Average daily rate is just as it sounds. Since occupancy and rates can fluctuate throughout a season or year, Average Daily Rate gives you a handle on what your baseline rates are. It's not a problem if your rates vary, in fact, it's a good thing as you're likely responding to demand. But when compared with other similar marinas, your average daily rate shouldn't be well below or well above others without a good reason.
What is needed to calculate a marina's Average Daily Rate (ADR)?
- Total confirmed slip revenue
- Total confirmed linear feet sold
How to calculate a marina's Average Daily Rate (ADR)
A marina's ADR can be calculated using the following formula:
Rates throughout the year may fluctuate but finding an average daily rate can give you a tool by which to understand your marina's full earning potential. Getting on a marina management platform like Dockwa can help you automate that data collection and report on it.
You can store transient, long-term and winter storage bookings in one place whether you take payments by cash, check or credit card. But even if you're using a hand-written ledger to track your bookings, keeping track of your average daily rate can help you understand how your marina is performing year-to-year and enable you to run pricing experiments that could lead to greater revenue. When combined with other metrics, your average daily rate can tell you even more.