Kasavana and Brooks (1998) say that ARR is used to determine realization factors that should equal room revenue divided by room occupied, not by room sold. But ARR is used to find out the average price of each room sold per day only (Hospitality Yield Management, 2013). ARR which stands for Average Room Rate or also known as ADR Average Daily Rate. Kasavana and Brooks (1998) state that today revenue managers calculate this based on an individual guest in groups and convections, from weekdays to holidays.