Definition
Average daily rate (ADR) is the average revenue earned per occupied room in hospitality industry. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Average daily rate (ADR) on the board and restates it: “Average revenue earned per occupied room in hospitality industry.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Average daily rate (ADR) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Average collection period
Time it takes for a company to collect payments from its customers.
Read definition →
Average order value (AOV)
Average amount spent by customers in a single transaction.
Read definition →
Average revenue per account (ARPA)
Average revenue generated from each customer account over a period.
Read definition →
Average revenue per user (ARPU)
Average revenue generated from each user or customer over time.
Read definition →
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