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The Net ADR Yield calculator computes the Net Average Daily Rate Yield for a room in a hotel or similar establishment.
INSTRUCTION: Choose units and enter the following:
- (RR) This is the Room Rate
- (RGF) This is the total amount of fees paid to generate the reservation.
- (RRP) This is the actual rate paid by the customer for the room(s).
Net ADR Yield (NY): The calculator returns the Net ADR Yield as a percentage. However, this can be automatically converted to a decimal via the pull-down menu.
The Math / Science
The formula for Net ADR Yield is:
NY = (RR - RGF)/RRP
where:
- NY is the net ADR Yield
- RR is the room rate
- RGF is the room sale generation fee
- RRP is the room rate paid
Net ADR Yield is the portion of ADR realized by a hotel after subtracting the cost fees and assessments associated with channels that produced the room sale. These fees often come from:
- Travel Sites on the Internet
- Booking Systems
- Reservation System
Working Example
A Room at a hotel has a rate of $96.60 per night. The internet reservation service charges the hotel $5 for every booking, and the guest's actual price was $96.60. The Net ADR Yield will be as follows:
Net ADR Yield = $96.60-$5.00$96.60 = 0.94818 or 94.81%
Related Calculators:
Resource:
- Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
- "Definition of Net." Alanpedia.com. N.p., n.d. Web. 07 Aug. 2015.
