Revenue Per Available Room combines your nightly rate and occupancy into a single number. It's the metric that tells you whether you're actually maximising your property's earning potential.
Use this when you know your average nightly rate and your occupancy percentage. Useful for quick estimates and comparing against market benchmarks.
Use this when you have actual revenue figures. More precise for historical analysis since it uses real earnings rather than averages.
ADR and occupancy alone only tell you half the picture. RevPAR combines them into a single number that reflects total earning power.
High ADR with low occupancy isn't winning. A $400/night property at 40% occupancy earns less than a $250/night property at 80%. RevPAR makes this obvious instantly.
Compare properties on equal footing. A studio and a 4-bedroom have different ADRs, but RevPAR normalises them so you can see which is truly earning more per available night.
Spot pricing strategy problems. If your ADR went up but RevPAR stayed flat, you're pricing too aggressively — gaining per-night revenue but losing it on empty nights.
RevPrism calculates RevPAR automatically for every property using your live PMS data. No manual entry. Just ask.