ADR, RevPAR and occupancy explained for holiday-rental hosts

Three numbers tell you whether your pricing works. Here is what each one means and how to calculate it.

Occupancy rate

occupancy = nights booked ÷ nights available

21 nights booked in a 30-day month = 70%. With several properties, available nights = days × properties.

ADR (average daily rate)

ADR = revenue ÷ nights booked

€2,600 ÷ 21 nights = €123.81. ADR tells you what you earn on the nights you do sell.

RevPAR (revenue per available night)

RevPAR = revenue ÷ nights available = ADR × occupancy

€2,600 ÷ 30 = €86.67. RevPAR combines price and occupancy, so it's the best single number for comparing months, properties or pricing strategies.

Which one should you watch?

Raising prices increases ADR but can lower occupancy. Discounting fills the calendar but lowers ADR. RevPAR shows whether the trade-off paid off. Track all three per month and per property, and compare the same month year on year to account for seasonality.

Calculate yours with the free calculator or read how to calculate your real profit.