ROAS (Return on Ad Spend) and the VistWay revolution
The ROAS (Return on Ad Spend) is the most widely recognized advertising performance evaluation system worldwide. It is the tool used by leading platforms such as Google Ads and Facebook Ads to accurately measure the cost-effectiveness of an advertising investment. For each investment made, ROAS captures the financial result, giving a clear picture of performance and profitability.
The VistWay is the first Greek direct booking platform (Direct Booking) which adopted the formulation of its pricing policy based on this internationally recognized system.
What is ROAS and why is it important?
ROAS measures the return on investment by calculating the revenue generated by each dollar of advertising. For example, if you invest $1 and generate $4 in revenue, then your ROAS is 4:1.
Advertising companies aim for ROAS 4:1 or higher as a reference point. This means that every €1 investment must yield at least €4.
How is ROAS calculated on VistWay?
Using the example of an accommodation with:
- Average nightly rate: 100€
- Annual reservations (overnight stay) via OTAs: 200
- Annual turnover: 200 x €100 = €20,000
- OTAs Supply (17%): €20,000 x 17% = €3,400
ROAS in OTAs
For OTAs, advertising costs translate into commissions:
- Cost: 3.400€.
- Income: 20.000€.
- ROAS via OTAs: €20,000 ÷ €3,400 = 5,88:1.
ROAS on VistWay
The annual screening through VistWay starts from just 105€ for 300 days, including 65 days of free viewing for the first members forms the cost per day is €0.29, making it essentially the most advantageous advertising proposition
For the same accommodation:
- Display cost: 105€.
- Required turnover for ROAS 4:1: €105 x 4 = €420.
- Reservations required: 420€ ÷ 100€ (average price per night) = 4.2 daily bookings per year.
How Many Reservations Are Required for ROAS 5.88:1?
To compare VistWay's ROAS to OTAs' ROAS (5.88:1), revenue needs to be generated 5.88 times the cost of display:
- Display cost: 105€.
- Required turnover: €105 x 5.88 = €617.4.
- Reservations required: €617.4 ÷ €100 = 6.17 daily bookings per year.
How Many Reservations Are Required to Cover the Annual Advertising Cost?
To cover the cost of displaying on VistWay:
- Display cost: 105€***
- Average cost per booking through OTAs (17%): 17€
- Reservations required: €105 ÷ €17 = 6,17 daily reservations per year.
How does ROAS increase with more Bookings?
In our example, if the 10% of the reservations is 20, that is daily reservations per year of the 200 come through VistWay:
- Revenue from VistWay: 20 x €100 = €2,000
- Display cost: 105€
- ROAS: €2,000 ÷ €105 = 19,05:1
- Economic benefit compared to OTAs:
- OTAs cost for 20 bookings: 20 x 17€ = 340€.
- Savings through VistWay: 340€ – 105€ = 235€.
If the percentage increases to 15% (30 reservations daily reservations per year):
- Revenue from VistWay: 30 x €100 = €3,000
- Display cost: 105€
- ROAS: €3,000 ÷ €105 = 28,6:1
- Economic benefit compared to OTAs:
- OTAs cost for 30 bookings: 30 x 17€ = 510€.
- Savings through VistWay: 510€ – 105€ = 405€.
The more bookings come from VistWay, the higher the ROAS, while the cost of display remains constant. In contrast, in OTAs, commissions increase with each new booking, reducing net profitability.
The Advantages of VistWay
With the VistWay, each entry includes:
- Full-page view with description, photos, videos, map and interesting points.
- Price list with seasonal prices.
- Amenities and policies determined by the host.
- Updated availability calendar (in real time).
- Create a host profile.
- Website connection of the accommodation and social media (and connection with the booking engine the accommodation website).
- Communication tools, such as telephone (landline and mobile), WhatsApp, email, contact form, even via social media.
- Active presentation link, which you can share anywhere and in any way.
What Does It Mean to You?
The active link leads to a comprehensive presentation of your accommodation which includes:
- Detailed description of the accommodation.
- High quality photos and videos.
- Location on the map and nearby points of interest.
- Price list and availability in real time.
- Amenities and policy information.
- Full contact details (telephone, WhatsApp, email, contact form and through social media).
Benefits
The active link can be shared via:
- Social media.
- SMS, WhatsApp, email.
- Your personal website or other channels.
It gives the potential visitor all the information he needs to proceed immediately and directly to the reservation with you, without intermediaries or additional commissions.
With VistWay, your listing becomes a professional visibility tool that increases your booking performance.
Conclusions
With the VistWay, hosts gain:
- Lower advertising costs.
- Increased ROAS compared to OTAs.
- More bookings with reduced commissions.
His choice VistWay offers an efficient and flexible display system, significantly enhancing the profitability of each accommodation.
Special Offer for First-Time Hosts
Register your accommodation on VistWay by the end of February and benefit from:
- 120 days of free viewing.
- 50% discount on the annual viewing package, ensuring a low price for future renewals.
Get started today and take advantage of this unique offer. VistWay provides you with professional visibility, high performance and the confidence of an internationally recognized strategy.New Hosts
List your accommodation by the end of February and benefit from:
- 120 days of free viewing.
- 50% discount on the annual viewing package for any future renewal.
Start today with VistWay, the only platform Direct Booking which offers you complete professional visibility at low cost and high performance!
*** The advertising cost of 105€ refers to the price that applies exclusively to the first members – hosts participating in the VistWay platform.
This special price includes:
- Discount 50%, which is permanently guaranteed for the first members.
- Annual advertising package with a 300-day projection, which additionally includes 65 days of free viewing.
With this offer, early adopters benefit from the lowest possible price, while ensuring the continued visibility of their property on the platform, boosting their visibility and bookings.
This opportunity is a cost-effective way of professional exposure with high ROAS (Return on Ad Spend), offering a clear competitive advantage.