Rate
ADR
Average daily rate (ADR) is the average rent earned for each night a guest stayed, found by dividing rent revenue by sold nights. Pacer's ADR leaves out cleaning fees and taxes unless a with-fees version is named.
ADR only counts nights that sold. Open, owner and blocked nights do not pull it down, so it tells you about the rate you earned, not about demand. Pacer's formal name for it is rent per sold night.
Also called: Average nightly rate, Rent per sold night
Formula
ADR = rent revenue / sold nights
Worked example Sample month
$5,280 rent revenue / 22 sold nights = $240.00
Check: $240.00 x 22 nights = $5,280
Variants
- With fees: (rent revenue + fees) / sold nights. See ADR including fees.
How to read it
Compare ADR with the same month last year for the same homes. A higher ADR with fewer nights sold can mean rates rose faster than demand.
Read more: What ADR tells you, and what it hides
Related: ADR including fees, Occupancy, RevPAR, Rack Rate
ADR (+ fees)
ADR including fees, also called gross ADR or total ADR, counts every dollar a booking brought except tax: rent plus all guest fees, cleaning included, divided by sold nights. It runs higher than rent-only ADR whenever fees are charged.
Pacer's headline ADR is rent only. Use the with-fees version only when the source you compare against also counts fees.
Also called: Gross ADR, Total ADR, Rent and fee per sold night
Formula
Gross ADR = (rent revenue + all guest fees) / sold nights
Worked example Sample month
Fees in the sample month: 6 stays x $220 cleaning fee = $1,320
($5,280 rent + $1,320 fees) / 22 sold nights = $6,600 / 22 = $300.00
How to read it
The gap between gross ADR and ADR is the fee income per sold night. It is not extra rate.
Read more: Fees and length of stay
Related: Average Daily Rate (ADR), Total RevPAR, Rent Revenue
Rack rate
Rack rate is the standard nightly price published for a night before discounts, fees and taxes. It shows the price you are asking, while ADR shows what the nights that sold actually earned, which is often lower after discounts and rate changes.
A rack rate changes as the calendar changes. Once a night sells, the rent that was paid becomes part of ADR.
Also called: Published rate, Listed nightly rate
Not to be confused with: A base price setting in a pricing tool. A base price is an input the tool builds nightly rates from, not a published rate.
Worked example Sample month
Jun 28 is still open and listed at $275. The nights that sold this month earned $240.00 on average.
How to read it
A rack rate far above ADR on open nights can mean those nights are priced above what guests have been paying.
Related: Average Daily Rate (ADR), ADR including fees
Nights and occupancy
Nights available
Nights available are the nights a guest could have taken: a home's calendar nights minus owner, hold, blocked (maintenance included) and comp nights. Nights outside the home's service window are left out too. They are the denominator for adjusted occupancy and adjusted RevPAR.
Three counts are easy to mix up. Calendar nights are every night in the period. Nights available remove the nights the home could not sell to a paying guest. Open nights are nights available that have not sold. Some tools use "available" for open nights only, so check the definition before comparing.
Also called: Available nights, Available room nights
Formula
Nights available = calendar nights - (owner + hold + blocked + comp nights)
Open nights = nights available - sold nights
Worked example Sample month
30 calendar nights - 5 owner, hold and maintenance nights = 25 nights available. The home was in service all month and had no comp nights.
25 nights available - 22 sold nights = 3 open nights
Check: 22 sold + 5 off sale + 3 open = 30 calendar nights
How to read it
If nights available shrink from year to year because of more owner use or maintenance, plain occupancy falls even when the home sold as well as before. Adjusted occupancy does not.
Related: Owner, Hold and Blocked Nights, Adjusted Occupancy, Adjusted RevPAR, Sold Nights
Owner, hold and blocked
Owner, hold and blocked nights are nights a home is kept off sale. Owner nights are nights the owner took. Hold nights are covered by a calendar placeholder. Blocked nights are nights the manager closed, for maintenance or anything else. Pacer removes them, along with comp nights, from the denominator of adjusted occupancy and adjusted RevPAR.
Pacer keeps owner nights separate from blocked nights, because a night the owner took is costed against the owner and a night the manager closed is not.
Also called: Owner stays, Owner holds, Blocked nights, Maintenance nights
Formula
Nights off sale = owner + hold + blocked + comp nights
Worked example Sample month
Jun 7 (maintenance), Jun 8 and 9 (owner stay), Jun 21 and 30 (holds) = 5 nights
25 nights available = 30 calendar nights - 5 nights off sale
How to read it
Do blocked nights affect occupancy? In plain occupancy, they count against it. In adjusted occupancy they do not. Tools that remove only some of these nights will show a different figure, so check the definition.
Related: Nights Available, Adjusted Occupancy, Occupancy
Sold nights
Sold nights are the nights a paying guest held a home during a period. Each night of a stay counts once, in the month it falls. Owner, hold, blocked and comp nights and cancelled bookings are not counted.
A 4-night stay that crosses a month end counts some nights in each month. Official tourism statistics use "guest nights" for something else: one person staying one night. Sold nights count homes, not people.
Also called: Nights sold, Booked nights
Formula
Sold nights = nights in confirmed stays that paid rent
Worked example Sample month
Nights per confirmed stay: 2 + 4 + 4 + 7 + 3 + 2 = 22 sold nights
The cancelled booking (R7, 4 nights) is not counted.
Related: Occupancy, Adjusted Occupancy, Length of Stay (LOS), Cancellation Rate
Occ
Occupancy is the share of calendar nights in a period that were sold to paying guests. Divide sold nights by every night in the period, including owner, hold and blocked nights, so they lower it. Adjusted occupancy removes those nights.
Pacer calls this paid occupancy. What counts as a good occupancy rate depends on the market and the season, so compare a home with its own past and with its market.
Also called: Occupancy rate, Paid occupancy
Not to be confused with: "Calendar occupancy" in some tools, which also counts owner and hold nights as occupied.
Formula
Occupancy = sold nights / calendar nights
Worked example Sample month
22 sold nights / 30 calendar nights = 73.3% (exact fraction 22/30)
Variants
- Adjusted occupancy: sold nights / nights available. See Adjusted Occupancy.
How to read it
Plain occupancy tells you how much of the whole calendar sold. It does not separate unsold nights from nights the home could not sell.
Read more: What is a good Airbnb occupancy rate, How to improve occupancy
Related: Adjusted Occupancy, Sold Nights, Owner, Hold and Blocked Nights, RevPAR
Adj. occupancy
Adjusted occupancy, which Pacer calls adjusted paid occupancy, is sold nights divided by nights available. Owner, hold, blocked and comp nights, and nights outside the service window, are removed, so it measures how well a home sold the nights it could sell. Each home's month caps at 100%.
The word "paid" means only nights stayed by paying guests count in the top number.
Also called: Adjusted paid occupancy, Adj. paid occupancy
Formula
Adjusted occupancy = sold nights / nights available
Worked example Sample month
22 sold nights / 25 nights available = 88.0% (exact fraction 22/25)
Plain occupancy for the same month: 22 / 30 = 73.3%. The difference is the 5 nights off sale.
Variants
- Plain (paid) occupancy: sold nights / calendar nights. Owner, hold and blocked nights stay in the denominator.
How to read it
Adjusted occupancy is the fair read of selling performance when owners use the home. Pacer's reports use the adjusted version.
Related: Occupancy, Owner, Hold and Blocked Nights, Nights Available, Adjusted RevPAR
RevPAR
RevPAR, or revenue per available night, is rent revenue divided by every calendar night in a period, sold or not. It combines rate and occupancy in one number, because RevPAR equals ADR multiplied by occupancy.
Plain RevPAR counts owner, hold and blocked nights as available. Adjusted RevPAR does not. Pacer's headline figure is the adjusted one.
Also called: Revenue per available night, Revenue per available rental, Revenue per available room
Formula
RevPAR = rent revenue / calendar nights = ADR x occupancy
Worked example Sample month
$5,280 rent revenue / 30 calendar nights = $176.00
Check: $240.00 ADR x (22/30 occupancy) = $176.00
Variants
- Adjusted RevPAR: rent revenue / nights available. Pacer's headline version.
- With fees (total RevPAR): (rent revenue + fees) / calendar nights. See Total RevPAR.
How to read it
RevPAR rises when rate rises, when occupancy rises, or both. Look at ADR and occupancy next to it to see which one moved.
Read more: What is RevPAR, RevPAR vs ADR vs occupancy, Pacer ROI calculator
Related: Adjusted RevPAR, Average Daily Rate (ADR), Occupancy, Total RevPAR
Adj. RevPAR
Adjusted RevPAR is rent revenue divided by nights available, meaning calendar nights minus owner, hold, blocked and comp nights. It shows how well a home earns on the nights it could actually sell, and it equals ADR times adjusted occupancy.
Pacer measures its results with same-store adjusted RevPAR: the same homes, compared with the same period a year earlier.
Also called: Adj. RevPAR, Revenue per available rental night
Not to be confused with: Net RevPAR, a hotel term that usually means revenue after distribution costs per available room.
Formula
Adj. RevPAR = rent revenue / nights available = ADR x adjusted occupancy
Worked example Sample month
$5,280 rent revenue / 25 nights available = $211.20
Check: $240.00 ADR x (22/25 adjusted occupancy) = $211.20
Plain RevPAR for the same month is $176.00. The gap exists because 5 nights off sale come out of the denominator.
Variants
- With fees (total adjusted RevPAR): (rent revenue + fees) / nights available = $6,600 / 25 = $264.00
- Plain RevPAR: rent revenue / calendar nights. Owner, hold and blocked nights stay in the denominator.
How to read it
Compare adjusted RevPAR with plain RevPAR. A big gap means owner, hold and blocked nights are a large part of the calendar. Compare year over year only same-store.
Read more: What is RevPAR, Pacer ROI calculator
Related: RevPAR, Adjusted Occupancy, Owner, Hold and Blocked Nights, Same-Store Comparison
Total RevPAR, also called gross RevPAR, is rent plus guest fees such as cleaning fees, divided by calendar nights. Taxes are left out. Use it only against sources that also count fees, because Pacer's standard RevPAR is rent only.
The same fee choice applies to adjusted RevPAR, which can also be shown with fees.
Also called: Gross RevPAR, Rent and fee per calendar night
Not to be confused with: TRevPAR, a hotel measure of total hotel revenue per available room, which adds every hotel revenue stream.
Formula
Total RevPAR = (rent revenue + fees) / calendar nights = gross ADR x occupancy
Worked example Sample month
($5,280 rent + $1,320 fees) / 30 calendar nights = $6,600 / 30 = $220.00
On nights available: $6,600 / 25 = $264.00
Variants
- Total adjusted RevPAR: (rent revenue + fees) / nights available.
Related: RevPAR, ADR including fees, Adjusted RevPAR
Revenue
Rent revenue
Rent revenue is the accommodation revenue earned from guest stays, with cleaning fees, other fees and taxes left out. Pacer reports rent revenue by default and names the version, such as revenue with fees, when a different one is used.
Names differ by tool. Rental revenue means the same as rent revenue. In Pacer, revenue with fees is every dollar a booking brought except tax: rent plus all guest fees, cleaning included. Gross booking revenue in other tools usually means rent, fees and taxes, everything the guest paid.
Also called: Rental revenue, Accommodation revenue
Formula
Rent revenue = sum of nightly rent for nights stayed in the period
Worked example Sample month
Rent revenue: $5,280 across 22 sold nights
Fees: 6 stays x $220 cleaning fee = $1,320
Rent with fees: $5,280 + $1,320 = $6,600
Variants
- Rent revenue (Pacer standard): sum of nightly rent. Fees and taxes out.
- Revenue with fees: rent revenue + fees. Taxes out.
- Gross booking revenue: rent revenue + fees + taxes. Everything the guest paid.
Related: Rent After Manager Take, Average Daily Rate (ADR), ADR including fees
Rent after take
Rent after manager take is rent revenue minus the property manager's share of it. It estimates what is left of the rent for the owner once the manager's take is off.
Pacer picks the manager rate in this order: the rate the operator entered for the homes, then the rate measured from the bookings themselves, then an assumed rate. Every figure says which basis it uses.
Formula
Rent after manager take = rent revenue x (1 - manager rate)
Worked example Sample month
If the operator entered a 20% rate: $5,280 x (1 - 0.20) = $4,224
How to read it
This is a rent figure, not an owner payout. It does not take out channel commissions, fees, taxes or the owner's costs.
Related: Rent Revenue, Adjusted RevPAR
Booking behavior
Booking window
Booking window, often called lead time, is the number of days between the date a guest booked and the check-in date. The average booking window is the mean of those gaps across the bookings made in a period, and it shows how far ahead guests plan.
Pacer averages over bookings made in the period, not stays that arrive in it. The two give different answers, so check which one a report uses. A median also gives a different result when a few very early bookings pull the average up.
Also called: Lead time, Booking lead time, Average booking window
Formula
Booking window (days) = check-in date - booked date
Average = sum of booking windows / bookings made in the period
Worked example Sample month
Bookings made in June: R5 (13 days ahead) and R6 (14 days ahead)
(13 + 14) / 2 = 13.5 days average booking window
Averaged over the six stays that arrive in June instead: 208 / 6 = 34.7 days. Same home, different question.
How to read it
A short booking window means guests book late, so rates can be adjusted closer to arrival. A long one means rates are being set far ahead.
Read more: Booking window strategy
Related: Booking Pace, Pickup, Length of Stay (LOS)
LOS
Length of stay (LOS) is the number of nights in one booking. Average length of stay is the nights of the stays arriving in a period divided by check-ins, and it shows whether guests book short trips or long ones.
Minimum-stay rules and the mix of trip types both move average LOS. A minimum stay is a setting that sets the shortest booking allowed, not a metric.
Also called: Average LOS, ALOS, Average length of stay
Formula
LOS = check-out date - check-in date
Average LOS = nights of arriving stays / check-ins
Worked example Sample month
Stay R4: Jun 14 to Jun 21 = 7 nights
Average: 22 nights / 6 check-ins = 3.67 nights
Read more: Fees and length of stay
Related: Sold Nights, Booking Window (Lead Time)
Cancel rate
Cancellation rate sets the stays due to arrive in a period that were cancelled against the bookings made in that period. Over a long enough period, such as a quarter or a year, it reads as the share of bookings later cancelled.
The two counts cover different bookings, so over a single month the rate swings. Read it over a quarter or a year. Pacer leaves cancelled stays out of revenue, occupancy and pace comparisons in both years.
Formula
Cancellation rate = cancelled stays due to arrive in the period / bookings made in the period
Worked example Sample month
Due to arrive in June and cancelled: R7 = 1
Bookings made in June: R5 and R6 = 2
1 / 2 = 50.0%. One month is too short a window, which is why the rate is read over a longer period.
How to read it
A cancelled night is a night that can sell again, so a high rate does not always mean lost revenue. It matters most close to arrival.
Related: Sold Nights, Pickup, On the Books (OTB)
Pace and pickup
OTB
On the books (OTB) is the sold nights, and the rent on them, already reserved for a future period, counted as of a specific date. Only confirmed reservations count, so a booking that is later cancelled is dropped.
OTB always needs an as-of date, because the number changes every day bookings come in or cancel.
Also called: OTB report, Booked ahead
Formula
OTB = sold nights and rent of confirmed reservations for a future period, as of a date
Worked example Sample month
As of May 31, June OTB was R1 + R2 + R3 + R4: 17 nights and $3,960 across 4 reservations.
The other confirmed stays were booked after May 31. Booking R7 cancelled, so it is dropped.
Related: Booking Pace, Same Time Last Year (STLY), Pickup
STLY
Same time last year (STLY) is what the same period had on the books at the same point the year before, for example last June's bookings as they stood on May 31 last year. It is the fair comparison for pace.
STLY is rebuilt from when each reservation was created and cancelled, so last year's figure is the as-of-that-day view, not the final result. Last year's final result for the same dates is a different comparison.
Formula
STLY = OTB for the same period last year, as of the same distance out
Worked example Sample month
Same home, last June, as of May 31 last year: 15 nights and $3,300 on the books (invented for illustration).
This year's May 31 OTB was 17 nights and $3,960.
Related: Booking Pace, On the Books (OTB)
Pace
Booking pace compares what is on the books for a future period with what was on the books at the same point last year. A positive pace means the home is booking ahead of last year, and a negative pace means it is behind.
Pace looks forward. It is the early read on a month before the month happens.
Also called: Pacing, Pace vs STLY
Formula
Pace % = (OTB / STLY) - 1
Worked example Sample month
Rent: $3,960 / $3,300 - 1 = +20.0%
Nights: 17 / 15 - 1 = +13.3%
Rent is ahead of last year by more than nights, so rate is also ahead.
Variants
- By rent: (OTB rent / STLY rent) - 1. Includes rate changes.
- By nights: (OTB nights / STLY nights) - 1. Volume only.
How to read it
Read pace for nights and for rent side by side. Ahead on nights and behind on rent means volume came at a lower rate.
Read more: Market pacing
Related: On the Books (OTB), Same Time Last Year (STLY), Pickup
Pickup is the nights and revenue booked during a recent window, such as the last 14 or 30 days, counted by the date each booking was made. Cancelled bookings are not counted, so pickup shows demand that held.
Pickup is about when the booking was made, not when the guest stays.
Formula
Pickup = nights and rent of never-cancelled reservations booked within the window
Worked example Sample month
Window: booked May 2 to May 31 (30 days)
R1 and R3: 6 nights and $1,460 across 2 reservations
Booking R7 was made in the window but cancelled, so it is not counted.
Related: Booking Pace, On the Books (OTB), Cancellation Rate
Market and method
Comp set
A comp set is the group of similar nearby listings, matched on things like bedroom count, that a home is compared with for market occupancy, ADR and RevPAR.
Pacer's market indexes compare a home with homes of the same bedroom count in the same market. In Pacer's own reports, "comp" on its own means a complimentary stay with zero rent, never a comparable property.
Also called: Competitive set, Comps
Worked example Sample month
Invented market for the same month, same basis: adjusted occupancy 70.0%, ADR $250, adjusted RevPAR $175.00
The home: adjusted occupancy 88.0%, ADR $240.00, adjusted RevPAR $211.20
Read more: Comp sets: how to build one that is not lying to you
Related: Market Penetration Index (MPI), Average Rate Index (ARI), Revenue Generating Index (RGI)
MPI
Market penetration index (MPI) is a home's occupancy divided by its market's occupancy, times 100. A score of 100 means the home is at market, and above 100 means it fills more of its nights than the market does.
Use the same basis on both sides: adjusted with adjusted, plain with plain. Pacer calls this the occupancy index.
Also called: Occupancy index
Formula
MPI = (home occupancy / market occupancy) x 100
Worked example Sample month
(22/25 adjusted occupancy) / 70.0% market x 100 = 125.7
How to read it
Above 100 is better than the market at filling nights. Read it next to ARI, because a high MPI can come from a lower rate.
Related: Average Rate Index (ARI), Revenue Generating Index (RGI), Comp Set, Adjusted Occupancy
ARI
Average rate index (ARI) is a home's ADR divided by its market's ADR, times 100. A score of 100 means the home earns the market rate on the nights it sells, and above 100 means it earns more per sold night.
ARI looks only at rate. It says nothing about how many nights sold. Pacer calls this the rate index.
Also called: ADR index, Rate index
Formula
ARI = (home ADR / market ADR) x 100
Worked example Sample month
$240.00 ADR / $250 market ADR x 100 = 96.0
Related: Market Penetration Index (MPI), Revenue Generating Index (RGI), Average Daily Rate (ADR)
RGI
Revenue generating index (RGI) is a home's RevPAR divided by its market's RevPAR, times 100. It combines MPI and ARI, so 100 means the home earns market revenue per available night and above 100 means it earns more.
RGI is the one-number answer to whether a home is out-earning its market, and MPI and ARI show why. Pacer calls this the revenue index.
Also called: RevPAR index, Revenue index
Formula
RGI = (home RevPAR / market RevPAR) x 100 = MPI x ARI / 100
Worked example Sample month
$211.20 adjusted RevPAR / $175.00 market adjusted RevPAR x 100 = 120.7
Check: MPI x ARI / 100 = 120.7, using the unrounded MPI and ARI
Related: Market Penetration Index (MPI), Average Rate Index (ARI), Adjusted RevPAR, Comp Set
Same-store
Same-store comparison measures a period against the same period a year earlier using only homes that were in service for all of both periods. It strips out growth from added homes, so a change in RevPAR reflects performance, not portfolio size.
Pacer compares adjusted RevPAR same-store. A home is included only if it was in service for the whole period and for the whole same period a year earlier. Homes added, removed or paused in either period are left out.
Also called: Same-store RevPAR, Like-for-like
Formula
Same-store adj. RevPAR lift = (this period's adj. RevPAR / same period last year's adj. RevPAR) - 1, for the same homes
Worked example Sample month
The sample home was in service for all of both Junes, so it counts.
Adjusted RevPAR: this year $211.20. Last year, $4,680 / 25 nights available = $187.20 (invented for illustration).
$211.20 / $187.20 - 1 = +12.8%
A second home that opened in April this year would be left out of both years.
How to read it
Without same-store, a portfolio that added homes can look like it improved when it only grew.
Read more: Benchmarking your portfolio without fooling yourself
Related: Adjusted RevPAR, RevPAR, Same Time Last Year (STLY)
RM
Revenue management is the ongoing practice of setting rates, minimum stays, fees, promotions and channel mix to earn the most from every night available. A pricing tool sets nightly rates, and revenue management covers the full set of levers.
Pacer is the AI-enabled, embedded revenue management function for short-term rental operators, and works alongside the pricing tool an operator already uses.
Also called: RM, Yield management
Worked example Sample month
There is no single formula. Pacer measures results with same-store adjusted RevPAR.
Read more: What revenue management is, Your pricing tool is one layer. Revenue management is six.
Related: Adjusted RevPAR, Same-Store Comparison
Pacer's year-over-year RevPAR results compare only homes that were in service for the whole of both periods, using adjusted RevPAR. Figures in the sample month are illustrative and are not results.