Gross revenue is the number hosts like to quote, but it hides a lot. Two numbers tell the real story, and they're easy to calculate if you log bookings.
Occupancy rate = nights booked / nights available, for a period. A property that made $3,000 at 40 percent occupancy and one that made $3,000 at 90 percent occupancy are in very different shape. The first has pricing room. The second is maxed out and needs either a higher rate or another unit.
ADR (average daily rate) = revenue / nights booked. This is what you're actually getting per night after the calendar reality, not your listed rate.
Put them together and you get RevPAR (revenue per available night) = ADR times occupancy, which is the fairest way to compare properties or months against each other.
The platform question: if you're on Airbnb and VRBO both, compare them by ADR and occupancy, not by gross. One platform often books more nights at a lower rate; the other fewer nights at a higher rate. Knowing which is which changes how you price on each.
Our Short-Term Rental Tracker calculates occupancy, ADR, and revenue by platform per property per month from a simple bookings log. If you'd rather build your own, the formulas above are all you need.
Occupancy rate and ADR: the two numbers that tell you if a short-term rental is actually working
OfficialBlackVortex Digital · 2 days ago · 0 replies