Acquisition
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Customer Acquisition Cost
Customer Acquisition Cost, abbreviated as CAC, is the cost of winning a customer to book a hotel room. With CAC, any company can gauge how much they’re spending on acquiring a (new) customer. Elementa like loyalty and life-time-value play an important role. If the CAC is profitable to the hotel at all, has to do with the RevPOR. If the CAC is efficient, has to do with the ROI (return on investment). CAC can be compared, for instance:
- when operating on your own, direct sales;
- when using other ways of distribution.
Acquisition costs
These are strongly linked to distribution and promotion. Again, in the past no money was spent on this. So, if you ick this up in any way, it will be a decision in the group marketing costs.
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