TrevPAR or Total Revenue Per Available Room takes all revenue sources into account and not just the revenue generated from room rental. It is useful for assessing how much revenue a room generates on average.
Calculate your TrevPAR by entering your total revenue, number of rooms and days in the period you are measuring.
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Total Revenue Per Available Room is a metric similar to RevPAR, but also takes into account additional revenue sources that a hotel might have. Revenue is added to the total room revenue in order to provide a measurement of total revenue generated per available room.
The TrevPAR formula is:
|TrevPAR =||Total Revenue|
|Available Rooms · Days|
|Total Revenue =||Room Revenue + Additional Revenue|
Room Revenue is the revenue you earned by renting out rooms only. It does not take into account other revenue you might be generating from your vacation rental.
Additional revenue can come from sources like golfing, spa, restaurant, conferences, etc.
Available Rooms is the number of rooms you have available for sale. Rooms not available for some reason, like rooms occupied by staff or down for maintenance are excluded.
Days is the number of days in the period you are measuring for.
What is the use of TrevPAR?
TrevPAR is used to calculate the total revenue that an available room generates. It is similar to RevPAR, but while RevPAR is only concerned with revenue coming directly from room rental, TrevPAR also takes into account other sources of revenue like spa, golfing, excursions, transportation, conferences, banquets, etc.
Example of TrevPAR calculations
To calculate TrevPAR, you will first need to calculate Total Revenue. The Total Revenue consists of all your revenue contributions. This can be revenue from rooms, food and beverages, excursions, gift shops etc. Add up all of these numbers to get Total Revenue.
If you have 50 room and find that your Total Revenue was $1500000 during the last year, your TrevPAR is:
|50 · 365|
which equals $82.19.