ADR is also known as Average Daily Rate. The total Room Revenue for a given period (day, month, month to date, year to date), divided by the number of rooms occupied for the same period.
ADR is a key performance indicator used to measure the average rate per room or unit for a specific period. ADR is an important metric for hotels, resorts, and other lodging establishments as it helps them to determine their revenue per available room (RevPAR), which is calculated by multiplying ADR by the occupancy rate.
Here are some examples of how ADR is used in the travel industry:
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Hotel ADR: This is the average rate per room for a specific period, such as a day, week, or month. ADR can vary depending on factors such as the type of room, location, seasonality, and demand.
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Vacation rental ADR: This is the average rate per unit for a specific period, such as a day, week, or month. ADR for vacation rentals can vary depending on factors such as the location, amenities, size, and seasonality.
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Cruise ADR: This is the average rate per passenger per day for a specific cruise itinerary. ADR for cruises can vary depending on factors such as the type of cabin, cruise line, itinerary, and seasonality.
ADR is a useful metric for hospitality businesses as it provides insights into pricing strategies and revenue management. A higher ADR can indicate that a business is charging a premium for its services, while a lower ADR may indicate that a business is offering discounts or promotions to attract customers.
The ADR is ratio that indicates to what extent rooms are being discounted or up-sold, and is frequently used as a measure of economic performance.