![]() ![]() ARPARĬalculation: (ADR – variable costs per occupied room + additional revenue per occupied room) x OccupancyĪRPAR is adjusted revenue per available room. While TrevPAR is a great measurement for accountants, hotel owners, and general managers seeking a high-level view of profitability, it’s less beneficial for revenue managers because it doesn’t enable them to isolate revenue streams. But, like RevPAR, TrevPAR fails to account for cost factors and occupancy rate. TrevPAR takes into account total revenue of the property across all outlets, like the spa, the pool, and restaurants. TrevPAR stands for the total revenue per available room. TrevPAR Calculation: Total Revenue / Total Number of Rooms As a result, alternative metrics have emerged to help hotels measure performance in terms of growth, profits, and revenue. While RevPAR’s industry popularity makes it easy to compare revenue figures across properties and brands, RevPAR misses the mark for hoteliers looking at profit, not just revenue. RevPAR also doesn’t account for any additional income the hotel generates from other departments such as catering, parking, or the spa. Because of this, it can’t be used as a key metric in measuring profitability - arguably the number one goal of most hotels. The Problem with RevPARĪs helpful as RevPAR can be in calculating revenue, there are several pitfalls to this key metric.įor one, RevPAR doesn’t take into account CPOR (costs per occupied room). In this post, we will discuss the formulas you can use to calculate RevPAR, the alternative KPIs, and offer strategies for increasing RevPAR - or GoPAR or ARPAR or whichever metric you prefer. Still, no matter which metric is used, the goal stays the same: To increase revenue and profits. However, there are alternatives to RevPAR that can help hoteliers better measure both profitability and growth by taking into account several other factors - namely costs and occupancy rates. But as useful as it is to illustrate growth, RevPAR doesn’t account for profit - and while growth and profit sometimes go hand in hand, this is not always the case. RevPAR is important because it helps hoteliers measure the overall success of their hotel. This worksheet also includes calculations for ADR, ARR, and Occupancy Rate! Download your RevPAR worksheet We know organizing data and calculating formulas is the last thing anyone wants to do, which is why we’ve created a free worksheet to streamline the process. There are two formulas you can use to calculate RevPAR: How to Calculate RevPAR? (RevPAR formula) If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. Since it’s such a widely used metric, RevPAR can help hotels measure themselves against other properties or brands. RevPAR helps hotels measure their revenue generating performance to accurately price rooms. ![]() RevPAR represents the revenue generated per available room, whether or not they are occupied. This page provides a full rundown of RevPAR from its meaning and formula to tips on how to improve it. RevPAR is a key performance indicator (KPI) that many hoteliers consider the most important of all is RevPAR (Revenue Per Available Room). ![]()
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