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Terms Beginning with A
       
       
 

ADR Average Daily Rate

Hotel & Leisure


ADR (Average Daily Rate) is a key performance indicator in the hotel and leisure industry that is used to measure the average rate of rooms sold per day. It is calculated by dividing the total revenue generated by the number of rooms sold, and is expressed as a daily average.

ADR is important to hoteliers because it allows them to understand the pricing trends and to adjust their rates accordingly to optimize revenue. Raising rates too high can negatively affect occupancy rates while lowering rates too much can reduce profits, therefore, finding the right pricing balance is critical.

ADR is also used as a comparative metric between hotels, allowing investors, industry analysts, and hotel owners to benchmark their performance against competitors.

For example, if a hotel has an ADR of $150, it means that the average price a guest pays for a room is $150. This is calculated by dividing the total revenue by the number of rooms sold.

Overall, ADR is an important metric in the hotel and leisure industry and can provide valuable insights into a hotel's pricing strategy and overall performance.


   
     

ADR Average Daily Rate

Hotel & Leisure


ADR (Average Daily Rate) is a key performance indicator in the hotel and leisure industry that is used to measure the average rate of rooms sold per day. It is calculated by dividing the total revenue generated by the number of rooms sold, and is expressed as a daily average.

ADR is important to hoteliers because it allows them to understand the pricing trends and to adjust their rates accordingly to optimize revenue. Raising rates too high can negatively affect occupancy rates while lowering rates too much can reduce profits, therefore, finding the right pricing balance is critical.

ADR is also used as a comparative metric between hotels, allowing investors, industry analysts, and hotel owners to benchmark their performance against competitors.

For example, if a hotel has an ADR of $150, it means that the average price a guest pays for a room is $150. This is calculated by dividing the total revenue by the number of rooms sold.

Overall, ADR is an important metric in the hotel and leisure industry and can provide valuable insights into a hotel's pricing strategy and overall performance.


Related Hotel & Leisure Terms


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