PURPOSE
1. According to the Uniform System of Accounts (10th Edition Page 42), barter transactions are defined as non-monetary transactions that are settled through the provision of goods and services instead of using money. For the hotel industry, this means using rooms and/or food and beverage as currency of exchange.
2. Hotel Operators today are discovering that barter not only has financial advantages but also marketing benefits as well. The importance of profit to Owners and Investors demands a critical look at underused inventory and therefore Hotel Operators have a fiduciary responsibility to capitalize on the value of unused room inventory as a marketing tool i.e. trading hotel inventory for advertising, promotions and other marketing services when funds are not available or are simply too costly.
3. Barter also provides a one to one exchange of rooms and/or food and beverage for services without a transaction fee i.e. not subject to credit card or travel agent commissions.