Return On Ad Spend (ROAS)
Return On Ad Spend (ROAS) measures the gross booking revenue generated for every currency unit invested in paid digital advertising campaigns.
Why It Matters for Independent Operators
ROAS quantifies advertising efficiency. A campaign delivering 8x ROAS generates ₹80,000 in gross direct bookings for every ₹10,000 invested in advertising.
Practical Scenario & Calculation
[Illustrative Scenario] A resort invests ₹25,000 in targeted Google Search ads and tracks ₹2,25,000 in direct confirmed bookings. ROAS = ₹2,25,000 / ₹25,000 = 9.0x.
How Operators Can Apply This Concept
Set target ROAS thresholds based on your OTA commission rate. If OTA commission is 20%, an ad campaign must achieve greater than 5x ROAS to be more cost-effective than third-party distribution.
Common Misunderstanding to Avoid
ROAS measures top-line revenue, not net profit. An 8x ROAS on a low-margin package can be less profitable than a 5x ROAS on a high-margin extended stay villa.
Hotel Marketing Budget Planner
Allocate an entered budget across editable marketing channels and compare assumed acquisition cost with available room nights.
Meta & Google Paid Advertising
Professional advisory and hands-on commercial execution for your property.