Glossary & framework library

ADR

Hospitality

Reference

Average Daily Rate - room revenue divided by rooms sold.

Related terms

  • Average length of stay (ALOS)

    The mean number of nights a guest stays per booking; higher ALOS cuts housekeeping and check-in turnover costs, which is why Red Sea and Gulf resorts chase lon…

  • Branded residence

    Homes affiliated with a hotel brand, offering services and a price premium.

  • Corporate vs leisure demand

    The split between business travellers (midweek, rate-driven, short lead time) and leisure guests (weekend and holiday, longer stays, more price-elastic); the m…

  • Demand generator

    A source of hotel demand such as an attraction, business district, or event.

  • Demand segmentation

    The breakdown of hotel demand into distinct booking sources (corporate, leisure, group, government, wholesale) so revenue managers can price and forecast each…

  • Feeder market

    The source cities or countries that supply a destination's guests; for Gulf and Egyptian resorts the classic feeders are the UK, Germany, Russia, and increasin…

  • Franchise agreement

    A deal to operate a hotel under a brand name and standards for a fee.

  • GOPPAR

    Gross Operating Profit per Available Room, a profitability measure for hotels.