Total Revenue Per Available Room Definition

More revenue per occupied room revpor.

Total revenue per available room definition. This metric is the sum total of net revenues from all operated departments plus rentals and other income per available room for the period divided by the total available rooms during the period. Total revenue per available room or trevpar is a kpi used by those within the hotel industry to assess business results. This calculation is preferable for the management board and the accountants to have a. As a result it can play an important role in a revenue management strategy and can provide a useful snapshot of overall performance.

However if the calculation uses total hotel revenue instead of guestroom revenue it equals trevpar total revenue per available room. Revenue per available room or revpar for short is a ratio commonly used to measure financial performance in the hospitality industry. What is the meaning definition of trevpar in the hospitality industry. It is a hotel kpi that gives a preview of the total revenue from all departments which the room can generate.

While revpar only takes account of the revenue generated by the rooms. The other way to calculate it is by dividing the total number of rooms available in your hotel with the total revenue from the night. The metric which is a function of both room rates and occupancy is one of the most important gauges of health among hotel operators. In a 300 room hotel 70 occupancy equals 210 rooms occupied.

Multiply that by 100 and you will get 21 000 as your total room revenue. This is the total revenue per available room. As a metric it is concerned with both room revenue and occupancy rate which makes it an important indicator of the overall performance of a hotel as well as a useful component of a revenue management strategy. Revpar is calculated by multiplying a hotel s average daily room rate by its occupancy rate.

Revenue per available room or revpar as it is usually shortened to is a kpi used within the hotel industry in order to assess financial and business performance. It can also be determined by dividing the total room revenue by the total available rooms. Revpar or revenue per available room is a performance metric in the hotel industry that is calculated by dividing a hotel s total guestroom revenue by the room count and the number of days in the period being measured. Revenue per available room revpar is a performance measure used in the hospitality industry.

It is concerned with total revenue generated from rooms and space available.