Back to Basics: Occupancy and ADR

[bdjakaria76]

Let’s start by looking at occupancy and ADR as we did in the previous sections, but this time compared to our market. While we can do this for many different time ranges, let’s look just at last year as a baseline.

‍

Given the ever present discrepancy in the baskets of listings, there will always be some deviation. In the case below, this property manager’s ADRs are almost always less than the market; however, their occupancy always tends to be higher as well.


Source: Beyond Dashboard
Going one step further, we can see how this deviation in occupancy and ADR affects what we truly care about—total revenue per listing per day. This property manager tends to be b2b email list below the market, on average, due to the quality of their listings. It’s most noticeable the week before July 4th, where the average is $266 (whereas the market’s at $305), mostly due to the lower ADRs we can see above.


Source: Beyond Dashboard
History is, Well, History
We can’t change what’s already happened, so let’s look ahead to this year and see how this property manager is comparing to the market and what actionable insights we can gain. Analyzing pace data against the market for future dates is the best way for property managers to stay proactive with their revenue management strategy and spot issues ahead of time, which allows for more time to course correct.

‍

We can see again that, on average, the ADRs are still below the market. June and July, however, are much closer to the market, most likely due to rising rates from an increase in demand.

‍