Question: What Is A Good RevPAR Index?

How do you calculate RevPAR index?

To calculate the index you need to divide your RevPAR with the aggregated group of hotels’ RevPAR and multiply it by 100.

So, if your hotel’s RevPAR is $70 and the groups is $50 your RevPAR index will be 140 and you’ll be easily getting more than your expected market share..

Should RevPAR be high or low?

RevPAR fails to consider the size of a hotel. Therefore, RevPAR alone is not a good measure of overall performance. A hotel may have a lower RevPAR but still have more rooms that earn higher revenues. Additionally, growth in RevPAR does not mean that a hotel’s profits are increasing.

Why is RevPAR so important?

RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. RevPAR is important because it helps hoteliers measure the overall success of their hotel.

How do you increase RevPAR?

Top techniques to increase your hotel RevPAR Primary Strategies:Apply yield management.Implement different pricing strategies.Balance your occupancy percentage and ADR.Focus on Direct bookings.Reduce Cancellation Rate.

Can RevPAR be higher than ADR?

RevPAR vs ADR? Revenue per available room is a better measure of success than ADR is. This is because ADR does not take into account occupancy. You could charge $1000 per night for your hotel rooms (ADR = $1000) but if you only sell 1 room-night a year you haven’t been very successful.

What is the RevPAR index?

RevPar Index, is a measure that originates from RevPar. It focusses on comparing your hotels RevPar with the RevPar of the hotels in your competitive set. This calculation will allow you to see how well you are executing your sales and revenue management strategies relative to your competition.