# RevPar

RevPAR stands for revenue per available room (in German: revenue per available room capacity). It is used as a general measurement to compare the profitability of hotels of different sizes. If one speaks of RevPAR, this is the accommodation revenue per available room. It can be calculated either from the gross or net proceeds.

## background

The RevPar is one of several important KPIs (Key Performance Indicators). These key parameters support revenue management and hotel managers in making important decisions for the future. They also provide information on how the hotel's strategies used so far have worked. The calculation of the RevPars requires a precise data analysis. The RevPar can be calculated from different time periods, i. H. it is possible to calculate it from the proceeds of a day, a week, a month or a year. The TRevPar is an extension of the RevPAr , which not only looks at the income from accommodation , but also at the total sales.

## calculation

```Rechenweg: RevPAR = Netto-Logisumsatz : Summe verfügbarer Zimmer
Beispiel:  Sie machen an einem Tag einen Netto-Logisumsatz von 4500 Euro, bei 80 verfügbaren Zimmern, wovon 55 belegt sind.
Rechnung:  4.500 € : 80 = 56,25 €
Ergebnis:  Der Logiserlös pro verfügbarem Zimmer an diesem Tag beträgt 56,25 Euro
```

Alternatively, the RevPAR can also be calculated as follows:

```Rechenweg: RevPAR = Belegung in % x Durchschnittspreis
```

Reason:

1. The occupancy rate (OR) is always calculated in percent, the calculation works as follows:

```Rechenweg: OR = Summe belegter Zimmer : Summe verfügbare Zimmer
Beispiel: ein Hotel hat 80 Zimmer, davon waren 55 Zimmer belegt
Rechnung: 55 : 80 * 100 = 68,75 %
Ergebnis: Das Hotel hat demnach eine Auslastung von 68,75 %
```

2. The calculation of the average room rate (ARR) works as follows:

```Rechenweg: ARR = Logisumsatz : Summe belegter Zimmer
Beispiel:  Sie machen an einem Tag einen Logisumsatz von 4.500 Euro bei 55 belegten Zimmern
Rechnung:  4.500 € : 55 = 81,8 €
Ergebnis:  Die Zimmerdurchschnittsrate beträgt 81,80 €.
```

3. If you take the formulas for OR and ARR and multiply them, you get the following formula:

```          Vermietete Zimmer       Logisumsatz
RevPAR =  -----------------  x  ----------------
Verfügbare Zimmer     Vermietete Zimmer
```

4. By shortening the multiplications, the following formula results, which corresponds exactly to the solution as described above

```RevPAR = Logisumsatz : Verfügbare Zimmer
```

## problem

The RevPar cannot always be used as an optimal measurement number. Due to different hotel categories with different price ranges, the RevPar is only partially meaningful.

```Beispiel 1 : Hotel X verfügt über 100 Zimmer, davon sind 50 Zimmer belegt mit einer Durchschnittsrate von 100 €
Rechnung:  5000€ : 100 Zimmer = 50 €
Ergebnis:  Der RevPar ist somit 50 €
```
```Beispiel 2 : Hotel Y verfügt über 100 Zimmer, davon sind 100 Zimmer belegt mit einer Durchschnittsrate von 50 €
Rechnung:  5000€ : 100 Zimmer = 50 €
Ergebnis:  Der RevPar ist somit 50 €
```

From a revenue management perspective, Hotel Y does not operate profitably. A look at the parameters for calculating the RevPar reflects a differentiated situation. Another problem for the calculation of the RevPar is that no costs for room use and no income from additional room services are included.