trevpar
What Can Hoteliers Really Learn From TrevPAR?
Jason Q. Freed | May 16, 2023
By Jason Q. Freed Ancillary revenues are skyrocketing and total revenue figures can help hotels benchmark performance against their comp set, but operational decisions should be made by diving deeper. Because it provides a more holistic view of the revenue generated across an entire property, more hospitality leaders are turning to TrevPAR (Total Revenue Per Available Room) as a key measurement in their benchmarking and operational strategies. To calculate TrevPAR, hotels add all revenue generated from room sales, food and beverage sales, meeting room rental and spa services, and other sources of revenue, such as parking, resort fees...
U.S. Hotel TRevPAR Highest On Record in March
STR | May 2, 2023
HENDERSONVILLE, Tennessee—U.S. hotel total revenue per available room (TRevPAR) was the highest for any month on record, according to STR‘s March 2023 P&L data release. March 2023 per-available-room metrics (% change from March 2022) GOPPAR: US$95.12 (+14.5%) TRevPAR: US$238.22 (+17.5%) EBITDA PAR: US$71.07 (+14.4%) LPAR (Labor Costs): US$74.43 (+23.4%) “Revenues and profits improved for a second consecutive month with each of the key profit-and-loss metrics showing double-digit growth year over year,” said Raquel Ortiz, STR’s director of financial performance. “The increase in TRevPAR prevent...
It’s Time to Re-Evaluate Hotel Performance Metrics, Says HVS
HVS | March 7, 2023
07 March 2023, London: Hotel operators need to learn to manage the entire building they operate and start thinking of performance in terms of the total revenue or profit per available square metre, giving a more accurate assessment of the property’s success. This is the conclusion of a new report from global hotel consultancy HVS, which considers the limitations of various hotel performance indices used in the hotel sector as a benchmark for hotel investment, for property valuations and for analysing operating success. The most widely used performance index is Rooms Revenue per Available Room [RevPAR] which, HVS says, can be a usef...
Hotel Performance Pushes Back to Seasonal Patterns
HotStats | October 31, 2022
As the global pandemic appears further in the rearview mirror, hotel performance is driving back to more recognizable, dependable and stable movements on the top and bottom line. Consider, first, Europe. There, gross operating performance in September 2022 was up 39% over August 2022. In comparison, GOPPAR in September 2019 increased 34% versus August 2019. Meanwhile, total revenue per available room (TRevPAR), grew 20% in September 2022 versus August 2022 and 18% in September 2019 versus to August 2019. It’s getting clearer that hotel performance is becoming more dependable and based on seasonality rather than other market variables,...
Hotel Revenue Management Best Practice, Shifting From Revenue Management to Profit Management
Ahmed Mahmoud | August 11, 2022
By Ahmed Mahmoud Good revenue management defines a property's bottom line. ... A profit management strategy determines a property's net revenue, Revenue management in hotels is a practice that has evolved significantly in its relatively short history, demonstrated great success using inventory, capacity and pricing to ‘manage’ revenue and probability, although hotel revenue management doesn’t evolve fast, strategies aimed at improving it develop in tandem with modern business and technological trends. What is the Revenue and Profit Management Role? Revenue management revolves around measurement of what customers from different ...
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 ...
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