ADR calculation


Userlevel 5
Badge +5

Hi all! 

Hope you are all doing great :D 

I would love to understand more about what you are thinking of ADR calculation within Mews. 

  • Are you using Mews to calculate your ADR? If no, how are you? 
  • Where do you extract your numbers from? 
  • Is this how you expect the ADR to be calculated?

STR documentation: 

https://str.com/historical-benchmarking-guidelines

 

Hoping to hear from you! 

 

Warmest,

Nienke


11 replies

Userlevel 2

Hi Nienke,

 

We have struggled with relying on the Mews ADR as some times we have to use the OOO function for a maintenance issue we don’t think will be resolved that day and our occupancy will than be overstated as it deducts the room from our available rooms. I believe the “Out of Service” function is a work around but if I’m not mistaken it doesn’t close the room from being booked on channels so we’re at risk of overselling. Probably more of an internal process issue but happy to hear your thoughts on if there’s any alternative solutions?

Userlevel 6
Badge +3

Hi Nienke,

 

Thank you for bringing up this topic.

 

We use the data from Mews, although we’re calculating the ADR by ourselves as the one in Mews seems to be off sometimes.

 

We’re using the current formula to calculate the ADR.

ADR = Room Revenue / all sold rooms (day-use and no-shows excluded)

With Room Revenue consisting of the following:

  • Room Rate (room only)
  • Any products that have been placed under Room Revenue as an accounting category (ie. Upgrades, extra occupancy fees...)

 

In order to correctly calculate the Room Revenue, I use the following reports;

  • Manager Report
  • Accounting Report
  • Product Report

 

Kind regards,

Matthias

Userlevel 5
Badge +5

Hi Nienke,

 

We have struggled with relying on the Mews ADR as some times we have to use the OOO function for a maintenance issue we don’t think will be resolved that day and our occupancy will than be overstated as it deducts the room from our available rooms. I believe the “Out of Service” function is a work around but if I’m not mistaken it doesn’t close the room from being booked on channels so we’re at risk of overselling. Probably more of an internal process issue but happy to hear your thoughts on if there’s any alternative solutions?

 

Hi @jrturner91 ,

 

Thank you for your reply! 

It is indeed correct what you are saying above. 


Out-of-Service (OOS)

An OOS can be created by clicking on the space number in the Timeline or the Space status report.

 

An OOS is intended to block a room from an immediate assignment for a minor repair or similar actions.

 

These rooms are kept in the sold inventory:

  • They are sent to the distribution channels

They are still part of the revenue calculation:

  • It does not affect RevPar as the room is not blocked.

Since the space is supposed to be sold, it does not affect Occupancy nor ADR.

 

Out of Order (OOO)

An OOO can be created by clicking on the space number in the Timeline or the Space status report

 

An OOO is intended to block a room from being sold for a prolonged period of time. It is usually used for major repair or similar actions.

 

These rooms are not kept in the sold inventory meaning:

  • They are not sent to the various distribution channels

They are still part of the revenue calculation:

  • They do affect RevPar as you are reducing the number of available rooms in your hotel.

The space affects the Occupancy since it ultimately reduces the availability of rooms to be sold.

Source: https://help.mews.com/s/article/what-are-house-use-out-of-service-and-out-of-order-features?language=en_US


 

If I understand correctly, you would you argue that OOO should be included in the ADR calculation? Is that correct? 

 

Warmest regards,

 

Userlevel 5
Badge +5

Hi Nienke,

 

Thank you for bringing up this topic.

 

We use the data from Mews, although we’re calculating the ADR by ourselves as the one in Mews seems to be off sometimes.

 

We’re using the current formula to calculate the ADR.

ADR = Room Revenue / all sold rooms (day-use and no-shows excluded)

With Room Revenue consisting of the following:

  • Room Rate (room only)
  • Any products that have been placed under Room Revenue as an accounting category (ie. Upgrades, extra occupancy fees...)

 

In order to correctly calculate the Room Revenue, I use the following reports;

  • Manager Report
  • Accounting Report
  • Product Report

 

Kind regards,

Matthias

Hi @MatthiasH ,

 

Long time no speak ;) Hope you’re well! Thank you for your reply. 

A couple of follow up questions on this:

  • All sold rooms:
    • Are you calculating this as well manually? 
    • Why are you excluding the Day-use rooms? Is there a specific reason for that due to difficulty calculating or any other reason? 
  • Room revenue:
    • We are thinking of working with accounting categories to calculate the room revenue. However, we foresee various properties to have difficulty with this due to using accounting categories in a different way. 
    • Another way of thinking would be indicating the room revenue on Product level. Would you have any thoughts on that? 
  • Reporting:
    • Where would you like to have an insight in your ADR? Which report? 

 

Sorry for the many questions, but I am very interested in your point of view on the topic. 

Looking forward to hearing!

 

Warmest, 

Nienke

 

Userlevel 6
Badge +3

Hi Nienke,

 

Thank you for bringing up this topic.

 

We use the data from Mews, although we’re calculating the ADR by ourselves as the one in Mews seems to be off sometimes.

 

We’re using the current formula to calculate the ADR.

ADR = Room Revenue / all sold rooms (day-use and no-shows excluded)

With Room Revenue consisting of the following:

  • Room Rate (room only)
  • Any products that have been placed under Room Revenue as an accounting category (ie. Upgrades, extra occupancy fees...)

 

In order to correctly calculate the Room Revenue, I use the following reports;

  • Manager Report
  • Accounting Report
  • Product Report

 

Kind regards,

Matthias

Hi @MatthiasH ,

 

Long time no speak ;) Hope you’re well! Thank you for your reply. 

A couple of follow up questions on this:

  • All sold rooms:
    • Are you calculating this as well manually? 
    • Why are you excluding the Day-use rooms? Is there a specific reason for that due to difficulty calculating or any other reason? 
  • Room revenue:
    • We are thinking of working with accounting categories to calculate the room revenue. However, we foresee various properties to have difficulty with this due to using accounting categories in a different way. 
    • Another way of thinking would be indicating the room revenue on Product level. Would you have any thoughts on that? 
  • Reporting:
    • Where would you like to have an insight in your ADR? Which report? 

 

Sorry for the many questions, but I am very interested in your point of view on the topic. 

Looking forward to hearing!

 

Warmest, 

Nienke

 

Hi Nienke,

 

Indeed a long time :-p

  • All sold rooms:
    • Are you calculating this as well manually? → These we take from the occupancy report in Mews; however, if we have day-use rooms (although rare in our city) we deduct them.
    • Why are you excluding the Day-use rooms? Is there a specific reason for that due to difficulty calculating or any other reason? → Day-use is deducted from the occupancy as the max occupany for us is 100%. If you have a day-use and you resell the room in the evening, the max occupancy is still 100% as 100% is “not possible” in a hotel (you can only sell the number of rooms you have). A room which is not occupied during the night is considered not sold. The revenue though is added to the room revenue for that day.
  • Room revenue:
    • We are thinking of working with accounting categories to calculate the room revenue. However, we foresee various properties to have difficulty with this due to using accounting categories in a different way. -→ The Manager Report already makes it possible to easily extract all revenue per Accounting categorie, this makes it easier to calculate things manually. Maybe both options can be provided to hotels so they can select themselves how they want the calculation be done?
    • Another way of thinking would be indicating the room revenue on Product level. Would you have any thoughts on that? → Not really sure how this would work. Do you have an example?
  • Reporting:
    • Where would you like to have an insight in your ADR? Which report? → I think this should be on both the manager report and the Manager Analytics in mews.
Userlevel 2

Hi Nienke,

 

Thanks for the confirmation, our issue is just process related when it comes to skewing our RevPAR by inflating our occupancy when rooms are being placed OOO instead of OOS. 

Userlevel 6
Badge +3

Hi Nienke,

 

Thanks for the confirmation, our issue is just process related when it comes to skewing our RevPAR by inflating our occupancy when rooms are being placed OOO instead of OOS. 

Hi Jeff,

We have the exact same issues with the RevPar calculation. It may be worth to also mention it here. It's against ainy industry rule. Not sure where Mews got this information... 

Userlevel 5
Badge +5

Hi Nienke,

 

Thank you for bringing up this topic.

 

We use the data from Mews, although we’re calculating the ADR by ourselves as the one in Mews seems to be off sometimes.

 

We’re using the current formula to calculate the ADR.

ADR = Room Revenue / all sold rooms (day-use and no-shows excluded)

With Room Revenue consisting of the following:

  • Room Rate (room only)
  • Any products that have been placed under Room Revenue as an accounting category (ie. Upgrades, extra occupancy fees...)

 

In order to correctly calculate the Room Revenue, I use the following reports;

  • Manager Report
  • Accounting Report
  • Product Report

 

Kind regards,

Matthias

Hi @MatthiasH ,

 

Long time no speak ;) Hope you’re well! Thank you for your reply. 

A couple of follow up questions on this:

  • All sold rooms:
    • Are you calculating this as well manually? 
    • Why are you excluding the Day-use rooms? Is there a specific reason for that due to difficulty calculating or any other reason? 
  • Room revenue:
    • We are thinking of working with accounting categories to calculate the room revenue. However, we foresee various properties to have difficulty with this due to using accounting categories in a different way. 
    • Another way of thinking would be indicating the room revenue on Product level. Would you have any thoughts on that? 
  • Reporting:
    • Where would you like to have an insight in your ADR? Which report? 

 

Sorry for the many questions, but I am very interested in your point of view on the topic. 

Looking forward to hearing!

 

Warmest, 

Nienke

 

Hi Nienke,

 

Indeed a long time :-p

  • All sold rooms:
    • Are you calculating this as well manually? → These we take from the occupancy report in Mews; however, if we have day-use rooms (although rare in our city) we deduct them.
    • Why are you excluding the Day-use rooms? Is there a specific reason for that due to difficulty calculating or any other reason? → Day-use is deducted from the occupancy as the max occupany for us is 100%. If you have a day-use and you resell the room in the evening, the max occupancy is still 100% as 100% is “not possible” in a hotel (you can only sell the number of rooms you have). A room which is not occupied during the night is considered not sold. The revenue though is added to the room revenue for that day.
  • Room revenue:
    • We are thinking of working with accounting categories to calculate the room revenue. However, we foresee various properties to have difficulty with this due to using accounting categories in a different way. -→ The Manager Report already makes it possible to easily extract all revenue per Accounting categorie, this makes it easier to calculate things manually. Maybe both options can be provided to hotels so they can select themselves how they want the calculation be done?
    • Another way of thinking would be indicating the room revenue on Product level. Would you have any thoughts on that? → Not really sure how this would work. Do you have an example?
  • Reporting:
    • Where would you like to have an insight in your ADR? Which report? → I think this should be on both the manager report and the Manager Analytics in mews.

Hi @MatthiasH ,

Thank you for this! We will look further into the topic, but this is extremely value information to us :D 

Warmest regards, 

Nienke 

Userlevel 5
Badge +5

Hi Nienke,

 

Thanks for the confirmation, our issue is just process related when it comes to skewing our RevPAR by inflating our occupancy when rooms are being placed OOO instead of OOS. 

Hi @jrturner91 ,

Please allow me to discuss this topic further internally. We have another team dedicated to this topic, and I will share this information.

You are using the Manager Report in Mews to get to the data to calculate the RevPar? 

Warmest regards, 

Nienke

Userlevel 2

Thanks, @Nienke Wilbrink . That’s correct, we’re using the manager report. 

Userlevel 6
Badge +6

Hi @Nienke Wilbrink

Our business calculates differently to the way Mews calculates, as such we have integrated Intouch Data into Mews via marketplace and built our own reports that calculate as per our business requirements. 

Here are two feature requests that would allow YHA Australia to utilise the statistics that Mews produces. 

In short, we calculate ADR by Revenue/customers

https://feedback.mews.com/forums/932128-mews-business-intelligence/suggestions/44808442-adding-customer-metric-to-mews-analytics-reports

https://feedback.mews.com/forums/918232-mews-operations-pms/suggestions/44543727-have-a-filter-on-reporting-to-include-or-exclude-o

Reply