RevPAR, ProPAR, GOPPAR – confused?

There are many metrics used today to help assist our analysis and measurement of results. Below is a list of some of the most common terms and what they mean.

RevPAR – Revenue per available room (Total rooms revenue divided by total inventory)

– This is used to show the change in revenue outcomes (not profit) for a period of time compared to another

ProPAR – Profit per available room (profit divided by total inventory), also termed as Adjusted RevPAR (deducting costs)

– This is talked about more today as there are larger costs associated with acquiring business the RevPAR metric may show increased revenue but profits may not be positive.

– This is an important factor to consider in addition to RevPAR and should be looked at at weekly forecasting meetings to always see how ProPAR is tracking.

TREVPAR – Total revenue per available room (Total revenue divided by total inventory)

TREVPEC – Total revenue per each customer (Total revenue divided by total customers)

– This concept looks at total guest spend. It is important to look at so decisions on various market segments can consider the overall profitability of the segment to the property, not just the rooms revenue they bring in.

GOPPAR – Gross Operating Profit per available room (Gross Operating profit divided by total inventory)

– similar concept to ProPAR

REVPAM – Conference and Banqueting Revenue per available Square Meter (Conferencing revenue divided per available square meter)

– this concept looks at applying revenue management principles to conferencing space to determine the return on investment of the space

REVPASH – Revenue per available seat and hour (Food and beverage revenue divided by per available restaurant seat broken down per available hour)

– this concept applies revenue management principles to restaurants looking at maximising the return on investment of each seat within each hour of available dining time.

 

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