Calculating True Marketing Campaign ROI

Apr 12, 2017Business Cases0 comments

A Sabre PromoSpots GDS marketing campaign (€10,000 spend) was run between April 15th and 30thto boost BAR sales for weekday (Sunday-Thursday) stays in May. Did it work? Did sales through Sabre between the 15th and 30th of April for weekdays in May increase year on year? What was the ROI for the marketing spend?

Based on the above; Topline Return: €3,005; Net Room Revenue: €1,953 (based on 65% rooms margin); therefore ROI is a €8,047 loss. The marketing campaign did not work. With the utilization of the leading analytics provided by HotelIQ, the loss would have been prevented and the marketing funds would have been diverted to a campaign strategy that could have yielded at least a 10:1 return.

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