Guest Acquisition Cost: Everything Hoteliers Should Know

Written by Flame

If you’re a hotelier, you’ll agree that a lot of thought goes into pricing because getting it right is the key to winning your customers’ trust and loyalty. And even though the availability of a service and the seasons can result in reasonable price fluctuations, you’ve got to make the necessary changes, bearing in mind guest cost acquisition.  As a student who is studying hospitality, aside from browsing the internet for academic help from services like, you should also ensure you learn more about guest acquisition cost because it will be a great determinant of your success when you finally become a restaurant owner.

How much it costs to get guests to walk through your door is the most critical metric for restaurant owners because it determines if your business will stay afloat or not. This article will break down what guest acquisition cost is and why you should pay attention to it.

What Is Guest Acquisition Cost?

For those who have been hoteliers for a while now, guest acquisition cost is relatively self-explanatory. But for someone who is just making their debut in the hospitality industry, you might want to read more on the subject. In simpler terms, this is the cost a restaurant owner pays to win over a new customer. On the surface, it seems like a simple concept, but it’s more detailed when you come to think of it.

The Guest Acquisition Process

As you know, businesses don’t automatically win over customers simply because they offer exceptional services. And as a hotel owner, a lot goes into persuading prospective clients to book a room with you or have a meal at your restaurant.

As the business owner, you first need to make prospective customers aware of your business and then give them reasons to consider doing business with you. And finally, they’ve got to be convinced that engaging your brand would add value to their lives. This means that every guest who decides to book a room with you is willingly choosing you over rival businesses because you’ve proven yourself. This entire process prospects go through from discovering your brand to becoming clients is the guest acquisition process.

Signals That Make Guests Choose Your Property

As a hotel owner, you probably invest a lot of time, money and resources in making your brand desirable to potential customers. Your sales and marketing strategies are successful when the number of new guests you win over corresponds with your brand promotion investment.

And pricing is the most important element in your marketing strategy because as you know, guests are always looking for hotels that offer them value for money. That’s why you’ve got to ensure your prices correspond with the services you offer. What’s more, they should be competitive so guests have a reason to choose you over rival businesses.

Wrapping Up

Now that you have a better understanding of guest acquisition cost, you have the knowledge you need to keep your hotel in business. Ensure that when you’re pricing your services, you consider what potential guests will think.



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