Room Revenue per Available Room

Why it’s important

Room Revenue per Available Room (or REVPAR) is a core metric for Hotel and Motel Owners, as it gives a clear picture of how effectively rooms are being utilised as a means of revenue generation. A low REVPAR and a high Occupancy percentage may indicate that the hotel’s pricing is too low and needs to be reevaluated, whilst a low REVPAR and a low Occupancy percentage points the finger of blame at the hotel’s ability to attract customers.

How to create it 

Step One

To create our metric in FUTRLI we’ll need to know:

  1. Total Room Revenue
  2. Total number of rooms

Total room revenue is a financial metric which can be sourced from your accountancy platform of choice or uploaded into FUTRLI via CSV. Total number of rooms is a non-financial metric which will have to be uploaded via CSV.

Step Two

Once you’ve imported, uploaded or synced the necessary variables, you’ll be able to create REVPAR by dividing your Total Room Revenue by your Total number of rooms.

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