Hospitality
Sector

Transfer Pricing in the Hospitality Sector.

The Hospitality sector entails a large number of services taking place between entities that form part of national and multinational groups, such as booking services, transportation, accommodation, leisure activities, recreational, entertainment and cultural offers. Additionally, the related HORECA and MICE services may form an integral part of the services offered at different levels and scales. As such, transfer pricing has become more and more relevant for this sector, gaining a seat at decision-making processes for operative considerations and strategic business planning.

Our sector experts may provide assistance in the following matters:

The definition and defense of management fees, especially those derived from hotel management agreements.
Royalty charges and franchise agreements related to brand names and trademarks.
Property leasing and rentals, as well as owner operation models.
Centralized booking services, administrative support and financing.
Marketing and advertising fees for shared promotional campaigns.
Charges deriving from shared IT, CRM and ERP systems and other tech infrastructures.
The allocation of shared employee costs, insurance premiums, or other charges across the different entities of the Group.
The remuneration of central procurement for goods and services.
The definition and defense of maintenance and repair service fees.

May we help you?

Should you wish to receive more information on this topic, please contact our hospitality sector transfer pricing experts