Glossary
Average daily rate (ADR)
Average daily rate is what you earned per booked night, on average. Divide your nightly revenue by the number of nights booked.
Examples on this page use made-up homes and numbers to show the method. They are not client results.
How to work it out
ADR = nightly revenue ÷ booked nights
Use the revenue from nightly rates only. Leave out cleaning fees and taxes so months are comparable.
Example
Imagine a home that earned $3,600 in nightly rates from 18 booked nights in June.
$3,600 ÷ 18 = $200 ADR
Why it matters
ADR tells you what guests were willing to pay, not what you asked. If your listed rate is $240 but your ADR is $200, discounts and low-season nights are pulling the average down.
ADR and occupancy pull against each other
Raise prices and ADR goes up while occupancy usually goes down. The aim is the best combination of the two, which RevPAR measures.
Put it to work
- Guide: Is Airbnb Smart Pricing pricing you too low? Set a floor first
- Service: Co-Hosting, where we set and review your rates, minimum stays and gap nights for you, with nothing to pay upfront.
Related terms
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