Glossary
Metrics
45 termsA
Ancillary RevenueAdditional income earned from upsells, add-on services, and experiences beyond the base accommodation charge.Average Booking ValueAverage booking value is the mean total revenue generated per confirmed reservation, including accommodation fees, cleaning fees, and any additional charges.Average Daily Rate (ADR)The average revenue earned per occupied rental night over a given period.
B
Booking PaceThe rate at which reservations are being made for future dates compared to the same period in prior years.Booking SourceThe channel or platform where a reservation originates, used for attribution tracking and marketing analysis.Booking WindowThe amount of time between when a reservation is made and the actual check-in date.Break-Even OccupancyThe minimum occupancy rate a vacation rental must achieve to cover all operating costs without generating a loss.
C
Cap RateA real estate metric that measures the annual return on an investment property based on its net operating income.Capital Expenditure (CapEx)Capital expenditure is money spent on major improvements or long-lived assets, such as a roof or HVAC system, rather than routine operating costs.Cash FlowThe net amount of money moving into and out of a vacation rental business over a specific period, reflecting its financial health and liquidity.Cash-on-Cash ReturnCash-on-cash return measures annual rental income as a percentage of the cash invested in a property, used to evaluate short-term rental investment performance.Commission RateThe percentage of rental revenue charged by a property management company or booking platform as compensation for their services.Comp SetA group of comparable vacation rental properties used for benchmarking performance and pricing.Conversion RateThe percentage of listing views or booking inquiries that result in confirmed reservations.Customer Acquisition CostThe total cost of marketing, commissions, and operational effort required to secure a new guest booking.
D
DepreciationA tax deduction that accounts for the gradual wear, deterioration, and aging of a rental property over its useful life.Direct Booking ShareDirect booking share is the percentage of a manager's total bookings or revenue that comes through their own direct-booking website rather than through OTAs.
G
GOPPARGOPPAR (Gross Operating Profit Per Available Room) measures a vacation rental's profitability by dividing gross operating profit by the total nights available in a period.Gross Booking Value (GBV)The total monetary value of all bookings before any deductions for commissions, fees, or expenses are applied.Gross Rental IncomeThe total revenue generated from a vacation rental property before subtracting any operating expenses, management fees, or taxes.Gross YieldGross yield is the annual gross rental income of a property divided by its value or purchase price, expressed as a percentage before expenses.Guest FeeA guest fee (or guest service fee) is a charge added to a guest's booking total by an OTA platform on top of the nightly rate set by the host.Guest Lifetime Value (LTV)The total revenue a property manager can expect from a single guest across all their bookings over time.Guest SatisfactionA systematic measure of how well a vacation rental experience meets or exceeds guest expectations, often tracked via surveys or reviews.
H
L
M
Management FeeThe percentage or flat fee charged by a property management company to an owner for managing their vacation rental.Market Penetration Index (MPI)A benchmark that compares your property's occupancy to your competitive set's occupancy, expressed as an index where 100 means you match the market.
N
Net Promoter Score (NPS)Net Promoter Score (NPS) is a guest loyalty metric that measures how likely guests are to recommend a vacation rental property or management company.Net RevenueThe revenue a property manager retains after subtracting OTA commissions, payment processing fees, and platform costs.Nightly RateThe price charged per night for a vacation rental stay.NOI (Net Operating Income)Total rental revenue minus all operating expenses, before debt service and income taxes.
O
Occupancy RateThe percentage of available rental nights that are booked over a given period.Operating ExpensesThe recurring costs required to manage and maintain a vacation rental property, including cleaning, maintenance, utilities, insurance, and management fees.Owner ChurnOwner churn is the rate at which a property management company loses homeowner clients from its portfolio over a given period.
R
Response RateThe percentage of guest inquiries a host replies to within a specified timeframe, typically 24 hours.Response TimeHow quickly a host or manager replies to guest inquiries and messages, a factor in guest satisfaction and search ranking on booking platforms.Return on Investment (ROI)Return on investment (ROI) is a financial metric measuring the profitability of a vacation rental property relative to its total investment cost.RevPAN (Revenue Per Available Night)A vacation rental performance metric measuring total revenue generated per available rental night.RevPAR (Revenue Per Available Room)A metric that measures revenue generated per available rental night, combining occupancy and rate performance.
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