What is a good ROAS for hotel campaigns?
Understanding profitability thresholds
| ROAS | What it means |
|---|---|
| 3x | Baseline — minimum acceptable, covering costs |
| 5x | Good — more profitable than typical OTA commission (~20%) |
| 6x+ | Strong — healthy direct channel performance |
How to read it
A ROAS of 5x means: for every €1 spent on Google Ads, you generate €5 in direct booking revenue.
Since OTAs typically charge 15–20% commission, you need at least a 5x ROAS to outperform them on a cost basis.
What affects ROAS?
- Seasonality — peak periods naturally drive higher ROAS
- Hotel positioning — higher ADR properties often see better ROAS
- Market competition — more competitive markets raise ad costs
- Campaign maturity — campaigns improve as Google’s algorithm learns
Where to find your ROAS
In your Userguest dashboard, go to AdsPlus in the left menu. Your CSM also includes ROAS in your regular performance reports.
💡 Don’t judge campaigns by ROAS alone in the first 30–60 days — Google needs time to optimise. Your CSM will flag any concerns early.