trevpar
Despite Global Pressures, April Hotel Profit Up
HotStats | May 31, 2022
The higher cost for goods is not yet wrecking traveler appetite. Despite record gas prices, ballooning airfares and crippling inflation roiling the globe, hotel performance remained widely steady, if not getting better, in April, with increases in both the top and bottom line. In the U.S., April gross operating performance per available room (GOPPAR) hit $96.08, which was 92% back to where it was pre-pandemic. Accounting for the rise was a strong top line that featured both growth in occupancy and average daily rate, with the latter outpacing where it was in April 2019, $5 higher on a nominal basis. Total revenue per...
Using Soft Metrics to Guide Hotel Operations
Larry and Adam Mogelonsky | April 27, 2022
By Larry and Adam Mogelonsky There are some classic metrics that hotels use to benchmark performance – namely, RevPAR and ADR. If you’ve been reading our column, you’ll know that we are in favor of developing thoroughly connected tech stacks that will allow hotels to measure TRevPAR – total revenue per guest – in order to guide business intelligence and make better decisions about which customers to target. But with more granular operational data tied in, hotels can perhaps measure even more. These might be called ‘soft data’ or ‘soft metrics’ in years past, but now our industry’s systems are becoming advanced enough...
Rethinking the Gift Shop as a Part of a TRevPAR Strategy
Larry and Adam Mogelonsky | March 9, 2022
By Larry and Adam Mogelonsky The gift shop is for many hoteliers an afterthought. But a win is a win, and as travel recovery gets underway for a gangbusters summer of 2022 (our hope at least), it’s time for all hotels to consider operating under the model of optimizing revenue on a per guest basis (otherwise called TRevPAR) rather than simply trying to maximize occupancy. By doing so, you can drive a better topline and healthier margin without having to rely on those 100% occ summer weekends (which may not be possible due to labor shortages) or the full-fledged return of corporate guests to buoy midweek occ. Hence, there’s a strong ...
Five PMS Features to Help Grow TRevPAR
Larry and Adam Mogelonsky | April 29, 2021
By Larry and Adam Mogelonsky In case you need a refresher on your acronyms, TRevPAR stands for total revenue per available room. The key difference between it and RevPAR is that it takes into account all other outlet purchases from each guest to give a more holistic picture of sales and growth. As a basic example, consider a couple traveling for a relaxing getaway versus two single occupancy business travelers, both midweek. While the couple may take up only one guestroom versus two, its utilization of the restaurant, spa and other amenities will be substantially higher than the corporate guests. Having differential data on these types ...
How a Total Revenue Approach Can Benefit Your Hotel
HotStats | December 9, 2020
Since the pandemic snuffed out hotel room demand, hoteliers have been digging through the resulting financial rubble in search of revenue. Unfortunately, focusing solely on revenue generation from rooms can obscure financial recovery vision. Exploring and mining for revenue generation outside of rooms is a first step in getting back to profitability. By measuring and monitoring total revenue per available room (TRevPAR), hoteliers have the ability to take a magnifying glass to all revenue sources and identify both underperformance and outperformance. Above all, it can reveal revenue opportunities to help carry a hotel out of the pandemic c...
What Is TRevPAR (Definition and Why It Matters)?
David Eisen | June 10, 2019
By David Eisen In a previous blog post, I took aim at RevPAR. My pursuit: to puncture the long-held notion that it’s the most exemplary data point to consult within the hospitality industry. And, according to one comment, I succeeded in doing so (thank you, Don Weintraub, you made my mother very proud). My thesis was not that RevPAR is obsolete; following it is still necessary, especially since RevPAR tracks revenue derived from the rooms department, the largest source of revenue for a hotel. It’s akin to tracking cap rates when investing in hotels—one data point but not the end-all. RevPAR (a combination of rate and occupancy) is...
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