TRevPAR stands for Total Revenue per Available Room, and it is a key performance metric used in the hotel industry. It measures the total revenue generated by a hotel per available room, taking into account rooms sold, average daily rate, and other services provided by the hotel (such as food and beverage sales). TRevPAR is calculated by dividing total revenue by the total number of available rooms in the hotel.
TRevPAR typically differs across property types due to varying levels of demand, cost structures, and product offerings. For example, luxury properties often have a higher TRevPAR than budget hotels in the same area because they offer more amenities, better rooms at a higher price point, etc.
Some elements that can affect a hotel's TRevPAR include:
TRevPAR is calculated by adding together the room revenue and non-room revenue (such as food, beverage and other services) and dividing that amount by the total number of available rooms.
The TRevPAR formula is: TRevPAR = Total Revenue / Available Rooms
For example, let's say a hotel had a total revenue of $100,000 and 100 available rooms. The TRevPAR for the hotel in this example would be $1,000.
TRevPAR is important because it provides an overall measure of a hotel's revenue-generating ability by taking into account both occupancy and average daily rate. It allows hotel owners and managers to quickly and easily compare their performance to that of the competition and to assess how the hotel is performing relative to its goals. It can also help them identify areas for improvement and make better-informed decisions about pricing, marketing, and other operational aspects of their business.
A few ways to increase TRevPAR at a hotel include:
Everything you need to perfect the guest journey, boost revenue, and automate processes….