How To Calculate Total Revenue In Hotel

Here you will find the top 5 key performance indicators.

How to calculate total revenue in hotel. It is important for hotels to keep track of this data on a daily basis to identify the. It measures in effect the revenue generation capability of the hotel. In a 300 room hotel 70 occupancy equals 210 rooms occupied. In america for a basic hotel usually the incremental cost is about 20 and the burdened cost is about 40.

Revenue per available room revpar is a performance measure used in the hospitality industry. Let s use 10 000 room nights. The other way to calculate it is by dividing the total number of rooms available in your hotel with the total revenue from the night. It is a hotel kpi calculation that shows the percentage of available rooms or beds being sold for a certain period of time.

Formula for calculating revenue per available room revpar revenue per available room revpar is one of the most important statistics in the hotel industry revpar divides the total revenue generated by the hotel by the number of available rooms to sell available rooms total rooms in the hotel out of order rooms. 400 000 10 000 room nights 40. What are the most important revenue management formulas in the hospitality industry and how to calculate them. Revpar is calculated by multiplying a hotel s average daily room rate by its occupancy rate.