What’s the difference between RevPAR and TrevPAR? The two may sound alike, but they have one important difference. RevPAR only looks at revenue generated from room bookings. TrevPAR, on the other hand, looks at revenue earned from every corner of your property. How to calculate your ho...
Still, no matter which metric is used, the goal stays the same: To increase revenue and profits. 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 pref...
In this way, TRevPAR can give you a truer sense of how much money your hotel is making on each room. TRevPAR is a particularly valuable metric for accommodation providers who offer plenty of add-on services, as room rates will only ever tell part of their financial story. What is the...
How to calculate it: RevPAR = TOTAL REVENUE FROM ALL ROOMS / TOTAL NUMBER OF ROOMS.For instance, if your hotel has 120 rooms, and you have received €23,500 in total from letting out some or all of these rooms, the calculation is €23,500/120 which gives a RevPAR of €195.83. Is...
The most straightforward way to calculate RevPAR is to multiply your ADR by your occupancy rate. The following RevPAR formula will give you the same result:Total room revenue / number of available rooms An example: The Grand Hotel generated €20,000 in room revenue by selling 200 of its 30...
Also, because the factors used to calculate these ratios are specific to every single business, they can be misleading when used as generic benchmarks for other businesses in the same industry. As previously explained, a more appropriate ratio to assess hotel profitability is ROS (Return on Sale...
Find out all about Hotel Average Daily Rate, including what it is, how to calculate it, when best to use it, and when not to. Read more on the Mews blog.
How to calculate RevPAR There are two RevPAR formulas: 1. Hotel Occupancy multiplied by Average Daily Rate 2. Room Revenue divided by Number of Rooms Available during a specified period RevPAR helps you compare month-over-month performance ...
RevPar = average daily rate * occupancy percentage To find the data needed to calculate the average market RevPar, you can use tools such as rate shoppers that monitor your competitor’s rates. You want to make sure you calculate your RGI using a RevPar that represents your closest competito...
Reducing variable costs like utilities, F&B inventory, and housekeeping supplies is often a quick way to boost profitability. Calculate cost per occupied room (CPOR) to understand the relationship between costs and occupancy. Look for opportunities for greater economies of scale and ensure that when...