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HOSPITALITY GLOSSARY DEFINITION

Cost Per Click (CPC)

Reviewed: 2026-10-10 ยท Authority: Scale My Hotel Advisory ยท Verified Standards
PLAIN-ENGLISH DEFINITION

Cost Per Click (CPC) is the actual amount an advertiser pays each time a user clicks on their paid advertisement in Google Ads, Meta Ads, or metasearch platforms.

CALCULATION FORMULA & UNIT MEASURE CPC = Total Ad Spend / Total Number of Clicks

Why It Matters for Independent Operators

Hospitality keyword bids fluctuate heavily by destination and season. Managing CPC through strong quality scores and negative keywords helps reduce ad budget waste on irrelevant search intent.

Practical Scenario & Calculation

Illustrative Scenario

[Illustrative Scenario] A campaign receives 400 clicks from travellers searching for "villas in Alibaug with private pool" at a total ad cost of โ‚น8,000. CPC = โ‚น8,000 / 400 = โ‚น20.

How Operators Can Apply This Concept

Add negative keywords (e.g. "free", "jobs", "cheap guest house") to filter out low-intent searchers and reduce wasted ad spend.

Common Misunderstanding to Avoid

The lowest CPC does not equal the best campaign. A โ‚น15 click with 0% conversion is far more expensive than a โ‚น45 click that generates a โ‚น25,000 weekend booking.

Methodology & Source Standards: Google Ads & Meta Advertising Benchmarks.

Have questions about applying Cost Per Click (CPC) to your property?

Discuss your property's commercial performance with our team. We evaluate real distribution economics, rate parity, and direct booking opportunities.

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