Marketing outlays: Important intangible assets in the hotel industry?

The purpose of this study is to examine the effect of marketing expenditures (outlays) on hotel firms' value. The authors argue that marketing expenditures are important intangible assets that are related to service innovation, customer satisfaction, customer loyalty, and organizational practices, which in urn influence future profitability and value of the firm. Findings suggest that marketing outlays constitute an important intangible asset in the hotel industry and that such expenses behave differently from other expenses; and more importantly, they are able to generate future benefits.