Revenue
RevPAR (Revenue Per Available Room)
A key performance indicator (KPI) that measures the average revenue generated for each room or unit available in a given period.
What is RevPAR?
RevPAR (Revenue Per Available Room) is one of the most important metrics in the hospitality industry. It represents the revenue generated for each available housing unit, regardless of whether it was occupied or not.
RevPAR Formula
RevPAR can be calculated in two ways:
- RevPAR = Average Daily Rate (ADR) x Occupancy Rate
- RevPAR = Total Room Revenue / Total Number of Available Rooms
Practical Example
If you have an apartment that you rent for €100 per night (ADR) and in the month of June it was occupied for 70% of the days:
- RevPAR = €100 x 0.70 = €70
This means that, on average, every day in June that single apartment generated €70 for you, even if it generated €0 on empty days.
How to Increase RevPAR with AI?
To increase RevPAR, you have two levers: raising prices or raising occupancy. Rentevo helps you on both fronts:
- Immediate 24/7 responses: Responding within 5 minutes drastically increases the conversion from "request" to "booking" (occupancy rate).
- Upselling: Rentevo automatically proposes extra services (late check-out, extra cleaning) that increase the average booking value (and thus indirect ADR and RevPAR).