Those four numbers are occupancy, ADR (average daily rate), RevPAR (revenue per available night) and booking pace. On their own they describe your listings. Compared with similar listings in the same market, they tell you what to change. This section defines each one, gives the formula, works an example and shows how they fit together.
The metrics at a glance
| Metric | Formula | Answers | Hotel name |
|---|---|---|---|
| Occupancy | booked nights ÷ available nights | How full were we? | Occupancy |
| ADR | accommodation revenue ÷ booked nights | What did a booked night sell for? | ADR |
| RevPAR | accommodation revenue ÷ available nights = occupancy × ADR | What did each available night earn? | RevPAR |
| MPI | your occupancy ÷ market occupancy | Are we filling more or fewer nights than the market? | MPI / occupancy index |
| ADR index | your ADR ÷ market ADR | Are we charging more or less than the market? | ARI (average rate index) |
| RevPAR index | your RevPAR ÷ market RevPAR = MPI × ADR index | Are we earning more or less per night than the market? | RGI (revenue generation index) |
| Booking pace | nights on the books now vs a reference at the same lead time | Are future nights filling faster or slower than expected? | Pace / pickup |
| Booking window | average days between booking and check-in | How far ahead do guests book? | Lead time |
Indices are shown as decimals on this site (1.00 = market). Hotel reports multiply by 100 (100 = market).
How they fit together
RevPAR is occupancy multiplied by ADR, so RevPAR index is MPI multiplied by ADR index. If your RevPAR index is 0.94, you can always split it into an occupancy part and a rate part. For example, an MPI of 1.04 and an ADR index of 0.904 give 1.04 × 0.904 = 0.94. That tells you rate, not demand, is the gap. Booking pace and booking window then tell you when in the calendar to fix it.
One portfolio, all four numbers
Here is how the metrics combine for a single month in a 20-listing portfolio (illustrative figures):
- Occupancy 68% against a market of 64%, so MPI = 68 ÷ 64 = 1.06
- ADR $230 against a market of $250, so ADR index = 230 ÷ 250 = 0.92
- RevPAR index = 1.06 × 0.92 = 0.98, so the portfolio earned 2% less per available night than comparable listings
The portfolio was busier than the market but earned less. Rate is the gap, not demand. The next question is where in the calendar: forward MPI by booking window shows whether the cheap nights are being sold 60 days out (raise far-out rates) or in the final week (soften the last-minute discount). Booking pace then tells you whether the coming month is filling faster or slower than the market, before it shows up in revenue.
RevPAR vs ADR: which matters more?
RevPAR, because it counts the nights you did not sell. ADR only describes the nights you did. You can raise ADR by pricing so high that half the calendar stays empty, and you can raise occupancy by pricing so low that every night sells at a loss to the market. Take two listings: one at 95% occupancy and $180 ADR, one at 55% and $320. Their RevPAR is almost identical ($171 and $176), and a balanced listing at 79% and $256 beats both at $202.24. Use ADR and occupancy to diagnose. Use RevPAR to judge.
Which metric to check, when
- Every morning: forward MPI by booking window (0-14, 15-30, 31-60, 61-90 days) and pace against expectation.
- Weekly: ADR index on booked nights, minimum-stay effects, orphan nights.
- Monthly: RevPAR index per listing and per portfolio. Report it to owners with market occupancy and ADR alongside.
- Quarterly: comp sets, base prices and seasonal profiles.
How to report these metrics to owners
Owners usually see revenue and occupancy only, which makes a quiet month in a quiet market look like a failure. A short monthly line per property fixes that: the property’s RevPAR index, the market’s occupancy and ADR for the same dates, and one sentence on what changed. “The market fell 9% in June; your property held its index at 1.04” is a conversation an owner can accept.
Common mistakes
- Including cleaning fees in ADR. This inflates ADR and RevPAR and breaks comparisons with market data, which usually excludes fees.
- Counting owner blocks as available nights. Occupancy looks worse than pricing deserves.
- Comparing with the whole city. Compare a 2-bedroom unit with 2-bedroom units nearby.
- Ignoring long stays. One 28-night booking at a monthly rate can lift occupancy and drag ADR at the same time.
- Switching market data sources. Different providers define “active listing” and “available night” differently.
Metric pages
Try it on your numbers: RevPAR index calculator. For when the numbers say it’s time for help, read when to hire a revenue manager, see our market reports or how our revenue management service uses these checks every morning.
FAQ
What is the most important metric for a vacation rental?
RevPAR index: your revenue per available night compared with similar listings. It captures occupancy and rate together and removes the effect of a strong or weak season.
What is the difference between RevPAR and ADR?
ADR is revenue divided by nights sold. RevPAR is revenue divided by nights available. RevPAR equals ADR multiplied by occupancy, so it drops when nights go unsold and ADR does not.
Are these the same metrics hotels use?
Yes, with the same formulas. Hotels compare against a hand-picked set of competing hotels using STR (CoStar) data. Vacation rentals usually compare against a filtered set of similar listings from a market data or pricing tool.
What is a good occupancy rate for a vacation rental?
It depends on the market and segment, which is why we compare it to the market (MPI) rather than to a fixed number. High occupancy with a low ADR index is usually underpricing.