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.