Today's Revenue Management thought:-

Cost of acquisition ….CAC

Unfortunately, most hotels have very little insight or interest for their CAC.

By monitoring CAC as a KPI, hotels can better understand how it varies and make smarter decisions in an attempt to steer these costs downwards.

Experimenting with different marketing strategies, changing pricing strategies, and finding more cost-effective channels to acquire customers.

Monitoring CAC also helps identify areas where cost savings can be made and highlight areas to be more efficient in the use of resources.

By not maintaining an watchful eye on CAC you will see long-term profits deteriorate over time as CAC tend to increase faster than the total revenue..

Have a profitable week.

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