Average Daily Rate (ADR) by Price Tier breaks down average daily rates based on a property’s pricing tier. We assign price tiers in 20% increments, based on the bedroom count and average daily rate of the property in the market.
Luxury: Properties in the top 20% of average daily rates for their market and bedroom count.
Upscale: Properties in the 60th–80th percentile of average daily rates for their market and bedroom count.
Midscale: Properties in the 40th–60th percentile of average daily rates for their market and bedroom count.
Economy: Properties in the 20th–40th percentile of average daily rates for their market and bedroom count.
Budget: Properties in the bottom 20% of average daily rates for their market and bedroom count.
Looking at ADR through the lens of price tiers helps you decide exactly what caliber of host you want to be:
The Luxury Premium: You can see exactly how much more guests are willing to pay for a high-end experience. If luxury properties command a massive premium that’s growing over time, it might be the signal you need to invest in high-end amenities, like a home theater or hot tub, to jump from "Midscale" to "Upscale."
Market Resilience: Tracking these tiers over several years reveals which segments are the most stable. Sometimes the "Luxury" tier holds its rates better during a downturn, while "Economy" might see more dramatic swings.
Smart Benchmarking: Instead of comparing your property to the entire city, you can benchmark yourself against your actual peers. If you’re priced as "Upscale" but your amenities are "Midscale," this chart can help you diagnose why your occupancy might be struggling.
Note: Revenue figures include cleaning fees and any host discounts applied. OTA service fees are excluded.
Let’s take a look at this chart from Orlando, Florida, where we see the gap between "standard" and "luxury" isn't just a step, it's a leap:
The Luxury Leader: The Luxury tier (pink) is the undisputed heavyweight, with ADRs frequently exceeding $450 a night during the high season. This tier sees the most dramatic seasonal price spikes, particularly in March.
The Tight Middle Pack: Notice how closely the Budget, Economy, Midscale, and Upscale lines move together, generally staying between $150 and $300. This suggests a highly competitive middle market where small price adjustments or a few extra amenities can easily move you from one tier to the next.
Reliable Seasonality: Every single tier follows the exact same heartbeat. No matter your price point, you can set your watch to Orlando's seasonal rhythm.
ADR Pro Tip:
To maximize your revenue, use our filters to see the ADR of the next pricing tier for your specific bedroom count. If you own a 4-bedroom home currently priced in the "Midscale" tier, but the "Luxury" 4-bedrooms are earning $200 more per night, it might be time to look at what amenities they have that you don’t. Sometimes, a relatively small investment in decor or a game room can move you into a much higher earning bracket.