Steps to Calculate ROAS for a Luxury Resort with Google Ads

by | Sep 25, 2025 | Digital Academy | 0 comments

resort marketing

For luxury resorts, calculating ROAS (Return on Ad Spend) in Google Ads is a bit different compared to e-commerce because the purchase path is longer (search → enquiry → booking → stay → upsell). You need to tweak how you measure both ad spend and revenue attribution.

 Steps to Calculate ROAS for a Luxury Resort with Google Ads

1. Define Ad Spend

This is straightforward:

Ad Spend=Total money spent on Google Ads in a given period\text{Ad Spend} = \text{Total money spent on Google Ads in a given period}

2. Attribute Revenue to Ads

This is the tricky part. Resorts usually get leads first, not instant online payments. You’ll need to track:

  • Direct online bookings (via booking engine or website with conversion tracking).

  • Offline bookings from leads (calls, WhatsApp, enquiry forms).

    • Use Google Ads conversion import from CRM or offline conversion tracking.

3. Use Booking Value, not just Leads

Instead of only tracking leads, assign monetary value to each booking:

Revenue from Ads=Number of Bookings×Average Booking Value\text{Revenue from Ads} = \text{Number of Bookings} \times \text{Average Booking Value}

  • If a 3-night stay costs ₹45,000 on average, each booking = ₹45,000 revenue.

  • For partial attribution (e.g., not all leads convert), you can apply lead-to-booking conversion rate.

4. ROAS Formula for Luxury Resort

ROAS=Total Booking Revenue from Google AdsGoogle Ads Spend\text{ROAS} = \frac{\text{Total Booking Revenue from Google Ads}}{\text{Google Ads Spend}}

5. Example Calculation

  • Google Ads Spend (30 days): ₹2,00,000

  • Leads Generated: 200

  • Lead → Booking Conversion Rate: 15% (30 bookings)

  • Avg. Booking Value: ₹50,000

Revenue=30×50,000=₹15,00,000\text{Revenue} = 30 \times 50,000 = ₹15,00,000ROAS=15,00,0002,00,000=7.5\text{ROAS} = \frac{15,00,000}{2,00,000} = 7.5

👉 Meaning: For every ₹1 spent, resort earns ₹7.5.

6. Extra Factors for Resorts

  • Upsells: Spa, candlelight dinners, excursions → include them for more accurate ROAS.

  • Lifetime Value (LTV): Some guests return or refer others → ROAS can be understated if you ignore this.

  • Attribution Windows: Guests may book weeks after the first ad click → use data-driven attribution in Google Ads.