Cost Per Acquisition — the total cost of securing one confirmed booking through a given channel — is one of the most important numbers a hotel operator can understand, and one of the least consistently tracked. Most hotels know what they pay OTAs in commission. Fewer have a clear picture of what it costs to generate a direct booking through SEO, paid search, or email.
|
Channel |
Cost Per Booking (Estimate) |
Commission |
Guest Data? |
|
OTA (Booking.com / Expedia) |
€18–€45 per booking |
15–25% |
Partial only |
|
Direct — Organic SEO |
€3–€8 per booking |
0% |
Full |
|
Direct — Google Hotel Ads |
€6–€14 per booking |
0% (CPC) |
Full |
|
Direct — Paid Search (Google Ads) |
€8–€20 per booking |
0% |
Full |
|
Direct — Email to past guests |
€1–€4 per booking |
0% |
Full |
|
Direct — Social media |
€4–€10 per booking |
0% |
Full |
|
GDS / Travel Agents |
€15–€30 per booking |
10–15% |
None |
|
Telephone (inbound) |
€2–€6 per booking |
0% |
Full |
Email to past guests costs €1–€4 per booking — The cheapest bookings you can generate are from guests who already know and trust you.
→ Example: A €180 booking through Booking.com at 18% commission costs €32.40 in direct commission. Add Genius discount and Preferred Partner uplift, and the effective acquisition cost can reach €45–€55.
|
Guest Segment |
Avg Stays Over 3 Years |
Estimated Lifetime Value (€) |
|
OTA first-time guest |
1.2 |
€168–€252 |
|
Direct first-time guest |
1.8 |
€252–€378 |
|
Direct repeat guest (email retained) |
3.4 |
€476–€714 |
|
Direct loyalty / VIP guest |
5.2+ |
€728–€1,092+ |
Direct guests are worth 2–4x more over their lifetime than OTA guests — Lower acquisition cost, higher net ADR, and significantly higher repeat booking rates make direct guests the highest-value segment.
Reducing acquisition cost is not about cutting marketing spend — it is about shifting investment toward channels that deliver bookings at lower cost and higher long-term value. Here is how each discipline contributes.
A strong brand is the foundation that makes every other marketing investment more efficient. Guests who have a clear sense of who you are are more likely to book direct, return, and recommend you.
Your website is where every marketing channel eventually lands. A fast, mobile-optimised hotel website with a clear booking engine and prominent best-rate messaging is the commercial engine that converts traffic into revenue.
Search engine optimisation is the long-term channel that reduces your dependence on paid acquisition over time. Once established, organic search traffic arrives at near-zero marginal cost and compounds month over month.
Paid media — Google Ads, Google Hotel Ads, and Meta — provides immediate, controllable reach at the moment of highest intent. Google Hotel Ads is the most cost-efficient paid channel for direct booking displacement of OTA volume.
Email is the highest-ROI marketing channel available to independent hotels. A guest who has already stayed with or visited you costs €1–€4 per booking to re-engage via email.
You cannot manage what you cannot measure. Analytics and integrations give you the data to understand which channels are generating room nights and what they are costing per booking.
A hospitality-specialist marketing agency brings the expertise, tools, and bandwidth to run a full-stack digital marketing strategy without the overhead of building an in-house team.
The Lobby analyses your booking mix and builds a cost-optimised direct booking strategy tailored to your property.