## ADR (Average Daily Rate)

The average revenue earned per booked night over a given period. Calculated by dividing total room revenue by total nights sold. A property earning $3,000 from 20 booked nights has an ADR of $150.

## RevPAR (Revenue Per Available Room)

A key metric combining occupancy and rate performance. Calculated as ADR × Occupancy Rate, or total revenue ÷ total available nights. RevPAR captures overall revenue efficiency better than ADR or occupancy alone.

## Occupancy Rate

The percentage of available nights that are booked over a given period. A property available 30 nights with 21 bookings has a 70% occupancy rate. Higher isn't always better — 100% occupancy often means you're priced too low.

## Dynamic Pricing

The practice of adjusting nightly rates based on real-time market conditions including demand, competition, seasonality, and events. Most successful STR operators use some form of dynamic pricing.

## Base Price

The default nightly rate before any dynamic adjustments. Your base price should reflect your property's fair market value compared to similar listings in your area.

## Minimum Stay

The fewest consecutive nights a guest must book. Strategic minimum stays (e.g., 2-night weekend minimums, 3-night holiday minimums) reduce turnover costs while maximizing revenue.

## Gap Night

An isolated unbooked night between two reservations that's difficult to fill. Gap nights represent lost revenue. Orphan night discounts or minimum stay adjustments help fill them.

## Lead Time

The number of days between when a booking is made and the check-in date. Long lead times (30+ days) indicate strong demand. Short lead times suggest last-minute travelers.

## Booking Window

The period during which guests typically book for a given date. Understanding your booking window helps you time price increases and last-minute discounts effectively.

## Comp Set (Competitive Set)

The group of similar properties in your area that compete for the same guests. Your comp set shares similar size, amenities, location, and quality level.

## Revenue Management

The strategic practice of optimizing pricing, inventory, and distribution to maximize revenue. In STR, this includes dynamic pricing, listing optimization, and demand forecasting.

## Seasonality

Predictable demand fluctuations based on time of year. Peak seasons command 30-100% higher rates, while off-seasons may require aggressive pricing or longer minimum stays.

## Event-Based Pricing

Adjusting rates for known demand drivers like concerts, festivals, conferences, sporting events, and holidays. Missing event-based pricing can cost $200-$500 per event.

## Listing Score

A composite rating of your listing's quality across multiple factors including photos, title, description, amenities, reviews, and pricing competitiveness. Higher scores correlate with better search placement and booking rates.

## Smart Pricing (Airbnb)

Airbnb's built-in dynamic pricing algorithm. It optimizes for Airbnb's marketplace goals (filling inventory) rather than host revenue, frequently underpricing high-demand nights by $30-$80.

## PMS (Property Management System)

Software that centralizes operations for vacation rental managers — handling bookings, guest communication, cleaning schedules, and channel management across platforms.

## Channel Manager

Software that synchronizes listing availability and pricing across multiple booking platforms (Airbnb, VRBO, Booking.com) to prevent double bookings and maintain consistent rates.

## Turnover Cost

The total cost of preparing a property between guests, including cleaning, laundry, restocking supplies, and inspection. Typical turnover costs range from $75-$200 per changeover.

## Length of Stay (LOS) Discount

A price reduction offered for longer bookings. Common discounts: 10-15% for weekly stays, 20-30% for monthly stays. Reduces turnover costs and guarantees income.

## Booking Velocity

The rate at which your listing receives new bookings over time. Increasing booking velocity typically indicates strong demand and may support price increases.

## See These Metrics for Your Listing

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