Guest acquisition cost (GAC) is one of the most important metrics in the hospitality industry. This metric identifies the costs associated with bringing a guest into a hotel, and is therefore intrinsically linked to a hotel’s bottom line. In theory, for a hotel to prosper, they simply need to ensure that their GAC never exceeds their net revenue; in practice though, this can be easier said than done.
The key to calculating GAC and turning it into a manageable metric is to understand the range of factors that contribute to the final figure. This step-by-step guide is designed to highlight how hoteliers can confidently and accurately calculate the true cost of guest acquisition, and thereby increase revenue while also eliminating wasteful spending.