Total Revenue per Available Room (TRevPAR) is a key performance indicator used in the hospitality industry to measure the total revenue generated by each available room in a hotel or property. It encompasses all revenue sources, including room revenue, food and beverage sales, spa services, and other ancillary income, divided by the total number of available rooms. TRevPAR provides a comprehensive overview of a property's revenue-generating potential, taking into account all revenue streams, and is valuable for assessing overall financial performance and efficiency.
What is Total Revenue per Available Room (TRevPAR)?
Total Revenue per Available Room (TRevPAR) is a metric used in the hospitality industry to measure the total revenue generated by each available room in a hotel or property. It includes all revenue sources such as room revenue, food and beverage sales, and other ancillary income, divided by the total number of available rooms.
How is TRevPAR calculated?
TRevPAR is calculated by dividing the total revenue generated by a hotel or property by the total number of available rooms during a specific period. It provides a comprehensive understanding of a property's revenue-generating performance, considering all revenue streams and available inventory.
