Understanding ADR vs. ADR (Total)

ADR (Average Daily Rate) and ADR (Total) both measure your revenue per occupied night, but they tell different stories about your earnings.

📊 ADR

What It Measures

ADR calculates your average accommodation (unit revenue) only per occupied room night.

ADR = Unit Revenue (Nightly) / Guest Nights

What's Included

  • Unit revenue
  • Rent accommodations only

What's NOT Included

  • ❌ Fees (Cleaning fees, Service fees, Pet fees, Resort fees, etc.)
  • ❌ Taxes
  • ❌ Extra guest charges
  • ❌ Other add-ons

Example

Booking: 3 nights at $150/night = $450 in unit revenue
Cleaning fee: $75
Service fee: $25
Taxes: $50
Total paid by guest: $600

ADR = $450 Unit Revenue ÷ 3 nights = $150 per night

💰 ADR (Total)

What It Measures

ADR (Total) calculates your complete revenue per occupied room night—everything the guest pays.

ADR (Total) = Total Revenue (Nightly) / Guest Nights

What's Included

  • ✅ Unit revenue 
  • ✅ Fees (Cleaning fees, Service fees, Pet fees, Resort fees, etc.)
  • ✅ Extra guest charges
  • ✅ All other fees and charges

Example

Booking: 3 nights at $150/night = $450 in unit revenue
Cleaning fee: $75
Service fee: $25
Pet fee: $50
Total paid by guest: $600

ADR (Total) = $600 total revenue ÷ 3 nights = $200 per night

🎯 Why Both Metrics Matter

Use ADR when:

  • Comparing base pricing across properties or markets
  • Evaluating your nightly rate strategy independent of fees
  • Benchmarking against industry standards that use accommodation-only ADR
  • Analyzing pricing trends over time
  • Setting competitive base rates

Use ADR (Total) when:

  • Understanding your true revenue per occupied night
  • Calculating actual profitability and margins
  • Making financial decisions about property investments
  • Comparing complete revenue performance across your portfolio
  • Presenting total earnings to stakeholders or investors
  • Evaluating the impact of your entire fee structure

💡 Real-World Scenarios

Scenario 1: Revenue Analysis

Question: "How much am I really earning per occupied night?"

Answer: Use ADR (Total) = $225

This shows you're earning $225 per night after accounting for all fees and charges—not just the $175 base rate.


Scenario 2: Competitive Pricing

Question: "Are my nightly rates competitive with similar properties in my market with Direct data?"

Answer: Use ADR (Standard) = $175

This lets you compare your base accommodation rate apples-to-apples with competitors, without the noise of different fee structures.


Scenario 3: Fee Impact Assessment

Question: "How much additional revenue do my fees generate per booking?"

Answer: Compare both metrics side-by-side. The Pacing Detail report (chart/graph) or Leaderboard report (table) in your dashboard make this easy!

ADR (Total) - ADR = $225 - $175 = Difference of $50 per night

Your fees add an extra $50 in revenue per occupied night beyond your base accommodations.


Scenario 4: Profit Margin Calculation

Question: "What are my average profit margins per paid guest night?"

Answer: Use ADR (Total) = $225

Subtract your operating costs from $225 (total revenue per night) to get your true profit margin.


🧮 Quick Reference Guide

When You See the Difference

Metric Shows You Best For
ADR Base accommodation pricing power Pricing strategy, market comparison
ADR (Total) Complete revenue per occupied night Financial analysis, profitability

The gap

How much your fees contribute Fee optimization, revenue strategy

✅ Key Takeaways

  1. ADR measures your accommodation revenue only
  2. ADR (Total) measures everything your guests pay, inclusive of fees
  3. Both metrics are valuable for different business decisions
  4. The difference between them shows how much your fees contribute to revenue
  5. Use ADR for pricing strategy and Direct-data market comparison
  6. Use ADR (Total) for financial planning and profitability analysis
  7. Track both over time to understand your complete revenue performance

Think of it this way:

  • ADR = What you charge for accommodations only
  • ADR (Total) = What you actually earn per night overall

Both tell important stories about your business. ADR helps you compete on pricing. ADR (Total) helps you understand your true financial performance.