REVPAR is probably the most important metric to use when looking at production. Revenue Per Available Room (or bed) will give you the revenue you booked divided by every bed/room you have whether it was sold or not. Looking at Occupancy % by itself doesnt mean anything and neither does looking solely at ADR.
For example: My hotel has 10 rooms.
If I sell all 10 rooms for $1.00 each my occupancy is 100%, my ADR is $1.00 and my Revpar is $1.00 (($1.00 *10 reservations) / by 10 rooms)
If I sell 1 room for $50 my ADR is $50, but my occupancy is 10% which means REVPAR is $5.00 (($50.00*1 reservation) / 10 rooms)
Now if I sell 5 rooms for $15 my occupancy is 50%, my ADR is $15 and my REPAR is $7.50 (($15.00 * 5 reservations)/ 10rooms)
Below you will see how to graphically see these changes.
Accessing the Report and Filters
Go to Reports>Production Reports>RevPar
Once there you can click on Filters to begin narrowing down to what you need to see.
- Select the year and the comparrison year
- Select exact dates
- Even select which channel or source you would like to compare. In most cases its best to leave them all selected.
#1: In this example today is 9/03/2015 which is clearly marked by the verticle line. The today line is very important to understand Pace.
#2: Blue is this year and red is last year. All the dates before today are obviously in the past and therefore unactionable. However going forward there is a interesting Pink Shade that lets me see pace.
#3: The bottom of the Shaded Area is what we call the pace line. This line shows you what your RevPar was as of 9/03 of last year.
#4: The top or Red line shows you were you ended up. The area in the middle is the reservation growth (or pace) you experienced between 9/03 until that specific date.
#5: As long as this years line is on or above the Pace line I should do better than last year.
#6: However if this year is below the Pace line, it may suggest that I am fallling behind and should do something regarding this.
You can also toggle between Day, Week, or Month in order to see the exact detail you are looking for.