Vacation Rental KPIs: Occupancy, ADR, and RevPAR

Owners often ask whether a property is doing well. The answer starts with three metrics: occupancy, average daily rate, and RevPAR. None of them is enough alone. Together, they show how often the home is booked, what guests pay, and whether pricing and demand are working together.

Occupancy

Occupancy is the percentage of available nights that were booked during a period.

Occupancy = booked nights / available nights

High occupancy can be good, but 100 percent occupancy may mean the home was priced too low. Low occupancy may point to weak demand, high pricing, poor photos, bad reviews, or calendar restrictions.

ADR

Average daily rate shows the average rental revenue earned per booked night, excluding taxes and pass-through fees.

ADR = rental revenue / booked nights

ADR measures pricing power. It should be interpreted with seasonality and property type in mind. A luxury home and a smaller condo should not be judged on the same ADR target.

RevPAR

Revenue per available room, adapted for vacation rentals, combines occupancy and ADR into one efficiency metric.

RevPAR = ADR x occupancy rate, or rental revenue / available nights

How to Use the Metrics

• Compare the same month year over year, not only one month to the next.
• Separate owner blocks from true available nights.
• Look for whether rate increases reduced occupancy in a profitable or unprofitable way.
• Use metrics to ask better questions, not to declare victory from one number.