Average Daily Revenue
Average Daily Revenue Calculations
For members of 20 groups, average daily revenue is used as a reporting metric. The basic calculation of this is as follows-
Total period revenue for all vehicles in a particular type (full size/mini) divided by the number of days for that month= Average daily revenue
There are some complications with calculating this in TBN and this article will provide you with the way to accomplish it. The primary complication for this style of reporting is with how TBN creates add-on revenue. In other systems, add-on revenue is just a function of an extension of vehicle revenue for a single vehicle. In TBN Add-ons are associated with routes, and not vehicles which means that there are times where the revenue will not be a 1-to-1 match with a particular vehicle. For example, you may have a driver gratuity which is calculated across the vehicle totals on the booking that have multiple routes and vehicle types as part of that booking. The following procedure will allow you to calculate your ADR.
Pre-Requisites to getting started-
- Understand if your company books revenue by "trip departure date" or "trip return date". This will be required to know which filters to use in the next steps.
- Understand which vehicles fit into which categories for this reporting process (ie; which vehicles are full size and which are mini)
- Determine if there are add-on types you do not want calculated in your ADR revenue. (example: some companies don't include credit card surcharges or prepaid driver gratuities in the calculation)
Steps to Generating ADR Report-
- Navigate to the "General Ledger Code- Revenue Entries report” under the accounting tab in reports.
- Select the date range that you are trying to calculate for based on when you book revenue (either departure date or return date) and click apply filters.
- Click the Button “group by vehicle/add on types”
- Choose the "Vehicle" radio button and click apply filters. This will show you only vehicle totals during your selected period.
- Add up the vehicle totals that you want included in your “full size” vehicle revenue. (this calculates the "period full size vehicle revenue")
- Add up the vehicle totals that you want included in the “mini bus” vehicle revenue. (this calculates the "period mini vehicle revenue")
- Add the total of both together and calculate the percentage of revenue each represents from the monthly total. So for example if you had 1M in total revenue and 700K of that was full size revenue, you would divide 700K by 1M to get .7 or 70% of the vehicle revenue allocated to full size vehicles. (this calculates the "full size and mini allocation percentage")
- Next, do the same for small vehicles or simply use the remaining 30% in this case as it would be the other vehicle type.
- Now, Click the Addon radio button and click apply filters. This will show you only add-on revenue during your selected period.
- Next, total all the add on revenue you want to include in this report, excluding any add-ons that you want to not include in your final ADR. (this calculates the "total period add-on revenue")
- Once you have that total you would use the calculated percentages from the above equation to allocate the add-on revenue. This assumes that things are mostly even in terms of add ons being distributed by vehicle categories. If you feel they are not, for example if you rarely use add-on revenue when using mini buses, you could manipulate the percentage of add-on revenue you will allocate by changing the percentage you use. For example, Vehicle revenue may be split 70/30 but you could use 90/10 to allocate add-on revenue if you rarely use add-ons with smaller vehicles. (This calculates T"otal full size" and "total mini revenue)
- Once you have the add-on revenue allocated and added to the vehicle totals for that same period, you can simply divide that by the service days included to calculate your ADR
ADR Calculation Summary
- Total period full size vehicle revenue (+) (Total period add-on revenue (x) full size allocation percentage) (=) Total Full Size Revenue
- Total period Mini vehicle revenue (+) (Total period add-on revenue (x) mini allocation percentage) (=) Total Mini Revenue
- Total Full Size Revenue (/) Service Days (=) Full Size ADR
- Total Mini Revenue (/) Service Days (=) Mini ADR
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