Revenue Management Glossary

RevPOR (Revenue per Occupied Room)

Definition

Revenue per Occupied Room (RevPOR) is a revenue management metric that measures the total revenue earned per occupied room during a set period of time. This metric offers a comprehensive view of revenue, as it includes all sources of revenue related to occupied rooms (including room service fees, mini-bar sales, etc.), as well as non-room revenue (including the bar, restaurant, spa facillities, parking, etc.).

How to use it

RevPOR is beneficial in assessing how effective a property is at upselling, as it measures the total revenue generated from each occupied room, not just the base room rate; a high RevPOR shows that the property is effective at encouraging guests to spend more during their stay.

RevPOR also gives hotels a deeper understanding of their guests' spending behavior; if the property's RevPOR is rising while ADR is steady, it shows that guests are purchasing add-ons and that the property's upselling strategies are effective.

Formula

To calculate RevPOR, divide the total room revenue (during a set period of the time), by the total number of occupied rooms (during the same time period).

RevPOR= Total room revenue / Total number of occupied rooms

Related Terms

RevPAR (Revenue per Available Room), ADR, Occupancy, Revenue Management Metrics, Revenue Management, Revenue Manager, TRevPAR, RevPAG, GOPPAR
“RevPOR is a useful metric for revenue managers who are are focused on profit maximization, as it emphasizes the importance of driving ancillary revenue to increase the overall spend, per room. Increasing RevPOR can improve a property’s overall profitability, especially in competitive markets or during periods of low-occupancy. To boost RevPOR, hotels should offer additional, paid services or products that will appeal to their specific clientele; for example, if a property is located in a destination with many popular tourist attractions, they could offer a package rate which includes tickets to the most popular attractions to maximize ancillary revenue conversions.”

Tim Boersma

Tim Boersma
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