April 16, 2018

CBRE: Hotel commissions vs. revenue trends are ‘alarming’

The hotel industry has been riding a long winning streak, with increasing occupancies, revenues and profits. But one area of concern has been alarming increases in some cost centers, especially commissions paid to third-party distribution platforms.

According to the CBRE Trends in the Hotel Industry report, commission expenses paid by hotels rose nearly 7% last year. And as the firm prepares its 2018 report, the trend appears to be continuing, says Robert Mandelbaum, director of research information services for CBRE Hotels’ Americas Research.

Duetto caught up with Mandelbaum recently to discuss the outlook for industry profit-and-loss statements during this year and beyond, with an emphasis on two areas: commissions and labor.

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