CAC (Customer Acquisition Cost)

Definition

The full cost of winning one booking, computed per channel. On the OTA side it’s mostly commission; on the direct side it’s ads, metasearch clicks, booking-engine fees, and loyalty costs. €2,000 of monthly direct-channel spend producing 50 bookings is a €40 CAC.

What it tells you

CAC makes “direct is cheaper” a testable claim instead of a slogan. A €40 direct CAC beats an 18% commission only above a booking value of ~€222; below that, the OTA booking was the cheaper one to acquire. The common mistake is counting OTA commission while treating direct as free.

How to track it

Sum each channel’s true costs — commissions, ad spend, metasearch CPC, tech fees — and divide by that channel’s bookings, monthly. Keep the definition stable so the trend stays comparable.

Where it fits

The cost side of channel economics: net ADR tells you what a booking is worth once won, CAC what it cost to win. Channel-mix strategy is the balance of the two.