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2025 DataHighly Recommended

Is Google Ads Worth It for Travel & Hospitality?

With a 6.5x average return on ad spend, Google Ads is a strong investment for travel & hospitality businesses.

6.5x
Avg. ROAS
$2.12
Avg. CPC
5.8%
Conversion Rate
$73.7
Cost Per Lead

Verdict: Highly Recommended

With a 6.5x average return on ad spend, Google Ads is a strong investment for travel & hospitality businesses. Here's what the data shows:

For every $1 spent
$6.5 return
Cost per new customer
$73.7
Typical waste rate
25%

Travel & Hospitality Google Ads ROI Breakdown

Here's what a typical $5,000/month travel & hospitality campaign looks like:

Monthly Budget
$5,000
Estimated Clicks
2,358
Estimated Leads
136
Projected Revenue
$32,500
Without Optimization: ~$1,250/mo Wasted
The typical travel & hospitality campaign wastes 25% of budget on irrelevant clicks, poor keywords, and bad targeting. Professional management can recover most of this waste.

Pros and Cons of Google Ads for Travel & Hospitality

Advantages

Strong average ROAS of 6.5x means most campaigns are profitable

Industry conversion rate of 5.8% is achievable with optimized landing pages

High search intent — people searching for travel & hospitality services are ready to buy

Relatively affordable leads at $74 compared to many industries

Established market with proven demand — you know customers are searching

Challenges

Even at $2.12 CPC, unoptimized campaigns can waste budget quickly

Typical 25% waste rate without proper campaign management

Intense competition drives up costs and requires expert management

Low-quality leads can dilute ROI if targeting isn't precise enough

Requires ongoing optimization — set-and-forget campaigns will underperform

When Google Ads Works for Travel & Hospitality

Google Ads is most effective for travel & hospitality businesses when:

  • Your customer lifetime value exceeds $221.1 — At $73.7 per lead, you need customers worth at least 3x that to sustain profitable growth.
  • You can commit to at least 3 months — The first month is data collection, the second is optimization, and by month three you should see the 6.5x ROAS benchmark.
  • Your landing pages convert — The 5.8% industry average assumes decent landing pages. Poor pages can cut conversions by 50% or more.
  • You track leads through to revenue — Knowing which keywords produce paying customers (not just leads) is what separates profitable campaigns from money pits.

Google Ads vs Alternatives for Travel & Hospitality

ChannelTime to ResultsCostBest ForTravel & Hospitality Fit
Google Ads1-3 months$73.7/leadImmediate high-intent leadsExcellent
SEO6-12 months$2,000-$5,000/moLong-term organic trafficGood (long-term)
Social Media Ads1-2 months$15-$50/leadBrand awareness, retargetingSupplementary
Email MarketingOngoing$500-$2,000/moNurturing, retentionComplementary
Content Marketing6-18 months$1,000-$5,000/moThought leadership, trustGood (long-term)

How to Test Google Ads for Travel & Hospitality with Minimal Budget

1

Start with $1,106-$1,474/month

At $2.12 per click, this gives you 521-695 clicks and approximately 15-20 leads to evaluate quality and conversion rates.

2

Focus on 5-10 high-intent keywords

Start with your most specific, high-converting keywords rather than broad terms. For travel & hospitality, prioritize keywords like “hotels near me” and “flight deals”.

3

Track everything from click to sale

Set up conversion tracking for form submissions, phone calls, and ideally track leads through to revenue. This data is essential for knowing which keywords actually produce paying customers.

4

Evaluate after 90 days

After 3 months, compare your actual cost per lead to the $73.7 benchmark. If you're close to or below 6.5x ROAS, scale up. If not, consider professional management to optimize performance.

Travel & Hospitality vs Overall Averages

CPC
$2.12
-60% vs avg
CTR
8.7%
+31% vs avg
CVR
5.8%
-24% vs avg
CPL
$73.7
+5% vs avg

More Travel & Hospitality Google Ads Resources

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Travel & Hospitality Google Ads Worth It? FAQ

  • Yes, for most travel & hospitality businesses. With an average ROAS of 6.5x, Google Ads typically generates $6.5 for every $1 spent. However, results depend heavily on campaign management — poorly optimized campaigns waste an average of 25% of their budget.
  • The average travel & hospitality Google Ads campaign achieves a 6.5x return on ad spend, with a cost per lead of $74 and a conversion rate of 5.8%. Well-optimized campaigns can exceed these benchmarks by 20-40%, while poorly managed campaigns often fail to break even.
  • We recommend starting with $1474-$3685 per month for travel & hospitality Google Ads. This provides enough data for 20-50 leads, which is the minimum needed for meaningful optimization. At $2.12 average CPC, this budget generates 695-1738 clicks per month.
  • Alternatives include SEO (longer timeline but lower ongoing cost), social media ads (better for awareness, lower intent), email marketing (great for retention), and content marketing. However, Google Ads provides the fastest path to leads for travel & hospitality because it captures high-intent searches from people actively looking for your services.
  • Most travel & hospitality campaigns reach profitability within 2-3 months with proper management. The first month focuses on data collection, the second on optimization, and by month three you should see consistent results. The 6.5x average ROAS typically kicks in once campaigns are properly optimized with the right keywords, bids, and landing pages.

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