ADR (Average Daily Rate)

Quick Takeaways

  • AI may help people discover a business, but it rarely earns trust by itself.
  • Customers still check Google, reviews, photos, websites, and business listings before deciding.
  • Your website and trust signals need to support what people find in AI search.
  • The goal is still simple: be seen, be trusted, and be chosen.

Definition
Average room revenue per occupied room. ADR = Rooms Revenue ÷ Rooms Sold.

Why It Matters
Reveals pricing power and the effectiveness of your rate strategy.

✅ Best Practices

  • Segment by channel & rate code.
  • Use events/seasonality to price tiers.
  • Align ADR goals with occupancy targets.
  • Monitor ARI vs. compset.

Common Mistakes

  • Flat pricing across seasons.
  • Ignoring fence/length-of-stay strategies.
  • Judging success by ADR alone.

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From Definitions to Decisions
Price with purpose—pair ADR strategy with demand, distribution, and brand positioning.