3
Sales and Marketing Department Expenses
Schedule 7 in the Uniform System of Accounts for the Lodging Industry provides the structure for the Sales and Marketing department’s expenses. These are divided into:
- Labor Costs and Related Expenses
- Other Expenses
This section highlights both, emphasizing accurate allocation and standardization.
Labor Costs and Related Expenses
Labor costs include all payroll and payroll-related costs:
- Salaries and Wages
- Service Charges
- Contracted, Leased, and Outsourced Labor
- Bonuses and Incentives
- Payroll Taxes, Supplemental Pay, and Employee Benefits
These should be allocated based on actual departmental effort, including shared services.
Other Expenses
Key examples include:
- Agency Fees
- Cluster Services
- Collateral Material (e.g. brochures)
- Complimentary Services and Gifts (e.g. VIP giveaways)
- Contract Services (e.g. outsourced consulting)
- Franchise and Affiliation Marketing and Royalties
- Loyalty Programs
- Media (e.g. PPC ads, TV, radio)
- Outside Services (e.g. Market Research, Outside Sales)
- Photography and Signage
- Trade Shows and Familiarization Trips
- Website Development and SEO
Each line item should be tracked carefully to assess cost effectiveness. Total Expenses is the sum of Labor and Other Expenses, and is presented under Undistributed Operating Expenses—Sales and Marketing in the Summary Operating Statement.
