booking a week later on a laptop (or whose spouse finalizes the reservation) will almost certainly be attributed to whichever channel appeared last, regardless of where the actual decision was made. The result causes performance reports and analytics to significantly overstate the effectiveness of paid channels. Campaigns appear to generate strong returns when they may primarily be
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