In this article, we will look at metrics given in several reports and the ways they are calculated.
Learn the difference between the “revenue” and “payment” notions.
Average daily rate (ADR) — the average cost of a room for a night. It is calculated by dividing the net revenue from the inventory sales (after taking away discounts, indirect taxes, and the cost of meals) by the number of room nights sold. It is calculated by the formula: ADR = Room revenue / Room nights sold.
Average length of stay (ALS) — it is calculated by dividing the total number of nights spent at the hotel by the number of bookings. It is calculated by the formula: ALS = Total number of nights/ number of bookings.
Average revenue per room (RevPar) — it is calculated by dividing the revenue from the sold rooms by the number of rooms available. The formula: Room revenue / Hotel’s inventory — Rooms under maintenance.
Average revenue per client (RevPAC) — it is calculated by dividing the room revenue (taking away the service fees) by the number of beds sold within the selected period. It is calculated by the formula: RevPAC = (Total invoice amount — Service fees) / (Number of adult beds sold + number of kid beds sold).
OCC — the hotel’s occupancy percentage. It is calculated by the formula: (Total room nights sold for the period / Total room nights offered during the selected period) *100%
Reservation window — the average number of days between the booking and the specific dates or months of stay. It is calculated by the formula: Reservation window = The total of days between the booking and check-in dates / The number of rooms booked.
Average cancellation window — the average number of days between the check-in date and the cancellation date. Reservation window = The total of days between the cancellation and check-in dates / The number of rooms canceled.