How To Calculate Revenue Per Available Room (RevPAR)

RevPAR which stands for Revenue Per Available Room is one of the highly used key metrics among hoteliers to have a quick glance of how they are performing.

By using RevPAR, hoteliers can have a better insight in measuring the hotel’s ability to generate greater revenue from each room. For example, if you have 80 rooms and your RevPAR is RM90, you may use the amount of RM7,200 as a benchmark of your room sales per night.

By closely monitoring RevPAR, you can have a better understanding on how to price your rooms more accurately as well as improving your occupancy.

So how do we calculate RevPAR? The quickest way is by dividing your average income per night with your total number of rooms.

One thing that hotel operators should take note is selling rooms at low rates does not guarantee a profit. Instead of targeting for high occupancy, hoteliers should at least target high RevPAR because the increase in your RevPAR indicates that your hotel is performing well unlike getting 100% occupancy with a low room rate.

There are many ways you can find online on how to increase your RevPAR. One of the ways is by offering longer stay at your hotel. You can do this by giving out special promo code to your guests with minimum night discount.

Ultimately, increasing your RevPAR depends on your guest booking your property. Thus, ensuring that guests are able to find you online and have a seamless booking process on your website is crucial.

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