What Barter Is ?

• In the hospitality industry, barter is the exchange of hotel credit for advertising and marketing services.

• Barter is a serious business, a $20-billion industry. The Wall Street Journal states that 80% of Fortune 500 companies have successfully used barter as a financial tool.

• Hotel companies, that have a highly perishable inventory, can gain the same benefits. Trading is an effective means by which hotel companies can expand their advertising budgets, while at the same time gaining full value for rooms that would otherwise go unsold.

 • Barter is a viable and intelligent way of doing business.

How Barter Benefits Hotel Companies

• The revenue of a lost room night can never be recovered. A Cornell study affirmed that discounting is not effective to generate business. Rather than discounting or taking a loss, hotels can use unsold rooms as currency for targeted advertising that reaches key markets.

 • Just a small percentage of unsold rooms can be converted into a substantial media campaign. For example, a hotel chain with 100 properties averaging 300-rooms per hotel that operate at 75% occupancy with a $150 ADR can create a $4.1 million media budget by trading just 1% of its unsold rooms. The trade credit buys advertising services (consumer and trade magazines, radio and television time, billboards and more) that the company would buy for cash, if the budget were not an issue. Many media companies trade their advertising services.

• With barter hotel companies gain new business, incremental revenue, and the potential for future cash business from corporate and media clients that utilize the credit. Companies use trade credit for individual and group accommodations that can help fill the hotels' during low demand periods.

 • With barter hotel companies gain new business, incremental revenue, and the potential for future cash business from corporate and media clients that utilize the credit. Companies use trade credit for individual and group accommodations that can help fill the hotels' during low demand periods.

 • Barter is a great way to:

 

O Expand advertising dollars  

O Get full value for unsold rooms, instead of discounting  

O Gain new customers  

O Increase revenue and repeat business from barter customers  

O Increase profit by impacting bottom line

 

Why Hotel Companies Work with Travel Promo

• Travel Promo is the only barter advertising and media placement firm in the US that specializes in the hotel and travel industry.   

• We understand the hotel business from the inside out. Our executives have more than 25 years of hotel sales & marketing experience.  

• We work in partnership with hotel sales and marketing teams and take great pride in the success of their campaigns.  

• We are all about service. We are a niche firm and are known for our responsiveness and initiative.  

• We take a sophisticated process and simplify it for our clients.