How do you calculate Cost of Acquisition?

Userlevel 4

Hello Mews community, 

We are trying to assess the cost of acquisition for each new reservation / guest? And would like to understand if as hoteliers you have define a magic formula? Is there anything in particular that we should pay attention? 





3 replies

Userlevel 4
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Customer Acquisition Cost (CAC) is an important metric that indicates how much money a company spends to acquire a new customer. In our hotel, this is calculated per guest and per room by taking into account various acquisition costs such as marketing, advertising, commission to booking portals, etc.

Here is the formula to calculate the CAC per guest and per room:

\[ \text{CAC per guest} = \frac{\text{Total acquisition costs}}{\text{Number of new guests}} \]

\[ \text{CAC per room} = \frac{\text{Total acquisition costs}}{\text{Number of booked rooms}} \]

Steps to Calculate Total Acquisition Costs:

1. **Identify all acquisition costs**: This can include:
   - Advertising costs (online and offline)
   - Marketing costs
   - Costs for using booking portals (such as commissions to, Expedia, etc.)
   - Salaries of marketing and sales staff
   - Costs of promotions and offers

2. **Gather data for a specific period**: This can be monthly, quarterly, or annually.

3. **Calculate the total acquisition costs**: Sum all the above costs.


- Total acquisition costs in one month: €10,000
- Number of new guests in the same month: 200
- Number of booked rooms in the same month: 150


\[ \text{CAC per guest} = \frac{€10,000}{200} = €50 \]

\[ \text{CAC per room} = \frac{€10,000}{150} = €66.67 \]

- For the above data, the CAC per new guest would be €50.
- The CAC per booked room would be €66.67.

By accurately tracking this data, a hotel can gain insight into the effectiveness of its marketing strategies and make adjustments as needed to reduce acquisition costs.

It mainly depends on how far you want to go into this. you can also include your annual cost of gas and electricity the cost of cleaning the rooms, the rent of your hotel and so on. 
I hope that is what you meant but your question is rather vague and can go from small to very extensive in the costs that you want to include.

Best ragards,


Userlevel 4

Amazing, thank you @barb00sa
Do you have an efficient way to track your acquisition cost? where does this usually happen? Excel document or is there tool out there to manage this? 


Userlevel 4
Badge +1


This is an exel tool that was made for our company, we have been working with it for over 10 years now and to our great satisfaction. However when I was looking up the source code of this tool I noticed that my predecessor had to sign a confidentiality agreement that we are not allowed to share this source code. I have to find out if this company still exists and if there is an end date.

Gr Robin