Calculate Your Property's TrevPAR With Just a Few Clicks

TrevPAR is a key performance indicator for hoteliers in hybrid hospitality, as it measures revenue from varied and additional revenue channels.

What is TrevPAR?

TrevPAR stands for total revenue per available room. This hotel metric is increasingly crucial, as diversified revenue streams can be the difference between survival and success. Like RevPAR and ADR, TrevPAR provides insights to optimize revenue.

TrevPAR considers all your hotel's revenue sources and applies them back to how many rooms you have.

Example: Your hotel can generate revenue from various sources such as the bar, restaurant, parking, pools, spas, minibar, massages, exercise classes, gym, retail sales, and excursion bookings.

Travel has changed, allowing for more flexibility and increased revenue beyond reservations. However, tracking supplementary revenue against your rooms is still relevant because the money is still being generated from the guests in those rooms. Learn how to calculate the TrevPAR formula below.

How Do You Calculate a Hotel’s TrevPAR?

Here's the formula to calculate your total revenue per available room:
TrevPAR = Total Revenue/ Number of Available Rooms.

For example, if your hotel raked in R20,000 net revenue with 70 available rooms, your TrevPAR is R285.

It's important to keep an eye on TrevPAR, as it tracks the growth in both room occupancy and average revenue.

What is TrevPAR VS RevPAR

While TrevPAR and RevPAR may appear akin, the crux of differentiation resides within the 'T'. With TrevPAR, you'll have a 'total' view of your hotel's revenue performance against rooms. This includes revenue from food and beverage services, spa treatments, and other amenities your hotel offers. Whereas RevPAR (revenue per available room) only relates to room revenue.

TrevPAR and RevPAR are essential metrics for hotel revenue management, with RevPAR being the easiest and quickest way to monitor hotel performance. However, it does not measure the return on your investment—so while it tells a story about your revenue, it does not indicate overall profitability or the actual occupancy rate of your hotel.

How to Increase Your Hotel’s TrevPAR in 4 Ways

Strategy 1: Include add-ons in your hotel booking engine.

Allow guests to personalize their stay when they book directly by selecting and paying for upgraded room features, such as early check-in / late check-out, snack baskets, or a bottle of champagne.

If you're looking to boost your TrevPAR, it's crucial to utilise a booking engine that offers bookable add-ons.

Strategy 2: Create enticing holiday packages.

It's no surprise that romance packages and spa stays are such popular choices. Consider bundling accommodation with activities or amenities offered by your hotel or partnering with local businesses.

To get guests to take the plunge, you should provide a package total and a price breakdown demonstrating a discount on the room, service (or both). Remember, it's all about delivering value!

Strategy 3: Make the most of the unused areas in your hotel.

You can convert unused space into bookable services for guests. Consider catering to the rise of 'bleisure' travel with co-working rooms. It’s also common practice for hotels to host events such as weddings and team-building exercises.

Good to know: The RoomRaccoon PMS has a unique "grey rooms" feature that can be utilized to sell extra spaces/facilities.

Strategy 4: Pre-arrival upsells with a digital guest service menu.

All is not lost if guests don’t select add-ons when booking. Using technology such as RaccoonUpsell, a digital guest service menu that offers room upgrades and additional amenities, has been shown to improve a hotel's TrevPAR.

RaccoonUpsell provides a powerful channel for hotels to market, sell, and grow ancillary revenue streams. Download the RaccoonUpsell brochure.

Understanding the Importance of Calculating TrevPAR

If you want to know how well a hotel is doing, you have to look at TrevPAR.

By considering all of your hotel's revenue and comparing it to the number of rooms, TrevPAR offers a more comprehensive perspective than RevPAR.

With multiple streams of guest revenue, it has the power to greatly influence overall performance, particularly for hotels with added amenities like restaurants, bars, and spas. This information is valuable for hoteliers seeking to optimise their diversified revenue streams and enhance guest satisfaction.

Tracking TrevPAR with detailed revenue reports gives you an insight into popular revenue groups, and by comparing your hotel's CompSet, you can identify price disparities or opportunities for improvement in services and make changes to increase profitability.

Similarly, looking at RaccoonUpsell reports, you can identify popular amenities and room upgrades to increase prices without decreasing popularity, ultimately increasing TrevPAR.

TrevPAR Takeaways

If you want to grow your business, diversifying can be a great way to do it. Not only does it open you up to new opportunities, but it also helps you avoid relying too heavily on one source of income. Plus, it's often easier to convince an existing guest to try out new services than to find a brand-new one.

Here is a recap of TrevPAR growth strategies for your hotel:

  • Include add-ons in your hotel booking engine.
  • Create enticing holiday packages.
  • Make the most of the unused areas in your hotel.
  • Automate pre-arrival upsells with transactional emails.

One key to success is ensuring your guests are happy with their experience, so use this TrevPAR formula calculator to keep an eye on the important hotel metric to see how your strategies work.

Total TrevPAR:


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