TRevPAR: total revenue per available room, and how to work it out

1. 1Choose the period: a night, a week or a month.
2. 2Add up the total revenue for it: rooms, food and drink, banquets and events, laundry, transfers, the spa and anything else guests pay for, all without tax.
3. 3Count the rooms available: your rooms multiplied by the nights in the period, the same as for RevPAR.
4. 4Divide the total revenue by the rooms available. The answer is in rupees: what each room you had brought in for the whole hotel, on average, on each night.

The calculator on this page opens on the same month. Put in your own total revenue and rooms available to see yours.

• Count revenue from every department: rooms, the restaurant and bar, room service, banquets and events, the spa, laundry, transfers, parking and the shop.
• Count revenue from guests who don't stay, such as a family hiring your hall for a wedding. HSMAI's glossary counts the revenue from local guests too, beyond the rooms.
• Leave out tax, so one month compares with another when the tax changes.
• Leave out money that only passes through, such as a taxi you pay for on a guest's behalf at cost, or count it the same way every month.
• Split a package that includes breakfast between rooms and food and drink, the same way every month, so RevPAR and TRevPAR both stay honest.
• Count rooms available exactly as for RevPAR.

RevPAR is the figure for pricing rooms. TRevPAR is the one to read when rooms are not all you sell: a hotel with a busy restaurant or a banquet hall can take more from a room sold to guests who dine in than from a dearer room sold to guests who don't.

Revenue is not profit, though. A rupee from the restaurant comes with the cost of the food, the kitchen and the service, so read GOPPAR beside TRevPAR before you decide which guests to chase.

• What the revenue cost to earn. TRevPAR counts revenue, not profit: a busy restaurant can still lose money.
• Which department grew. Work out each department's revenue per available room too, such as food and drink per available room, to see where a change came from.
• Whether the rooms were priced right. Strong takings in the restaurant can hide rooms sold too cheaply, so read RevPAR and average room rate beside it.
• How you compare with other hotels. EHL Hospitality Business School notes that STR's benchmark reports cover room revenue only, so for the rest of the hotel you compare mostly with your own past.

• Offer breakfast, dinner, transfers and a late check-out when guests book on your own website and again when they arrive.
• Sell your hall, garden or terrace for weddings, meetings and parties, above all on nights when rooms are quiet.
• Price packages so the room's part is not given away to sell the meal.
• Reach the companies and event organisers in your town, who book rooms and meals together.
• Read what guests say about the restaurant and extras in their reviews, and fix what puts them off.