A key hotel KPI calculated by dividing total room revenue by the number of available rooms.
Revenue Per Available Room (RevPAR) is the standard performance metric in the hospitality industry. It combines occupancy and pricing into a single number.
Formula: Average Daily Rate (ADR) × Occupancy Rates.
You could have 100% occupancy by selling rooms for $1 (terrible RevPAR). You could have a $500 rate but only sell 1 room (terrible RevPAR). RevPAR helps you find the sweet spot between rate and volume.
By driving direct bookings (lower CPA than OTAs) and filling shoulder dates (increasing occupancy when it's needed most), SEO and PPC directly lift RevPAR.
Browse related definitions in the same glossary category.
Audience Segmentation
Dividing potential guests into groups based on behaviour, demographics, or interests to tailor marketing messages.
Average Daily Rate (ADR)
A hotel performance metric showing the average income per paid room occupied in a given time period.
Booking Engine
An online reservation system that allows hotels to take direct bookings through their website, usually integrated with PMS or channel managers.
Booking Funnel
The journey from awareness to reservation. Includes discovery, consideration, booking, and post-stay loyalty stages.
Booking Window
The number of days between when a guest books and their arrival date - valuable for campaign timing and segmentation.
Build vs Buy
The strategic decision between developing custom solutions or purchasing existing products and services.
Understanding "Revenue Per Available Room (RevPAR)" is just the first step. Our team at TwoSquares specializes in technical SEO and digital strategy, helping brands turn complex concepts into measurable growth.