Hostel Guest Acquisition Cost Calculator
Calculate your Customer Acquisition Cost (CAC) and LTV:CAC ratio to measure the effectiveness of your marketing spend.
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Understanding Guest Acquisition Cost
Guest Acquisition Cost (CAC) is a crucial metric that measures the total cost to acquire a new paying guest. It provides insight into the efficiency of your sales and marketing strategies.
Formula: CAC = Total Marketing & Sales Spend ÷ Number of New Guests Acquired
Comparing CAC to the Guest Lifetime Value (LTV) gives you the LTV:CAC ratio, a powerful indicator of your business's long-term profitability and sustainability. A higher ratio is generally better.
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