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If a guest books a $200 room using a 20% discount code, the revenue used for the calculation is $160.",[],{"type":1143,"text":1234,"spans":1235,"direction":932},"What is the difference between ADR and RevPAR?",[],{"type":922,"text":1237,"spans":1238,"direction":932},"While ADR shows how much you sell a room for, it does not show how well you are filling your property. That is where Revenue Per Available Room (RevPAR) comes in.",[1239],{"start":1240,"end":1241,"type":928,"data":1242},117,143,{"id":1243,"type":1091,"tags":1244,"lang":14,"slug":1245,"first_publication_date":722,"last_publication_date":1095,"uid":1246,"url":1247,"link_type":24,"isBroken":34},"aLcSbREAACkAsW-y",[],"why-it-matters","revpar-revenue-per-available-room","/en/glossary/revpar-revenue-per-available-room",{"type":1153,"text":1249,"spans":1250,"direction":932},"ADR measures the average price of sold rooms.",[1251],{"start":1187,"end":1252,"type":1133},3,{"type":1153,"text":1254,"spans":1255,"direction":932},"RevPAR measures the revenue generated across all available rooms (sold and unsold).",[1256],{"start":1187,"end":1257,"type":1133},6,{"type":922,"text":1259,"spans":1260,"direction":932},"These two KPIs can move in different directions. Here is an example of how that works:",[1261],{"start":1262,"end":1197,"type":928,"data":1263},10,{"link_type":215,"url":1264,"target":218},"https://www.smartness.com/en/blog/kpi-hotel",{"type":1153,"text":1266,"spans":1267,"direction":932},"Scenario A: You sell 10 rooms at $300. Your ADR is high ($300), but your total revenue is only $3,000.",[1268],{"start":1187,"end":1269,"type":1133},11,{"type":1153,"text":1271,"spans":1272,"direction":932},"Scenario B: You sell 90 rooms at $100. Your ADR is lower ($100), but your total revenue is $9,000.",[1273],{"start":1187,"end":1269,"type":1133},{"type":922,"text":1275,"spans":1276,"direction":932},"In Scenario A, focusing only on a high ADR hides the fact that most of your hotel is empty. RevPAR balances this by factoring in occupancy, offering a fuller picture of overall performance.",[],{"type":1143,"text":1278,"spans":1279,"direction":932},"What factors influence ADR?",[],{"type":922,"text":1281,"spans":1282,"direction":932},"Several internal and external factors influence ADR. These include:",[],{"type":1153,"text":1284,"spans":1285,"direction":932},"Economic conditions: In times of inflation or economic growth, travelers may accept higher rates, while downturns can increase price sensitivity.",[1286],{"start":1187,"end":1287,"type":1133},20,{"type":1153,"text":1289,"spans":1290,"direction":932},"Guest segmentation: Business travelers and luxury guests are often less price-sensitive than groups or wholesale bookings, which can support a higher ADR.",[1291],{"start":1187,"end":1292,"type":1133},19,{"type":1153,"text":1294,"spans":1295,"direction":932},"Room type mix: Selling a higher proportion of suites or premium view rooms raises overall ADR compared to selling mostly standard rooms.",[1296],{"start":1187,"end":1197,"type":1133},{"type":1153,"text":1298,"spans":1299,"direction":932},"Online reputation: Properties with higher review scores can often justify higher posted rates because guests perceive less risk and higher value.",[1300,1302],{"start":1187,"end":1301,"type":1133},18,{"start":1292,"end":1303,"type":928,"data":1304},55,{"id":1305,"type":701,"tags":1306,"lang":14,"slug":1307,"first_publication_date":1308,"last_publication_date":1309,"uid":1310,"url":1311,"link_type":24,"isBroken":34},"Z6I7QBIAACgANeUG",[],"reviews-everything-you-need-to-know-to-boost-your-margins","2025-02-05T09:27:37+0000","2025-11-17T14:39:40+0000","reviews-margins-revenue-management","/en/blog/reviews-margins-revenue-management",{"type":1153,"text":1313,"spans":1314,"direction":932},"Distribution strategy: Relying heavily on opaque channels or wholesale partners is often associated with a lower ADR compared to direct bookings or retail OTA rates.",[1315],{"start":1187,"end":1316,"type":1133},22,{"type":1143,"text":1318,"spans":1319,"direction":932},"How do you improve ADR in your hotel?",[],{"type":922,"text":1321,"spans":1322,"direction":932},"Improving ADR is not simply about raising your rack rate. It requires increasing perceived value and aligning prices with demand so guests see clear reasons to choose your property and room types.",[],{"type":1324,"text":1325,"spans":1326,"direction":932},"heading3","1. Implement dynamic pricing",[],{"type":922,"text":1328,"spans":1329,"direction":932},"Static price lists can miss shifts in demand. Revenue management software can automate rate adjustments based on real-time signals. This helps you align prices with busier periods and keep them appropriate during slower times, without abrupt swings.",[1330],{"start":1331,"end":1332,"type":928,"data":1333},46,103,{"id":420,"type":56,"tags":1334,"lang":14,"slug":422,"first_publication_date":423,"last_publication_date":424,"uid":425,"url":426,"link_type":24,"isBroken":34},[],"rich_text$484774e1-8a12-469a-b0a8-076270e59491","rich_text",{"variation":1338,"version":67,"items":1339,"primary":1340,"id":1357,"slice_type":1358,"slice_label":5},"light",[],{"title":1341,"description":1345,"link":1346,"image":1356},[1342],{"type":922,"text":1343,"spans":1344,"direction":932},"Want to start with revenue management? Read our complete guide",[],[],{"id":1347,"type":124,"tags":1348,"lang":14,"slug":1349,"first_publication_date":1350,"last_publication_date":1351,"uid":1352,"url":1353,"link_type":24,"key":1354,"isBroken":34,"text":1355},"Z8BjGxAAAB8AH5-e",[],"the-complete-guide-to-revenue-management","2025-02-27T13:05:44+0000","2025-12-19T14:06:52+0000","guide-to-revenue-management","/en/free-downloads/guide-to-revenue-management","8591f794-7401-4496-b2ba-690e6248fca9","Download for free",{},"blog_cta$15c905bd-020a-4378-be45-8f894c08715a","blog_cta",{"variation":32,"version":67,"items":1360,"primary":1361,"id":1402,"slice_type":1336,"slice_label":5},[],{"text":1362},[1363,1366,1379,1382,1390,1393,1396,1399],{"type":1324,"text":1364,"spans":1365,"direction":932},"2. Focus on upselling",[],{"type":922,"text":1367,"spans":1368,"direction":932},"Upselling can enhance the guest experience by highlighting options they may appreciate, such as paid upgrades to a suite or a better view before arrival. Automated tools can present these offers via email or messaging apps, making it easy for guests to choose enhancements on their own terms.",[1369],{"start":1187,"end":1370,"type":928,"data":1371},42,{"id":1372,"type":701,"tags":1373,"lang":14,"slug":1374,"first_publication_date":1375,"last_publication_date":1376,"uid":1377,"url":1378,"link_type":24,"isBroken":34},"Z7YGoxAAACIAX8vg",[],"psychology-of-upselling-in-hotels-heres-what-you-need-to-know-to-sell-more","2025-02-19T16:28:21+0000","2025-03-27T06:24:25+0000","psicologia-upselling-in-hotel","/en/blog/psicologia-upselling-in-hotel",{"type":1324,"text":1380,"spans":1381,"direction":932},"3. Manage your online reputation",[],{"type":922,"text":1383,"spans":1384,"direction":932},"Guests look for trust signals. A property with stronger ratings often has more flexibility in its pricing than a competitor with weaker scores, even when amenities are similar. Actively managing reviews and responding to feedback helps build social proof that supports a premium positioning.",[1385],{"start":1386,"end":1387,"type":928,"data":1388},177,229,{"id":476,"type":124,"tags":1389,"lang":14,"slug":478,"first_publication_date":479,"last_publication_date":480,"uid":481,"url":482,"link_type":24,"isBroken":34},[],{"type":1324,"text":1391,"spans":1392,"direction":932},"4. Target higher-value segments",[],{"type":922,"text":1394,"spans":1395,"direction":932},"Shift your marketing toward audiences that prioritize quality, convenience, or specific experiences—such as couples, business travelers, or wellness seekers—instead of competing strictly on price for budget travelers or large tour groups.",[],{"type":1324,"text":1397,"spans":1398,"direction":932},"5. Extend length of stay",[],{"type":922,"text":1400,"spans":1401,"direction":932},"Longer stays can streamline operations by reducing turnover tasks like housekeeping and check-in administration. Offering thoughtful incentives for extended visits can appeal to guests planning longer trips and can help smooth workload and occupancy patterns.",[],"rich_text$6787a508-6dd1-4260-b2dc-0fc11613de44","How to calculate Average Daily Rate for hotels | Glossary","High occupancy but weak margins? Learn how Average Daily Rate works, how to calculate it, and which strategies raise room revenue smartly.",{},{"prev":1407,"next":1411},{"title":1408,"link":1409},"Average cleaning time per room",{"to":1410},"/en/glossary/average-cleaning-time-per-room",{"title":1412,"link":1413},"Average length of stay (ALOS)",{"to":1414},"/en/glossary/average-length-of-stay-alos",1776762032805]