December 25, 2024•2 min read
Guest Acquisition Cost (GAC): Are You Overpaying for Airbnb Guests?
RentalIntel Team
Real Estate Investment Experts
If you’re running a short-term rental (STR), getting bookings isn’t free.
Guest Acquisition Cost (GAC) tells you how much you’re paying to attract guests.
The Formula
\text{GAC} = \frac{\text{Total Marketing & Booking Costs}}{\text{Number of Bookings}}Where:
- Marketing & Booking Costs = Paid ads, platform fees, software
- Number of Bookings = Total confirmed reservations
Real-Life Example
Your STR Marketing Spend
| Cost Category | Amount |
|---|---|
| Airbnb Fees | $1,200 |
| Facebook Ads | $500 |
| Email Marketing | $300 |
| Total Marketing Costs | $2,000 |
| Total Bookings | 50 |
GAC Calculation
What Does a $40 GAC Mean?
- You spend $40 per guest to get a booking.
- If GAC is too high, your profits shrink.
- Lowering GAC increases your profit margins.
When GAC Matters (and When It Doesn’t)
✅ Essential for short-term rental operators
✅ Helps optimize marketing & advertising budgets
❌ Not relevant for long-term rentals
❌ Doesn’t factor in repeat guests or referrals
Pro Tips
- Lower GAC by optimizing SEO on Airbnb & Google.
- Use referral programs to encourage repeat guests.
- Test ad platforms (Facebook, Google, Instagram) for the lowest GAC.
The Bottom Line
If your Guest Acquisition Cost is too high, you’re leaving money on the table.
Optimize your marketing, reduce unnecessary spending, and increase profitability.
What’s your biggest marketing expense? Share below!
