Your average daily rate is the average rental income per paid occupied room over 30 days. It is one of the three main success metrics used to see how well your B&B, small hotel, vacation rental, or Airbnb is performing.
Your hotel’s average daily rate is …
*Please note this is an estimation only.
Your average daily rate is the average rental income per paid occupied room in a given time period. Along with your RevPar (revenue per available room) and Occupancy Rate, your ADR (average daily rate) is one of the three main success metrics used to see how well your small property is doing.
To increase your ADR, you must focus on increasing your revenue per customer by implementing pricing strategies, including up-sale and cross-sale offers. Complementary offers that will enhance their experience include shuttle transfers, room upgrades, equipment hire, and tours and activities.
Average Daily Rates (ADR) vary between regions and property types and fluctuates based on seasonality. On average, the ADR in different parts of the world look approximately like this:
Create more demand in peak season – scarcity is one of the main drivers justifying higher daily rates. Increase your bookings by finding more customers better matching the unique experience you offer. You can do this by adding more online travel agents (OTA’s) through channel manager software. It’s simple to implement and cost effective way to better manage your online advertising.
When Different Room Types Exist, Value Each One of Them individually – Rooms with an extra special view or spectacular amenities can attract higher daily rates than your other rooms. Set your daily rates accordingly to reflect the value your guests put on these things.
Sell your hotel products – You can influence how much your guests spend to improve daily rates by adding items for purchase. One hotelier was able to significantly increase earnings by simply offering microwave popcorn for sale next to their movie rentals! Another offered their plush monogrammed towels for purchase. Add a payment portal to seamlessly manage payments alongside your room booking payments.
To generate more revenue from your rooms you may also need to increase your occupancy rate. Learn more by running the numbers through our free Occupancy Rate Calculator.
The simplest way to action all of the above is with an all-in-one system that allows you to seamlessly control your front desk, manage your room availability and advertising across most booking websites globally, handle payments, direct bookings and remote management via a mobile app. Little Hotelier does all this… and more! You can learn more about Little Hotelier by watching the video below, or contacting our friendly team for a free consultation.
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