RevPAR Performance Analysis
RevPAR performance analysis is the practice of measuring, decomposing, and benchmarking hotel performance using revenue per available room and its companion metrics. RevPAR distills a hotel's success into a single figure, rooms revenue divided by rooms available, that equals average daily rate multiplied by occupancy and so captures both the price a hotel commands and how full it is. The metric anchors revenue management, whose objective Kimes framed as maximizing yield from fixed capacity, and it is the standard yardstick for comparing hotels. Enz, Canina, and Walsh, however, showed that relying on single industry averages is misleading because hotel performance is dispersed and skewed, which is why rigorous RevPAR analysis decomposes the metric into its drivers and benchmarks it against a competitive set with indices rather than crude averages.
Source record
Citations copied verbatim from the method’s source record. No claim-level verification is inferred from them.
- Enz, C. A., Canina, L., & Walsh, K. (2001). Hotel-industry averages: An inaccurate tool for measuring performance. Cornell Hotel and Restaurant Administration Quarterly, 42(6), 22-32. · DOI 10.1177/0010880401426002
- Kimes, S. E. (1989). Yield management: A tool for capacity-constrained service firms. Journal of Operations Management, 8(4), 348-363. · DOI 10.1016/0272-6963(89)90035-1
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