Customer Acquisition Cost and Why It Matters for Hotels
Albert BarraAugust 4, 2026 · 1 min read
Ideas, knowledge and community for a better future in Hospitality.
BYAlbert BarraHospitality · Strategy · Leadership · Marketing
For hoteliers, understanding customer acquisition cost is essential. This article explains what CAC is, how to calculate it, why it matters to profitability, and which guest decision signals—from reviews and pricing to advertising and OTA commissions—shape acquisition costs.
As a hotelier, much of your focus is on pricing. Getting the price right is fundamental to building consumer trust. Rates also vary depending on availability and seasonality. However, you must also consider the other side of the coin: the cost of customer acquisition.
If you are not thinking in terms of how much it costs to bring those customers through your door in the first place, you are missing a critical metric for mapping out your success. What is customer acquisition cost? How do you calculate it? Why does it matter? In this article, we will explore what you need to know.
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