TrevPAR — Total Revenue Per Available Room

What is TrevPAR? — Explanation

TrevPAR stands for “Total Revenue Per Available Room” and is a derivative of the key figure “RevPAR”. With this KPI Calculate the average total revenue per available room. In contrast to RevPAR, it includes all revenue that consists of lodging, catering and additional sales. The advantage is that it not only focuses on accommodation, but also on other revenues. It therefore provides a better overall overview, as gastronomy, wellness, conference and banquet sales are also considered. This is particularly important for full hotels and holiday hotels, as they are closely linked to hotel occupancy.

TrevPAR is less well known than RevPAR, but it is much more meaningful in many ways. You should definitely consider it.

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The TrevPAR is calculated as follows:

TrevPAR = total revenue/total available rooms

TrevPAR = (ADR + additional turnover) * occupancy in %

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TrevPAR calculation

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Sample calculation

In the following example, our hotel has 100 rooms of which 50 are occupied. The daily rate Is €70. In addition, there is an average of €10 in turnover per room. This results in a total turnover of €4000. The TrevPAR is calculated as follows:

• €4000/100 = €40

or something like this:

• €80 * 50% = €40

The example hotel has a TrevPAR of €40.

The KPI can be determined for various periods, such as a day, a week, a month, or a year.

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Application in practice

The TrevPAR provides information on how well the entire capacities in the hotel have been used. It is therefore particularly used when you compare different guest segments. This is the case in the displacement analysis. It is used to find out which requests should be accepted.

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Guest segments include bus travelers, conference guests and individual travelers. As a rule, they pay different prices, which result in different average rates. However, additional sales are often neglected. A conference guest, for example, may be staying at the company rate for a single room rate. This rate is significantly below the double room rate for individual travelers.

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First and foremost, it depends on how much additional revenue can be generated by the various guest segments. The conference guest pays a conference package and, if necessary, still makes sales in the hotel bar. And the individual traveller? What is the probability that he will come to the restaurant and/or book treatments? Of course, that varies from hotel to hotel. And that is exactly why TrevPAR is the ideal comparative indicator. It is crucial that the additional turnover is taken into account and not exclusively the logistics turnover. We have written an interesting blog post about increasing sales in the hotel industry! Read it now.

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conclusion

As with RevPAR, this key figure combines average sales per person and workload. We recommend that you identify and compare TrevPAR in addition to RevPAR. This gives you a good overview of the profitability of your capacities.

As always, this key figure should also be critically scrutinized. It is generally good to critically look at the factors that contribute to a key figure. What led to the result? Which factors had the biggest impact? Can you draw conclusions from this key figure? What opportunities for improvement can be identified as a result?

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