Average Daily Rate (ADR) is a metric that helps hotel owners recognise the average room rental per paid room per day. Usually calculated on a monthly, quarterly or annual basis depending on your plans and requirements, ADR is used to measure how well a hotel is performing in comparison with its competitors.
However, it’s not enough to measure the hotel as a sole metric. We’ve put together seven fresh ways in which you can increase your hotel ADR.
Pricing is considered as one of the most important factors when customers are choosing where to stay. When people are shopping around for hotels, they’ll often check comparison websites, direct hotel websites and even search engine results shopping for the best price.
When looking at setting a price, you’ll obviously have peak seasons and quiet times, so you should consider yield management to increase and decrease the prices as it fits. This will maintain a consistent flow and will help increase your ADR.
Just like guests shop around for the best prices, they also shop around for attractive deals and promotions too. When you offer a promotion, you’re gaining the upper hand on your competition and automatically making your hotel look much more appealing.
Not only will people take advantage of the promotion, but the likelihood is that they’ll also tell their friends and family about it too which creates a real buzz around your hotel.
Keeping tabs on what your competitors are pricing is a great way to ensure that you stay ahead of the game. Obviously, we’re not saying you should always charge less than your competitors to draw in your custom, but keep an eye out for any promotions they run or discounted offers so that you can think of ways to detract them from that and hopefully choose yours.
By analysing this metric, you’ll be able to weigh up where you stand with your competitors too.
Personalisation is a great way of increasing your ADR and luring your guests into booking with you often. Personalised emails or portals that tailor messaging and promotions to your guests make them feel valued and appreciated, which in turn goes a long way in increasing their chances of rebooking.
Detailed personal information allows you to look at different avenues to target them. If you can identify their buying habits and their personal preferences, you’ll know how to target them in the most effective way. This can then increase the chances of bookings being made.
Festivals, sporting events and celebrations happen all year round all over the world. That means it's likely there will something of interest happening in close proximity to the hotel.
Guests will pay extra for entertainment and will justify the trip more if they’re going to an event, so by promoting this event and maybe even including a ticket bundle deal, you can attract more guests and ramp the ADR level up.
Discount codes for repeat bookings are a great way to drive repeat business. Failing that, some businesses offer a reward for filling in their guest satisfaction surveys.
For example, if they fill out the satisfaction survey, they're entered into a prize draw for a return stay at a discounted price.
If a guest has had a great time when staying at your hotel, the likelihood is that they’ll gladly come back again. Not only this but they’ll also spread the word to their family and friends which will drive brand awareness too.
Encourage them to share their good experiences on social media and this will get the word out about your brand.
Quite simply, one way to increase ADR is by doing the leg work with your marketing channels. Multi-channel marketing can be increasingly effective when it comes to enticing people to book into your hotel.
Whether it’s paid ads online that pop up to people who have stayed before or looked at something similar, or even a printed brochure of your hotel that will sit on a coffee table at the hairdressers - every little helps!
Want to Learn More on How to Please Your Guests All the Time?
As we’ve said, repeat custom is great for ADR. But one way in which you can definitely attract people to return to your hotel is by providing an amazing service. Receiving good service can make or break their trip, so it needs to be spot on.
So, how can you keep your guests happy all the time? Well, we’ve put together a one-stop guide that includes everything you need to know, from useful advice to actionable tips.
Download your free copy below and take the first step.