It is a hotel KPI that gives a preview of the total revenue from all departments which the room can generate. While RevPar only takes account of the revenue generated by the rooms,TRevPAR assesses the total income a hotel generates on a per-available-room basis. TRevPAR can benefit your business in various ways.

It takes into account revenue from all departments (food and beverage sales, meeting space, spas, golf, parking etc.), departments with significant influence on the overall performance of your hotel, especially for full service hotels, which have F&B services. TRevPAR also covers various income sources, such cancellations.

TRevPAR can also be useful, when comparing your hotel to competition and competitor revenues. If TRevPAR for competitors is significantly higher, you may need to narrow in on various departments. Additionally, TRevPAR can help you understand why revenues were up during a specific time period. By comparing different groups to determine which made more of a revenue impact on your hotel, you can adjust your strategy to target different business in the future.

The formula to calculate TrevPAR:

Divide total revenue by total number of rooms.