Recruiter's Glossary

Examples: BAR (Best Available Rate) • No-Show • Late Check-out

ADR (Average Daily Rate)

Term from Hospitality industry explained for recruiters

ADR (Average Daily Rate) is a key measurement used in the hotel and hospitality industry to understand how much money a hotel makes from its rooms on average per day. It's calculated by dividing the total room revenue by the number of rooms sold. This number helps hotel managers and owners track their business performance and make decisions about pricing. Think of it like the average price tag on a hotel room for a single night. It's similar to other hotel metrics like RevPAR (Revenue Per Available Room) or occupancy rate, but ADR specifically focuses on the actual prices guests are paying for rooms.

Examples in Resumes

Increased ADR by 15% through strategic room pricing and upgrade promotions

Managed property achieving highest Average Daily Rate in the regional market

Led team that improved ADR through effective revenue management strategies

Typical job title: "Revenue Managers"

Also try searching for:

Hotel Revenue Manager Revenue Management Director Hotel Operations Manager Hospitality Manager Room Division Manager Hotel General Manager

Where to Find Revenue Managers

Professional Organizations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you develop a strategy to improve ADR during low season?

Expected Answer: A senior candidate should discuss multiple approaches including market segmentation, package creation, corporate partnerships, and dynamic pricing strategies while considering the impact on overall revenue and occupancy rates.

Q: How do you balance ADR growth with maintaining occupancy rates?

Expected Answer: Should demonstrate understanding of the relationship between price and demand, discussing strategies for different market conditions and seasons, while maintaining profitability.

Mid Level Questions

Q: What factors do you consider when setting room rates to optimize ADR?

Expected Answer: Should mention competitor pricing, local events, seasonal demand, operating costs, and target market preferences while explaining how these affect daily rates.

Q: How do you track and analyze ADR trends?

Expected Answer: Should explain use of reports, comparison periods, market data, and basic revenue management tools to monitor and improve ADR performance.

Junior Level Questions

Q: Can you explain how ADR is calculated?

Expected Answer: Should be able to explain that ADR is total room revenue divided by number of rooms sold, and understand basic factors that influence it.

Q: What's the difference between ADR and RevPAR?

Expected Answer: Should explain that ADR looks at revenue per occupied room while RevPAR considers all rooms including vacant ones, showing basic understanding of hotel metrics.