Acquisition cost

What is acquisition cost?

In the context of hospitality revenue management, the acquisition cost term may apply to either a customer or an organization.

To a customer, acquisition cost may include intrinsic costs, such as price, and extrinsic costs such as the time it takes to make the purchase and the cost of gasoline it requires to get to and from the store.

To an organization, acquisition cost means the cost of acquiring the customer, including the costs of marketing, the costs of taking reservations, and the costs of actually serving the guest.