Net ADR

Definition

ADR after channel costs — commission, transaction and payment fees, loyalty or marketing charges — are deducted. A €120 OTA booking at 18% commission nets €98.40; a €110 direct booking with €3 of payment and booking-engine costs nets €107.

What it tells you

Gross ADR flatters expensive channels. Net ADR shows that the “higher-rated” OTA booking above is actually worth about €9 less than the cheaper direct one — the arithmetic behind channel-mix targets, and behind how deep a direct-booking incentive can go before it stops paying.

How to track it

Deduct each channel’s true costs from room revenue and average per channel, monthly. Commission rates live in OTA extranets and invoices; the discipline is keeping the cost assumptions per channel current instead of using one blanket percentage.

Where it fits

The profitability lens on distribution. Paired with CAC (what a booking costs to win), net ADR (what it’s worth once won) completes the economics of every channel decision. For the full lesson, see Distribution costs and net ADR in the free Academy.