If you want to analyze the data referring to your average daily rate, see below how to correctly interpret:
Low average daily rate (ADR) | High average daily rate (ADR) |
|---|---|
| Even though you have a high number of reservations, your profitability is low, so it is important to note that your prices need to be competitive. However, lowering the excess price can cause losses in the medium term, since a high volume of assistance increases the variable costs of your business. A good tip to raise the average daily rate without compromising daily rates prices is to offer more complementary services during the stay, such as extra cleaning, amenities, ticket sales, among others. | This indicates that your strategy is on the right path, so the focus is on the maintenance of your services quality. In addition, it is convenient to make some investments to stimulate new reservations for your brand and, based on the average daily rate indicator and other criteria, determine your target audience for marketing actions, for example. |
When analyzing the average daily rate, it is valid that the concept of high and low average daily rate is based on the reality of your business, both on daily rates amount and, mainly, operational costs. That is, if you find an amount of U$ 500,00 as average daily rate, to consider that this is low or high, you must analyze the operational costs and daily rates prices that you normally practice in your listings!