What is Average Daily Rate?
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:
(Total revenue) / (Total confirmed linear feet sold)
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.
Related Marina Metrics
Revenue Per Linear Foot
Downloadable marinas.com worksheet on calculating marina metrics.