Intro to Hospitality and Tourism
Average daily rate (ADR) is a key performance metric in the hospitality industry that calculates the average revenue earned per occupied room over a specific period. This figure is crucial for assessing the financial health of a hotel, as it directly relates to revenue management strategies and pricing decisions, helping to optimize room rates and maximize income. Understanding ADR also involves analyzing its relationship with occupancy rates and overall market demand, allowing hospitality professionals to make informed decisions about pricing and promotions.
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