What is “Rate” column in your pickup reports, and how is it different from the “ADR” column?
Pickup report is rightfully called “the most often-used report type in Blent”.
The report shows a set of the most important metrics and visual indicators that allow us to observe their progression over time.
One of the most frequently asked questions is “What is the difference between the ADR column and the Rate column?”.
Technically speaking, ADR in Blent is a sum of the NET revenue coming from transactions that are associated with the transaction codes attributed to the Accommodation department in Blent Settings, then divided by the number of room-nights sold (not occupied!). You can choose to manually exclude some transaction codes from that calculation, please address support@blent.io for more details.
And then Rate is a sum of the GROSS room rates at which each room-night was booked, divided by the number of room-nights sold.
The most evident difference between those metrics is that the Rate is calculated from Gross revenue, and ADR - from the Net one. With ADR being a more supplier-centric metric, Rate is calculated from the revenue incl. tax to highlight the demand side, as the customers face prices that already include tax.
Even when comparing net versus net amounts, room rate revenue is rarely equal to the accommodation revenue coming from transactions.
This way, you can observe the difference between what average price tag your customer agreed to when booking, versus what average spend ended up “in your pocket”. This allows you to explore customer’s willingness to pay from two different angles – at the “pre-arrival” and “consumption” phases.
This link will direct you to the main article dedicated to Pickup in general. You will find detailed guidelines on how to create, adjust, and use the pickup reports properly. With the right approach, this can become the most powerful tool in your Blent account.