ADR & RevPAR explained
The most important short-term rental metrics · ← All guides
Anyone who wants to run a vacation rental profitably must understand two metrics: ADR and RevPAR. They're the language of revenue management – and the key to making pricing decisions based on data, not gut feeling.
What is ADR (Average Daily Rate)?
ADR is the average price per night actually rented:
ADR = room revenue ÷ nights sold
Example: €2,800 revenue across 20 rented nights gives an ADR of €140. But ADR says nothing about vacancy – a high price helps little if hardly anyone books.
What is RevPAR (Revenue per Available Night)?
RevPAR fixes exactly this weakness. It measures revenue per available night – including vacancy:
RevPAR = room revenue ÷ all available nights (or: ADR × occupancy)
Example: €2,800 revenue across 30 available nights = €93 RevPAR. Because RevPAR combines price and occupancy, it's the most honest metric for a property's performance. That's exactly what our RM Revenue optimizes.
Dynamic pricing explained
Dynamic pricing means continuously adjusting the nightly rate to demand – instead of charging the same price all year. Weekends, holidays, trade fairs, concerts, and short-term demand spikes are detected and monetized; during low-demand periods, targeted last-minute discounts fill the calendar. The result is a significantly higher RevPAR for the same apartment.
PriceLabs guide – the engine behind the price
PriceLabs is one of the leading dynamic pricing tools worldwide. It analyzes market data, occupancy trends, and events to calculate an optimal price for every night. The interplay of systems is key:
| PriceLabs | optimizes pricing (dynamic pricing) |
| PMS (Guesty, Hostaway, Smoobu …) | manages bookings & calendars |
| CENTCOM | automates day-to-day operations |
Our software CENTCOM applies the prices calculated by PriceLabs automatically and connects them with communication, housekeeping, and reporting – three systems, one infrastructure.
Frequently asked questions
RevPAR, because it evaluates price and occupancy together. A high ADR with a lot of vacancy is worse than a moderate ADR with good occupancy.
Not absolutely, but a professional dynamic pricing tool measurably increases RevPAR. We set it up and manage it for you as part of RM Revenue.
Across our portfolio, +22% RevPAR on average. For what co-hosting delivers overall, read What is co-hosting?
Free revenue audit
We'll show you how much RevPAR your property is leaving behind.