Cost per click is the model where you pay each time someone clicks your ad, not per booking. It is how Google Ads and much of metasearch work. The risk is paying for many clicks that do not convert, so it only pays off if you control your website's conversion well.
Example A hotel pays 1.20 euros per click on metasearch and needs to convert 1 in 30 for it to pay off.
CPC stands for cost per click, a payment model where you pay each time a user clicks on your ad, regardless of whether they book. For example, in Google Ads you pay for every click on your hotel offer, not for the room sold.
How is CPC calculated?
CPC is calculated by dividing the total campaign cost by the number of clicks received. If you spend 100 euros and get 200 clicks, your average CPC is 0.50 euros per click.
What is CPC used for in travel and how is it different from CPA?
CPC is used to measure how much it costs to drive visitors to your website or metasearch engine, but it does not guarantee bookings. It differs from CPA (cost per acquisition) because CPA only charges when a user completes a reservation, while CPC charges per click even if no conversion happens.
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