What is the meaning / definition of TREVPAR in the hospitality industry?
TREVPAR stands for: Total Revenue Per Available Room
It is a hotel KPI that gives a preview of the total revenue from all departments which the room can generate. While RevPar only takes account of the revenue generated by the rooms.
This calculation is preferable for the management board and the accountants to have a broad and more generic view of the hotel’s potential and its actual performance. It is also a good benchmarking tool for all inclusive hotels or resorts.
How do you calculate TREVPAR?
- TREVPAR Formula: Total Revenue* / Total Available Rooms
*Total Revenue = Accommodation + Breakfast + Spa + Bar + Mini Bar +[Any other extra revenue]
- Total Revenue Per Available Room