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Vacation Rental Glossary

Average Daily Rate (ADR)

Vacation rental metrics or key performance indicators are critical measurable aspects of your business that you can lean on to understand and manage your business better. From occupancy rates to referrals your vacation rental is getting, it can be helpful to track these metrics. “You can’t improve what you don’t measure!”

If you understand the business metrics, you and/or the vacation rentals’ manager will be able to analyze the return on your investment and return on revenue more accurately to improve your operations.

Average Daily Rate (ADR) is a measure used in the hospitality industry to find out how much money, on average, is earned per room or accommodation unit in one day. It’s calculated by dividing the total revenue generated from rooms by the number of rooms sold (occupied) during a specific period, typically a day.
Average Daily Rate (ADR) = Total Revenue from Occupied Rooms ÷ Number of Occupied Rooms

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