- Definition: Customer acquisition cost is the aggregated sum of all expenses to put heads in beds. This includes travel promotions, commissions, e-commerce, loyalty programs, etc. Every dollar saved in customer acquisition falls straight to the bottom line.
- Example: Hoteliers strive to get bookings at the lowest CAC. Leveraging OTA channels usually produces higher CAC than direct bookings.
References: https://hotelinvestortoolbox.com/hit-glossary/