Allam will have to persuade the Football Association's council to allow the name change but said the club made losses of £28million last season when it was promoted to the Premier League.
He told the Guardian: "I know it will make a difference; shorter names have a quicker impact, it is textbook marketing.
"Hull is relevant. City is not relevant. Tigers: are you telling me you would drop the symbol of power?
"I cannot keep throwing money into it. There must be a limit. Our target is for the club to be self-financed, relying on its own resources.
"Manchester United are selling shirts in the Far East, selling commercial activities all over the world. We need the club to be known globally, and shortening the name will make the club known globally."
FA rules however say any change to the 'playing name' - in this case Hull City - must be approved by the council and an application will have to be lodged before April 1 ahead of a proposed change for the following season.
The rule states: "A club competing in any one of the Premier League, Football League, Football Conference, Southern Football League, Isthmian League and the Northern Premier League shall not be permitted to change its playing name... save with the prior written permission of Council.
"Any application for a change of playing name must be received before 1st April in any calendar year in order for it to be considered by Council for adoption in the following playing season.
"Council will use its absolute discretion in deciding whether to approve a change in a club's playing name."
Fans' group 'City Til We Die' hopes the FA will block the change.
It said in a statement: "Our group has already had extensive contact with key figures at the FA, and we anticipate they will take a dim view both of this announcement and of Dr Allam's rubbishing of our club's proud history at the meeting we had with him last week."
ends
Source: PA
Source: PA