STR Industry Terminology — Complete Reference
ADR — Average Daily Rate
Definition: The average nightly price you charge across all occupied nights in a given period.
Formula: Total Room Revenue ÷ Total Nights Occupied = ADR
Example: If your Lahore apartment earns PKR 480,000 over 80 occupied nights in a month, your ADR is PKR 6,000.
Why it matters: ADR tells you your average pricing power. Tracking it monthly shows whether your pricing strategy is improving or stagnating relative to the market.
Pakistani context: ADR in major Pakistani cities (2025–2026) ranges from PKR 3,500–5,000 (budget 1BR) to PKR 12,000–25,000+ (premium villas).
RevPAR — Revenue Per Available Room
Definition: Revenue earned per night the property was available (whether occupied or not). This is a more complete performance measure than ADR alone.
Formula: ADR × Occupancy Rate = RevPAR — OR — Total Revenue ÷ Total Available Nights
Example: ADR of PKR 6,000 at 70% occupancy = RevPAR of PKR 4,200
Why it matters: Two properties with the same ADR can have very different RevPAR. A property charging PKR 8,000/night at 45% occupancy (RevPAR: PKR 3,600) underperforms one charging PKR 6,000 at 70% (RevPAR: PKR 4,200). Always optimise for RevPAR, not just ADR.
Occupancy Rate
Definition: The percentage of available nights that were actually occupied by paying guests.
Formula: Occupied Nights ÷ Available Nights × 100
What a good number looks like:
- Below 50%: Concerning — likely pricing, marketing, or listing quality issue
- 50–65%: Average performance for Pakistani STR market
- 65–80%: Strong performance — well-optimised listing
- 80%+: Excellent — you may be underpricing; consider raising rates
OTA — Online Travel Agency
Definition: Digital platforms that connect guests with accommodation providers. OTAs take a commission (typically 15–25%) on each booking they facilitate.
Major OTAs for Pakistani hosts:
- BookKaaro — Pakistan-focused, growing rapidly, lower commission, local payment
- Airbnb — Global reach, strong brand for international and diaspora guests
- Booking.com — Large European and corporate travel segment
- Agoda — Strong in Asian travel segments
Why it matters: Your OTA selection determines your guest profile. Multi-OTA listing maximises reach but requires a channel manager to prevent double bookings.
PMS — Property Management System
Definition: Software that centralises the management of one or more rental properties — bookings, calendars, guest communications, pricing, and financial reporting in one platform.
Examples: Guesty, Hostaway, Lodgify, Cloudbeds
Why it matters: A PMS becomes essential when managing 3+ properties. Without one, you're manually managing calendars, messages, and reports across multiple platforms — a recipe for errors, double bookings, and burnout.
Pakistani accessibility: Most PMS tools are cloud-based and accessible from Pakistan via international payment. Costs range from USD 30–150/month depending on number of properties.
Dynamic Pricing
Definition: An automated or semi-automated pricing strategy that adjusts your nightly rate in real-time based on demand signals, local events, competitor pricing, days-out-to-arrival, and seasonal factors.
How algorithms set your rate: Dynamic pricing tools (PriceLabs, Wheelhouse) analyse thousands of data points — including how many bookings are being made in your area, upcoming events, your own occupancy rate, and competitor availability — to suggest or automatically set the optimal nightly rate each day.
Pakistani impact: Hosts using dynamic pricing tools consistently earn 20–35% more annual revenue than those using static rates in Pakistani markets.
Co-Host
Definition: A person who manages a short-term rental property on behalf of its owner, typically earning 15–30% of gross booking revenue as commission for their management services.
Role and scope: Co-hosts handle all or most operational aspects of STR management — listings, guest communication, check-ins, cleaning coordination, pricing, and owner reporting. The property owner retains ownership and receives the majority of revenue.
Legal standing in Pakistan: Co-hosting is an informal service relationship governed by a private agreement between owner and co-host. There is no specific statutory framework for co-hosting in Pakistani law — your written agreement is your legal protection.