DRAG
the consortium

KPI #2: Why Your Average Daily Rate (ADR) is Lying to You

You bagged the “cheapest” rate, popped the champagne… and three months later your budget is still bleeding. Why?

Because ADR isn’t the full story. In 2025, chasing the lowest rate is like buying a designer handbag and then finding out the strap costs extra.

Why it matters

A narrow focus on ADR leads to:

  • False savings in your reports
  • Traveller dissatisfaction (“Why am I paying for Wi-Fi at a 4-star?”)
  • Booking leakage when travellers go off-platform for better value
  • Weakened procurement credibility with stakeholders


Who benefits when you shift focus

  • Travel Buyers: Real cost control and accurate forecasting
  • Suppliers: Ability to offer smarter, bundled pricing
  • TMCs: Fewer escalations and leakage headaches
  • Travellers: No nickel-and-diming — just value that feels fair
The Consortium POV
We believe in value-per-stay, not price-per-night.
That means helping procurement teams stop rate-hunting and start negotiating outcomes — like bundled inclusions, cancellation flexibility, and service value that boosts overall program performance.
When hotels are measured on net value delivered, firefighting stops and optimisation starts.

Takeaway
Let’s redefine what performance looks like. ADR is a number; value-per-stay is a strategy.

Are you ready to have that conversation?

Book a Partnership Pulse Check

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