RevPar is probably the most important metric to use when looking at production. Revenue Per Available Room (or bed) will give you the revenue booked (including additional room revenue) divided by every bed/room you have whether it was sold or not. At the same time, looking at the occupancy % by itself doesn't mean anything and neither does looking solely at ADR.
Hotel X has 10 rooms.
- If all the 10 rooms are sold for $1.00 each, the occupancy is 100%, and ADR is $1.00 and RevPar is $1.00 (($1.00 *10 reservations) / by 10 rooms)
- If 1 room is sold for $50, then ADR is $50, but the occupancy is 10%, which means RevPar is $5.00 (($50.00*1 reservation) / 10 rooms)
- Now if Hotel X sell 5 rooms for $15 the occupancy is 50%, their ADR is $15 and RevPar is $7.50 (($15.00 * 5 reservations)/ 10 rooms)
Below you will see the changes with more details.
How to Access Report and Filters
- Go to Reports
- Production Reports
- Use filters to begin narrowing down to what you need to see:
- Select the year and the comparison year
- Select exact dates
- Select which channel or source you would like to compare. In most cases its best to leave them all selected.
- In this example today is 9/03/2015 which is clearly marked by the vertical line. This line is very important to understand Pace.
- 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 us see pace.
- 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.
- 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.
- As long as this years line is on or above the Pace line you should do better than last year.
- However, if this year is below the Pace line, it may suggest that you are falling 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.