The Average Daily Rate (ADR) is an important metric mainly used when benchmarking your property with the competition. The ADR will give you the Average room rate of all of your rooms booked. It does not include any additional room revenue, nor Canceled or No Show reservations. To calculate the ADR, divide the total Room Rates Revenue of a day by the number of accommodations sold for that same day.
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 graphically observe these changes.
Accessing the Report and Filters
Go to Reports>Production Reports > Average Daily Rates
Once there you can click on Filters to begin narrowing down to what you need to see.
- Select the year and the comparison year
- Select exact dates
- Choose which room types you would like to analyze.
- You can select which 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.
1: In this example, today (03/05) is marked by the vertical line. The today line is very important to understand Pace.
2: Blue is this year and red is last year. All the dates before today are in the past and therefore unworkable. However going forward, there is an interesting Pink Shade that lets me see pace.
3: The bottom of the Shaded Area is what we call the pace line. This line shows you the forecast of the ADR for the month of September, as of March 5, 2019.
4: The top or Red line shows you where you ended up. The area in the middle is the reservation growth (or pace) you experienced between 03/05 until that specific date.
5: As long as this year's line is on or above the Pace line you should do better than last year.
6: However if this year is below the Pace line, it may suggest that you may be falling behind and there is work to be done.
7. You can also toggle between Day, Week, or Month in order to see the exact detail you are looking for.