What is the definition of Average Bed Rate (ABR) in the hotel industry?
ABR abbreviates for: Average Bed Rate
The “Average Bed Rate” is the total amount paid for beds, separated by the total number of beds sold. This ratio allows revenue manager to compute more than just the “Average Room Rate” or ARR.
With this approaching, the focus can be put on maximizing the income per bed rather than only by room. Especially with hostels, where beds are sold independently and rooms are frequently shared, this ratio permits more precise and appropriate insight. By knowing hotels ABR, revenue managers can recognize the different aspect that pressure the ABR and after that find ways to amplify the average rate.
How to calculate the ABR?
Formula: Average Bed Rate = total amount paid for beds / number of beds sold