Financial Glossary
ADR vs. RevPAR
Average Daily Rate (ADR) measures the average rental revenue earned per occupied room or unit, reflecting pricing alone. Revenue Per Available Room (RevPAR) divides room revenue by all available rooms or unit-nights, so it blends both pricing and occupancy. ADR can look strong while RevPAR stays weak if many units sit empty, which is why the two metrics are read together.
Problem & Application
A short-term-rental or campground operator can raise ADR by charging more per night, but if that pushes occupancy down, RevPAR may fall and total revenue with it. Comparing the two reveals whether to compete on rate or on fill, and how seasonality is really affecting the property. Watching RevPAR alongside ADR keeps pricing decisions tied to the revenue that actually reaches the books.
In Short
ADR isolates pricing while RevPAR captures both pricing and occupancy, so operators use them together to judge whether revenue strategy is working.