If you want to analyze the data referring to your average daily rate (ADR), check below how to do it properly:
Low average daily rate | High average daily rate |
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| Even though you have a high number of reservations, your profitability is low, so it is important to notice that your prices must be competitive. However, lowering the excess price can cause losses in the med-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 extra services during the stay, such as extra cleaning, amenities, ticket sales, and others. | It indicates that your strategy is working, 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, set your target audience for marketing actions, for example. |
When analyzing the average daily rate, it is important to keep in mind the concept of high and low average daily rate based on the reality of your business, both on daily rates amount and operational costs. That means that if you find an amount of U$ 500 as an average daily rate, considering this is low or high, you must analyze the operational costs and daily rates prices that you usually apply on your listings!