Revenue potential is a metric we use on STR listings. We apply the ADR and Occupancy rate the property achieved to a full 365 days to fill in the blocked calendar days. We also factor in market seasonality, historical performance for that property, as well as the historical performance of comparable properties.
In the example below, you can see that the listing was available 246 days of the possible 365, generating $117,900 in revenue. By applying these conditions to a full 365 days, we’re able to calculate a revenue potential of $126,200.
This metric helps you understand how much a property could have earned if its calendar had been available year-round. When reviewing comps in the market, it’s useful for identifying opportunities to capture more bookings if competitor listings are only available part of the year.