Overview
The Average Daily Rate (ADR) is an important metric mainly used to compare your property with the competition. It gives you the average room rate for all of your booked rooms.
- To calculate the ADR, divide the total room rate revenue per day by the number of accommodations sold for that same day.
- Remember: The ADR does not include any additional room revenue nor Canceled or No Show reservations.
How it works
- For example, A property sells multiple rooms at different prices. Room revenue/Accommodations sold = ADR
- If I sell 1 King room for $100, my ADR is $100. ($100/1 accommodation) = $100 per accommodation.
- If I sell 1 King room for $100 and 1 Queen room for $50, my ADR is $75. ($150/2 accommodations) = $75 per accommodation.
- If I sell 1 King room for $100, 1 Queen room for $50, and 1 dorm bed for $30, my ADR is $60. ($180/3 accommodations) = $60 per accommodation. Below, you will see how to observe these changes graphically.
Access and navigate the ADR Report
- Go to the Main menu and click on Reporting
- Click on Classic Reports
- Click on Average Daily Rate
Apply filters
Once there you can click on Filters to begin narrowing down to what you need to see.
- Select the exact dates, year, and the comparison year
- Choose which room types you would like to analyze.
- You can select which reservation source you would like to check. In most cases, it's best to leave them all selected.
- Click on the Apply button to Save the Filters selected.
Understanding the graphic
- In the example below, today is marked by the vertical line. Today's line is very important for understanding pace.
- In the comparison, blue is this year, and red is last year. All the dates before today are in the past and, therefore, unworkable.
- The bottom of the Shaded Area is what we call the Paceline. This line shows you the forecast of the ADR for the month of November as of October 15th. As long as this year's line is on or above the Paceline, you should do better than last year. However, if this year is below the Paceline, it may suggest that you may be falling behind and there is work to be done.
- The top or Red line shows where you ended up. The area in the middle shows the reservation growth (or pace) you experienced between today and that specific date.
- Comparison year legend (in the example below, 2024 vs 2023)
- Toggle between day, week, or month to see the exact detail you are looking for.
- Today's line advances to the next month in month mode/view. By selecting the day or week view, the line will appear on the corresponding day or week.
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