A hotel performance metric showing the average income per paid room occupied in a given time period.
ADR measures the average revenue earned per occupied room over a given period. It’s a foundational metric for hospitality performance, but it should be read alongside occupancy and RevPAR to understand the full picture.
A common trap is chasing occupancy at the expense of rate. Strong marketing aims to increase demand and conversion so you can maintain (or raise) ADR while improving overall revenue efficiency.
Browse related definitions in the same glossary category.
Audience Segmentation
Dividing potential guests into groups based on behaviour, demographics, or interests to tailor marketing messages.
Booking Engine
An online reservation system that allows hotels to take direct bookings through their website, usually integrated with PMS or channel managers.
Booking Funnel
The journey from awareness to reservation. Includes discovery, consideration, booking, and post-stay loyalty stages.
Booking Window
The number of days between when a guest books and their arrival date - valuable for campaign timing and segmentation.
Build vs Buy
The strategic decision between developing custom solutions or purchasing existing products and services.
Channel Manager
Software that synchronises a hotel's room availability and rates across booking platforms (OTAs) and its direct booking engine.
Understanding "Average Daily Rate (ADR)" is just the first step. Our team at TwoSquares specializes in technical SEO and digital strategy, helping brands turn complex concepts into measurable growth.