Are Hotels Profitable? A Comprehensive Guide to Hotel Profitability

Guest Acquisition Cost (GAC)

GAC is a metric that measures the cost of acquiring new guests. Effective marketing and sales strategies can help reduce GAC, thereby improving hotel profitability. By focusing on targeted marketing campaigns, leveraging online travel agencies, and optimizing direct booking channels, hotels can minimize GAC.

Strategies to Improve Hotel Profitability

Now that we've explored the factors that can impact hotel profitability and key profitability metrics, let's discuss strategies to improve hotel profitability: