[DEFINITION] RevPAR in under 100 words... - Click Travel

The term RevPAR is used often in business travel management, but what does it actually mean?

RevPAR is a key performance indicator used by the hotel industry to calculate a given hotel’s financial performance.

It stands for revenue per available room and it’s calculated by multiplying the average daily rate (ADR) with the occupancy rate. For example, if a hotel sold 100 of its 150 available rooms for a total of £11,500, the RevPAR would be:

ADR £115 (11,500 / 100) x occupancy rate 0.67 (100 / 150) = £77.05 RevPAR

However RevPAR is limited as a KPI, in the sense that it doesn’t take into consideration revenue generated from amenities and other hotel services such as spas and gyms.

If you’d like to find out how to use expert insider knowledge to select the perfect TMC for your organisation, download our totally free comprehensive guide below: 

About Author:

Alice Tew


Alice is Click Travel’s Content Coordinator and is responsible for all of our digital and print content, packaging up and presenting the wealth of expertise at Click in a way that works for you.