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Article: Things you didn’t know about RevPAR | by Ira Vouk September 15th, 2014

RevPAR is not the most perfect index for measuring a hotel’s actual productivity (or, the Revenue Management and pricing strategy, to be exact), regardless of the widely spread opinion in the hotel industry. This statistic does not objectively reflect the performance (and profitability) of your hotel.

It is better to avoid using RevPAR when measuring the performance of your property. The best way to make sure that you’re aiming at the maximum potential profit is to adjust your strategy in terms of the new, more accurate, performance indicator: Adjusted RevPAR, a clear reflection of the bottom line. And if you are not sure how to make it work – invest in a Revenue Management system, it will pay off quickly.

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1 Comment




Sunil Singh - April 07, 18 02:13 am

This is really insightful article, thanks for sharing

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