Both room- and ancillary service pricing decisions must be made strategically, as the hotel must be able to cover their operational costs and turn a profit, without negatively impacting occupancy rates or minimizing conversion rates on ancillary offerings. RevPAG helps revenue managers make more accurate, data-based pricing decisions on the pricing of both rooms and ancillary revenue offerings.

Using RevPAG, revenue managers can also examine revenue at a more granular level, to identify opportunities for new ancillary revenue streams and/or areas of improvement on pricing to maximise conversion rates on existing ancillary offerings. RevPAG also enables a more holistic view of a property's revenue, which helps revenue managers more accurately identify the property's market position and ensure profitability over the long-term.

RevPAG is also useful for other guest-focused departments (i.e., F&B, spa, front desk, concierge, etc.), as it helps them to better understand the value that guests perceive in the property's ancillary revenue offerings. Using this information, the departments can identify opportunities to improve overall service quality and/or add new service offerings; as a result of these updates, hotels can optimize their property's perceived value (to potential guests) and maximize revenue opportunities.