What is TrevPAR in hotels?
It answers the question RevPAR does not: how much each guest who walks through the door is really worth. In a hotel where accommodation is the only source of income, RevPAR and TrevPAR are the same number. The moment there is a restaurant, a spa or meeting rooms they part company, and the gap is exactly the business RevPAR cannot see.
How it is calculated
- Formula: total revenue ÷ available rooms.
- Total revenue: accommodation + food and beverage + spa + parking + meeting rooms + any other income.
- Example: €148,000 in total revenue across 930 available rooms gives a TrevPAR of €159.14, against a RevPAR of €116.67.
What it is for
- Valuing packages and experiences: a short break with dinner lifts TrevPAR even if RevPAR barely moves.
- Deciding about spaces: if you rent out meeting rooms or the spa, it is the only indicator that captures that income.
- Comparing segments: a corporate guest on half board is worth something different from an OTA guest on room only, and TrevPAR shows it.