An ADR index can be compared with which of the following?

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The Average Daily Rate (ADR) index is a key performance metric in the hospitality industry that measures the average revenue earned for each occupied room. It serves as a benchmark for hotel performance, providing insight into how a hotel is performing in relation to its own set goals.

Comparing the ADR index with the hotel's ADR goals allows management to assess whether the hotel's pricing strategies are effective and if they are meeting their revenue targets. This comparison can guide operational decisions, pricing strategies, and revenue management initiatives to enhance financial performance. For example, if the ADR index is above the hotel's goals, it may signal successful pricing strategies, while a below-goal performance could indicate areas needing improvement.

The other options, while related to hotel operations and performance, do not provide a relevant comparison for the ADR index. Room service costs pertain to service efficiency rather than room pricing. Industry profit margins are too broad and not directly comparable to a specific hotel’s ADR goals. Similarly, occupancy rates speak to volume and not the revenue per room aspect that ADR measures. Therefore, the most meaningful comparison for understanding a hotel's performance in relation to its goals is with the hotel’s ADR goals.

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