Short video explaining RevPAR (revenue per available room) as a hospitality metric that multiplies occupancy by average rate to evaluate revenue performance. It describes the occupancy–price tradeoff and says RevPAR helps find the optimal price/occupancy balance and compare performance across properties or time periods.
Sometimes owner nights are included, as long as they're not. So it's really important you check the definitions in this industry so far. But essentially, it's your occupancy of for a time period times your average rate for that same time period. And so what that does is we know just from general economics in high school, as price goes up, your demand is likely going to go down, and there's a trade off there. And what we want to determine is, given that trade off, where's kind of the best landing spot? And so what Revpar does is it incorporates that how much you sell, the occupancy times the rate, which is your price. And it lets you know, is that trade off improving your revenue performance or not? I think Revpar also allows you to compare multiple things your business on kind of the same basis. Right.
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