Revpar is a specialized term in hotels and hotel businessman must understand them. How important and its impact is directly on hotel profits? However, not everyone knows what Revpar is, learn it through the following article?
What is Revpar?
Revpar stands for Revenue Per Available Room. This is considered an indicator of revenue, obtained on the existing rooms of the hotel. It has an important role in measuring that hotel’s business performance over a period of time. At the same time it also reflects the actual revenue on the number of rooms that the hotel is providing including rooms with guests and no guests.
If you are a hotel manager, the Revpar index is quite interesting. At this point you need to know how the revenue results can help you evaluate the business performance of your hotel in a certain time and have a more appropriate direction of change. If the Revpar index goes down you need to reconsider from the room, the operation of the parts as well as the services that the hotel brings to the customer. So you can improve, change to attract more customers and improve Revpar.
Revpar calculation in the hotel:
Revpar can be considered an important financial calculation that any hotel needs. To manage, you can see the turnover of the hotel made in a certain time period.
Revpar = Room revenue / Number of rooms available
Revpar is counted as an income indicator as a percentage of room sales, excluding other factors such as tour, room service, catering and spa services. These figures will be compared between time periods and come up with new business strategies if Revpar shows signs of going down.
What is the importance of Revpar in today’s hotel business?
Revpar is considered to be the most important financial calculation of all room rate calculations used in hotels. Therefore, this index is often used by hotel managers as a basis for making appropriate business methods.
Revpar provides a specific view for executives about the performance of the hotel over a period of time. In addition, some managers apply this index to compare with rival hotels during the same period. Now they can review, compare, analyze, make and change strategies to help the hotel grow more and more.
Increasing Revpar to help the hotel grow more
Today’s hotel business in our country has a great potential for development. So the competition for each hotel service also increased. Many hotels want to grow stronger than their competitors in terms of profit as well as customers, so they will pay much attention to the Revpar index. So try the following methods to increase Revpar:
1. Develop a revenue management strategy:
When the daily turnover of the hotel is based not only on its daily renting. Besides, it is also a comprehensive system from management to other marketing activities, other supply channels or simply incentive programs for customers.
2. Upgrade service quality:
Quality of service is now an important factor to retain customers. It will give customers the most satisfaction and make customers ready to come back and recommend more friends to your hotel. Quality upgrades require all parts to be available and need to be upgraded with modern equipment as well as the best facilities.
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3. Good control of hotel information on the Internet:
Most customers come to the place to book a hotel room. But before deciding to book, they all have behaviors to learn information online. Then they will thoroughly understand the information and reviews about the quality of the room, hotel prices. If there are too many bad reviews, surely customers will skip immediately and choose a better hotel place. So the hotel services must always be good and trusted by many customers, the revenue will surely increase.
Hopefully the information we share above will help your hotel find the best ways. And you can bring better services to growing Revpar for your own hotel.