What is Revpar?

Revpar or Revenue Pervailable Room , in Spanish, income per available room , is a key performance indicator (KPI) used in the hotel industry. This meter allows to evaluate the financial efficiency of a hotel by relating the income generated with the total available rooms , regardless of whether they have been occupied or not.

Unlike other indicators that only focus on the occupation or the average daily rate, the Revpar offers a more complete vision of the general performance of an establishment. Its usefulness focuses on combines two essential factors: Average Daily Rate or the daily average rate (ADR) and the occupation rate .

In the competitive hotel sector, the implementation of Revenue Management has become an essential tool to maximize income , optimize occupation and guarantee profitability . This approach allows hotels to adapt sharply to market fluctuations and changes in customer behavior.

Main characteristics of the Revpar and what income measures?

Some of its main characteristics are:

• Comprehensive indicator: combines average price and occupation.
• It focuses on income: it measures only accommodation income, does not include additional sales such as extra services.
• Applicable to any hotel size: from small to large chains.
• Comparison : allows comparisons between periods or direct competition.

The Revpar does not use the total income of the hotel, but only those from accommodation.

How is the Revpar calculated? With examples!

There are two main formulas to calculate the Revpar . Below we leave you an example so you can visualize it better.

A hotel has 90 rooms and charges an average rate of € 100 per night. For 30 days, he has rented an average of 72 rooms a day.

Both formulas lead to the same result, depending on the available data.

How important is Revpar? How can you help the profitability of hotels?

Revpar is very important, since it allows :

• Measure the real performance of the hotel beyond the rate or the number of guests.
• Identify improvement opportunities price strategies or seasonal marketing campaigns
• Optimize income , since it shows whether it is more profitable to increase occupation or raise prices.
• Evaluate strategic decisions such as renovations , expansion or operational cuts .

Revpar in a hotel is a strategy that seeks to maximize income and profitability strategic data (market data, rates, analytical, metric data ...). This methodology is based on collection and analysis to provide demand, identify client behavior patterns and adjust prices and real -time strategies.

Revpar: Advantages and Disadvantages

Advantages:

• Easy to calculate : only income and availability are required.
• and external comparisons : ideal for evaluating growth.
• Help in the planning and adjustment of prices.

Disadvantages:

• It does not measure direct profitability : only income, not net benefits.
• Ignore other income : such as restaurants, events or spas.
• It does not reflect seasonalities if it is not analyzed together with the historical.

How to improve Revpar? And considerations to take into account

• It must be analyzed frequently (daily, weekly, monthly).
• Compare with previous years and similar hotels (competitors).
• Complement with other indicators such as ADR (average daily rate).
• It should not be the only metric that is measured. Final profitability includes more factors.
• Dynamic price management S: Adjust the rates in real time according to demand, competition, local events and projected occupation. bar rates as a standard reference for dynamic variations.
• Market segmentation : identify and prioritize different customer segments (corporate, tourists, groups, etc.) and design specific strategies for each one.
• Inventory Management : Optimize the availability of rooms for each distribution channel, reserving certain categories of rooms for more profitable segments and avoiding excessive Over booking through strategic management.

With the recent growth of digital tourism and online reserves , controlling these metrics in real time has become essential for many of these hotel businesses.

Why choose Check-In Scan and forget about trouble?

Calculating the Revpar is only part of a good hotel management. You also need to control the check-in , the legality of guests , and automatically send the parties to the authorities, as required by law in many countries.

Check-in Scan not only helps you comply with the law, but allows you to focus on the important thing: improve your income and give better customer service. intuitive , legal and efficient tool that adapts to the rhythm of the tourism sector.