Vacation Rental Glossary

Return On Investment (ROI)

Vacation rental metrics or key performance indicators are critical measurable aspects of your business that you can lean on to understand and manage your business better. From occupancy rates to referrals your vacation rental is getting, it can be helpful to track these metrics. “You can’t improve what you don’t measure!”

If you understand the business metrics, you and/or the vacation rentals’ manager will be able to analyze the return on your investment and return on revenue more accurately to improve your operations.

It is used to evaluate the efficiency of an investment by dividing the profit from the vacation rentals by the cost of the property.

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