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 (including additional room revenue) divided by every bed/room you have whether it was sold or not. Looking at Occupancy % by itself doesn't 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 REVPAR 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.