There are several hotel KPIs that help a hotel manager or a hotel revenue manager understand better the performance of the hotel and the effectiveness of the yield management actions. Such KPIs are the ADR (Average Daily Rate), the Occupancy Percentage, the Overall Revenue, the Reservations and Overnights numbers, the LOS (Lenght of Stay) and the Booking Window.
One of the most important hotel KPIs is the RevPAR (Revenue Per Available Room). The specific Key Performance Indicator shows the revenue produced per available room of the hotel and in fact combines the metrics of the Occupancy Ratio and the ADR. The RevPAR is given by dividing the Revenue by the Maximum Capacity of Overnights for a specific period. RevPAR can also be calculated by multiplying the ADR with the Occupancy Rate.
There is no use of improving only your Room Rate or the number of the Overnights sold per month, if the combination of the two factors is not positive. By tracking the change of your hotel’s RevPAR you are able to see whether the balance between the two indicators is improving or not. For example, you may lower your occupancy but achieve a higher increase in your room rates. In that case, your RevPAR will increase, showing that you will have a higher overall revenue for the specific period.
In order to easily track your hotel’s RevPAR you can use Bookwize’s Performance Reports offered in both the Value and Pro packages. The RevPAR is included in Bookwize’s main KPIs and you can track it per booking, arrival or departure period, compare it with previous seasons, filter it per country, channel or room type and even export the data in Excel for further analysis.
Choose Bookwize and take advantage of its dynamic Business Intelligence reports to track easily your hotel’s performance.