What is the meaning / definition of REVPATH in the hospitality industry?
RevPath stands for: Revenue Per Available Treatment Hour
RevPath is a calculation for Spa operations that takes measure to a more detailed level, given the need to “turn over” of rooms during the day. It is very similar to RevPar for Rooms. It helps the spa operation to manage time effectively.
It is a crucial KPI calculation, the first step for yield management in the spa industry.
How do you calculate REVPATH?
- REVPATH Formula: Spa Occupancy / Average Treatment Rate
- In practical terms, this means that a spa with a treatment room occupancy of 70% and an average-related expenditure of $200, has a RevPATH of $140
- 70% *200$ = 140 $
- Similarly, a twenty-room spa that makes $1600 on Fridays between 6:00 and 7:00 PM, has a RevPATH of $80
- 1600$ / (20 * 1) = 80 $