Why is ADR important to a hotel?
The Average Daily Rate, also known as ADR is a term popular amongst hoteliers and it acts as a strong indicator of a hotel’s performance and profits.
The ADR helps one determine the average rate of the rooms sold over a specific period of time.
This duration can refer to a quarter, a 30-day period or even a year..
What is the difference between ADR and RevPAR?
There are two important indicators: ADR or ARR (average daily rate or average room rate) and Revpar (revenue per available room). … ADR or ARR: it is the average price of each room sold per day. Revpar: it is the average price of each available room per day, per month or per year.
What is RevPAR in hotel?
Revenue per available room (RevPAR) is a metric used in the hospitality industry to measure hotel performance. … RevPAR is also calculated by dividing a hotel’s total room revenue by the total number of available rooms in the period being measured.
How do hotels raise ADR?
So, apart from applying the rate updates, you can follow the below strategies that’ll help you increase your hotel ADR:#1: Set optimum pricing. … #2: Offer packages and promotions. … #3: Keep vigil on competitors. … #4: Personalize services with guest self-service portal. … #5: Extended stay discount for guests.More items…
How is hotel ADR calculated?
The average daily rate is calculated by taking the average revenue earned from rooms and dividing it by the number of rooms sold. It excludes complimentary rooms and rooms occupied by staff.