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Revenue Management Glossary

Revenue per Available Room (RevPAR)


Revenue Per Available Room (RevPAR) is perhaps the most reliable measure of success for a hotel. As opposed to ADR, RevPAR takes into account your occupancy rate, so allows you to compare against competitors of different sizes and price points. For example, if you are using ADR as a measure of success, you could simply sell one room a year at $1000 and your ADR would remain as $1000 but you haven’t been very successful.

How to use it



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