Production and Operations Management
ADR, or Average Daily Rate, is a key performance metric used in the hospitality and tourism industry to measure the average revenue earned per occupied room on a daily basis. It is calculated by dividing the total room revenue by the number of rooms sold, providing insights into pricing strategies and revenue management. Understanding ADR is crucial for hotels and other lodging businesses as it directly impacts profitability and helps in assessing the effectiveness of yield management practices.
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