It’s $506. Let’s dig deeper, though. What is ADR, how is it calculated, and how can you make it work for you?
What is ADR?
Average Daily Rate (usually referred to as ADR) is a simple but critical measure when it comes to VRBO. What is it? It is the average of the daily price of any listing on VRBO! The “average” can span anywhere from a 1 week average all the way to an annual average; however, it is most commonly referred to as being a 365 day (annual) value. This means you may hear about weekly ADR, monthly ADR, or annual ADR. Because it is a measure of daily price, it is a value that must be split up during a larger time frame than day by day.
Why is ADR Important?
Without a measure of average pricing in your area, there would be no chance of creating accurate rates for your VRBO listing. Take gas for example. What would happen if one gas station was $2 per gallon, and the one right next to it was $1 per gallon? The first station would be out of business almost instantly. The same is true for your listing! Pricing can be competitive in the VRBO/Vacation Rental space.
ADR is also important as it helps us track market trends such as growth, supply and demand, etc. If the ADR continually increases in a particular area, then it can be assumed that market is doing well. The opposite is true for declining ADRs.
What is Vail’s ADR?
Now that you know how ADR works, let’s dive into the Average Daily Rate for VRBO in Vail. According to airdna.co, the ADR calculated annually from all 2,240 active rentals in Vail is $506! Now, this sounds a bit high but Vail’s strong tourist economy provides a Daily Rate that is nearly unmatched anywhere else. Additionally, keep in mind this is for all listings meaning anything from a 1 bedroom studio to a 7 bedroom estate.
You may have noticed that the ADR of Vail was not just pulled out of thin air. There are tools that provide these critical numbers without making you guess! There are also nearly unlimited variables that can be used to generate these projections, and the more variables used the more accurate your ADR will be.
One of our favorites for VRBO stats is Airdna (airdna.co). The platform not only includes HomeAway (VRBO) but Airbnb info as well! This provides more accurate insights on the market as VRBO and Airbnb are the top 2 current OTA (Online Travel Agency) providers. Many platforms also have integrated tools to help price your listing accordingly. For instance, HomeAway provides stats from your direct competitors so that you can play around with
Is ADR not enough for you? Reach out to us by selecting the “Get Started” button on our homepage under research!